BBBB Construction Corporation, a domestic corporation, has the following data for 2021 taxable year: Gross income, Phil.
Question:
BBBB Construction Corporation, a domestic corporation, has the following data for 2021 taxable year:
Gross income, Phil. | P100,000,000 |
Gross income, USA | 50,000,000 |
Gross income, Japan | 50,000,000 |
Expenses, Phil. | 30,000,000 |
Expenses, USA | 20,000,000 |
Expenses, Japan | 10,000,000 |
Foreign income tax credit | 2,500,000 |
Other income: | |
Dividend from San Miguel Corp., a domestic corp. | 7,000,000 |
Dividend from Ford Motors (RFC; income within) | 12,000,000 |
Gain on sale of shares of a domestic corporation sold listed and traded thru PSE | 15,000,000 |
Royalty income (classified as active income), Philippines | 5,000,000 |
Royalty income, USA | 10,000,000 |
Interest income on peso bank deposit | 8,000,000 |
Interest income on FCDS deposit | 3,000,000 |
Interest from receivables in the Philippines | 6,000,000 |
Rent income, land in USA | 25,000,000 |
Rent income, Building in the Philippines | 10,000,000 |
The Company also sold a condominium classified as capital asset for P200,000,000. The cost of the Condominium is P100,000,000 while its Zonal Value is P300,000,000.
The Company's total assets excluding the condominium sold and the land on which the business office building is situated amounted to P100,000,000.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill