35. LTE Corporation, a domestic corporation engaged in the manufacture of re clothes, had the following data during the taxable year: Gross sales Cost of sales (direct labor, P5.4 M) Operating expenses Labor training expenses A. 5,250,000 B. 5,040,000 P 30,000,000 18,000,000 The training expenses were incurred for skills development of enterprise based trainees in public higher education institutions covered by apprenticeship under the Labor Code, with Certification from TESDA. How much is the taxable total allowable deductions from gross income? C. 4,750,000 D. 4,250,000 4,500,000 500,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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35. LTE Corporation, a domestic corporation engaged in the manufacture of ready-to-wear
clothes, had the following data during the taxable year:
Gross sales
Cost of sales (direct labor,
P5.4 M)
Operating expenses
Labor training expenses
P 30,000,000
18,000,000
The training expenses were incurred for skills development of enterprise based
trainees in public higher education institutions covered by apprenticeship under
the Labor Code, with Certification from TESDA.
How much is the taxable total allowable deductions from gross income?
A. 5,250,000
B. 5,040,000
C. 4,750,000
D. 4,250,000
36. The following interest payments were made by an individual income taxpayer in 2022:
Interest on loan from BDO used to finance
a business
Interest on loan from Pag-Ibig to build
residence
The deductible amount of interest is
A. 80,000
B. 82,500
C. 175,000
D. 221, 500
4,500,000
500,000
Interest on loan obtained from brother
and used in business
Interest on loan from BPI used to buy
computer equipment in the office
Interest for late payment of value-added
tax
Interest on purchase price of residential
lot bought on installments
Interest payment on a debt which has
prescribed
DEO
P 50,000
100,000
25,000
30,000
2,500
2,000
12,000
Transcribed Image Text:35. LTE Corporation, a domestic corporation engaged in the manufacture of ready-to-wear clothes, had the following data during the taxable year: Gross sales Cost of sales (direct labor, P5.4 M) Operating expenses Labor training expenses P 30,000,000 18,000,000 The training expenses were incurred for skills development of enterprise based trainees in public higher education institutions covered by apprenticeship under the Labor Code, with Certification from TESDA. How much is the taxable total allowable deductions from gross income? A. 5,250,000 B. 5,040,000 C. 4,750,000 D. 4,250,000 36. The following interest payments were made by an individual income taxpayer in 2022: Interest on loan from BDO used to finance a business Interest on loan from Pag-Ibig to build residence The deductible amount of interest is A. 80,000 B. 82,500 C. 175,000 D. 221, 500 4,500,000 500,000 Interest on loan obtained from brother and used in business Interest on loan from BPI used to buy computer equipment in the office Interest for late payment of value-added tax Interest on purchase price of residential lot bought on installments Interest payment on a debt which has prescribed DEO P 50,000 100,000 25,000 30,000 2,500 2,000 12,000
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