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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education