A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000 Interest on bank deposit, net of 20% withholding tax 40,000 Dividend income from a domestic corporation 100,000 An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a depreciable life of 25 years. a. Compute the income tax still due and payable in 2X18. b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.
A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000 Interest on bank deposit, net of 20% withholding tax 40,000 Dividend income from a domestic corporation 100,000 An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a depreciable life of 25 years. a. Compute the income tax still due and payable in 2X18. b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A non-profit domestic hospital has the following data during the year 2x18:
Gross income from hospital operation P2,000,000
Operating Expenses (excluding depreciation for the new hospital building) 500,000
Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000
Interest on bank deposit, net of 20% withholding tax 40,000
Dividend income from a domestic corporation 100,000
An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a
depreciable life of 25 years.
a. Compute the income tax still due and payable in 2X18.
b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.
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