4-5. Asta, Corp has the following data: Gross income of P 400,000 • Interest expenses-business amounting to 50,000 • Interest income subject to final tax-net amounting to 9,600 • Ordinary loss of P 10,000 • Bad debts of 30,000 ( 10,000 is guaranteed by an insurance company and 5,000 was set as provision for bad debts expenses) • Wagering losses of P 3,000 • Loss on wash sales of P 1,000 • Donors tax expenses of P 2,000 • Percentage tax (sec 116 OPT rate) of P 5,000 What is the allowed deductions for Asta? What is the taxable net income of Asta?

4-5. Asta, Corp has the following data: Gross income of P 400,000 • Interest expenses-business amounting to 50,000 • Interest income subject to final tax-net amounting to 9,600 • Ordinary loss of P 10,000 • Bad debts of 30,000 ( 10,000 is guaranteed by an insurance company and 5,000 was set as provision for bad debts expenses) • Wagering losses of P 3,000 • Loss on wash sales of P 1,000 • Donors tax expenses of P 2,000 • Percentage tax (sec 116 OPT rate) of P 5,000 What is the allowed deductions for Asta? What is the taxable net income of Asta?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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