OVERVIEW The ABC Humble Corporation is a trading company which also...

OVERVIEW

• The ABC Humble Corporation is a trading company which also involves in rental business as its secondary business activities.
• Date of incorporation or organization is November 21, 2015.
• Total assets of the corporation is 125,000,100 as of December 31, 2021, excluding the value of land amounting to 5,700,000.
• The company address is located at Brgy. Sabang Lipa City, Batangas under RDO Code of 059, with registered tax identification number of 008-125-127-000.
• The annual income tax return filing is for the calendar year ended December 31, 2021.
• The method of deductions used by ABC Humble Corporation is itemized deductions.
• The depreciation expense for the year ended 2021 is 120,000.
• The MCIT rate to be used is 1%.

CASE

ABC Humble Corporation had the following data for the year ended December 31, 2021.
Sales			18,514,000
Cost of Sales		12,589,520
Income from rental		1,500,000
Donations received from outside party	150,000
Interest income from bank deposits	215,000
Royalties			136,500
Dividend income received from a domestic corporation	256,800
Deductions:
Amortization		125,600
Bad Debts		112,500
Charitable and other contributions	51,200
Depletion		-
Entertainment, amusement and recreation	13,650
Fringe Benefits		21,500
Losses			36,500
Pension Trust		-
Rental			136,900
Research and Development	-
Salaries, wages and allowances	1,124,550
SSS, Philhealth and HDMF Contributions	136,800
Taxes and Licenses		215,800
Transportation and Travel	12,300
Other expenses:
Professional fees		36,000
Repairs and maintenance	125,800
Gas and Oil		15,000
Office Supplies		5,400

Income tax payments under regular/normal rate from previous quarters	-
Creditable Tax Withheld from the previous quarters	311,500
Creditable Tax Withheld for the 4th quarter	185,000

1. Prepare the Income Tax Return for the year ended December 31, 2021 using form 1702-RT below.

https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1702-RT%20Jan%202018%20ENCS%20Final%20v3.pdf

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