PROBLEM 39

A corporation presented to us the following data for the taxable year 2018.

a. Gross Profit from sales-Philippines P860,000

b. Gross Profit from sales-Abroad 350,000

c. Business Expenses - Phil. 305,000

d. Business Expenses - Abroad 230,000

e. Rental Income - Phil. 74,000

f. Interest Income on receivables - Abroad 21,000

g. Interest Income on bank deposit - Phil. 14,600

h. Dividend Income from domestic corp. - Phil. 12,700

Compute the Taxable Net Income and Income Tax Due assuming that the corporation is a:

a. Domestic Corporation

b. Resident Foreign Corporation

PROBLEM 40

A corporation, during the year 2019, had gross income within the Philippines as well as without the Philippines of P895,000 and P640,000, respectively. Its business expenses within the Philippines amounted to P538,000 whereas those outside the Philippines totaled P415,000.

Compute the corporate income tax due assuming that the corporation is a:

a. domestic corporation

b. resident foreign corporation

c. non-resident foreign corporation

d. non-resident owner of vessels

e. non-profit hospital

f. proprietary educational institution:

Case (1) If the entire amount of the gross income represents income derived from educational related activities.

Case (2) If 56% of the gross income represents income derived from unrelated educational activities.