The taxpayer had the following data at the end of the current year: Total Assets, excluding land
Question:
The taxpayer had the following data at the end of the current year:
| Total Assets, excluding land - P60 million | Philippines | South Korea |
| INCOME | ||
| Sales | P15,000,000 | P5,000,000 |
| Rentals | 600,000 | 0 |
| Interest from Peso bank deposit | 40,000 | 0 |
| Interest from FC bank deposit | 30,000 | 50,000 |
| Royalties from patents | 100,000 | 150,000 |
| Dividends from domestic corporation | 100,000 | 0 |
| COSTS & EXPENSES | ||
| Cost of goods sold | 6,000,000 | 2,000,000 |
| Salaries & wages | 4,000,000 | 2,500,000 |
| Interest expense | 600,000 | 0 |
| Other operating expenses | 1,200,000 | 800,000 |
Assuming that the taxpayer is a domestic corporation claiming optional standard deduction, how much is the income tax due for the year?
Group of answer choices
P1,920,000
P1,800,000
P1,536,000
P3,000,000
ABC Corporation, a domestic corporation, owns 18% of the outstanding shares of Apple Corporation, a non-resident foreign corporation since August 1, 2015. On April 30, 2021, it received dividends amounting to P1,000,000 from Apple Corporation. In 2022, ABC Corporation utilizes the dividends received for its working capital requirements. What is the tax treatment of the dividends by ABC Corporation from Apple Corporation?
Group of answer choices
Dividends are subject to 20%/25% regular corporate income tax.
Dividends are subject to 10% final tax.
Dividends are subject to 25% final tax.
Dividends are tax-exempt.
A domestic corporation, with total assets, excluding land, of more than P100 million, has the following tax information for taxable years 2021 and 2022:
| 2021 (6th year of Operations) | 2022 (7th year of Operations) | |
| Gross income | P5,000,000 | P8,000,000 |
| Actual operating expenses | 7,000,000 | 3,000,000 |
| Net capital loss (other than from domestic shares of stock and real property) | 1,000,000 | 500,000 |
How much is the income tax due for taxable year 2021?
Group of answer choices
P750,000
P100,000
P0
P50,000
A domestic corporation, with total assets, excluding land, of more than P100 million, has the following tax information for taxable years 2021 and 2022:
| 2021 (6th year of Operations) | 2022 (7th year of Operations) | |
| Gross income | P5,000,000 | P8,000,000 |
| Actual operating expenses | 7,000,000 | 3,000,000 |
| Net capital loss (other than from domestic shares of stock and real property) | 1,000,000 | 500,000 |
How much is the income tax PAYABLE for taxable year 2022?
Group of answer choices
P1,250,000
P1,150,000
P1,125,000
P700,000
Expert Answer:
The detailed answer for the above question is provided below Answer 1 P1536000 Explanation The incom... View the full answer
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
