AB Partnership is a commercial partnership formed by Atienza and Bautista. The results of operations for the
Question:
AB Partnership is a commercial partnership formed by Atienza and Bautista. The results of operations for the year 2021, its 5th year of operations, were as follows:
Gross sales25,000,000
Cost of sales10,000,000
Salaries expense 3,800,000
Rent expense 1,650,000
Utilities expense 175,000
Depreciation expense 120,000
Miscellaneous expense 48,000
Personal income and expenses of the partners:
AtienzaBautista
Gross income3,250,0003,800,000
Deductible expenses1,170,0002,050,000
Dividend from domestic corp. 250,000 300,000
Dividend from foreign corp. 120,000 82,500
Prize, supermarket raffle 150,000 75,000
Royalties, books 100,000 180,000
8. How much is the net taxable income of the general partnership? _____________
9. How much is the regular corporate income tax due? ____________
Tax rate RCIT is 25%
10. How much is the minimum corporate income tax? ____________
Tax rate MCIT is 1%
11. How much is the share of each partner in the net income of the partnership?
____________________
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