Assume that IYA Inc., a domestic corporation engaged in the sale of goods, has the following income
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Question:
Assume that IYA Inc., a domestic corporation engaged in the sale of goods, has the following income and expenses for Calendar Year ending December 31, 2024, its 5th year of business operation:
Sales | 500,000,000.00 | |
Cost of sales | 300,000,000.00 | |
Expenses (allowable deductions): | ||
Salaries and allowances | 50,000,000.00 | |
Office supplies expenses | 10,000,000.00 | |
Transportation and travel expenses | 15,000,000.00 | |
Representation expenses | 5,000,000.00 | |
Repairs and maintenance | 7,000,000.00 | |
Fuel, oil and lubricants | 6,000,000.00 | |
Taxes and licenses | 500,000.00 | |
Miscellaneous expenses | 3,000,000.00 |
Its total assets as of end of year is P110,000,000.00 which includes the value of the land where its business entity is located amounting to P15,000,000.00.
REQUIREMENT
- Compute the following if the corporation avails of the 40% Optional Standard Deduction -
- Taxable net income; and
- Income tax payable Note: The income tax payable should be the higher between the MCIT and the Regular Income Tax.
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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