PHILIPPINES - Income TaxA. Using itemized deductions, determine the income tax payable at the end of the year (TRAIN LAW)B. Determine the final tax on passive income. A Domestic Corporation provided the following results of operations for 2020 taxable year:Sales6,200,000Salaries and wages excluding fringe benefits/de minimis350,0002,500,000De minimis benefits provided to rank and fileDe minimis benefits provided to managerial employeesCost of sales70,000Dividend income from DC60,00030,000Dividend income from RC30,000Fringe benefits provided to rank and file50,000Dividend income from NRC20,000Fringe benefits provided to managerial employees156,000Interest income from notes receivable75,000Taxes and licenses50,000Interest income from peso bank deposits in Manila100,000Refund of local business taxes and licenses from 201910,000Interest income from $ deposits in Taguig40,000Tax assessment on unpaid local business taxes100,000Interest income from bank deposits abroad30,000Interest expense on the tax assessment15,000Royalty income40,000Surcharge and penalties on the tax assessment25,000Capital gain on sale at 6M of land in the Philippines held for 10 years 500,000Utilities expense100,000Capital gain in sale of a 10-year bonds of a domestic corporationheld for 8 years30,000Casualty losses60,000Capital loss on sale of bonds of a domestic corporation held for 120,000Shrinkage on the value of short-term debt securities5,000yearCapital gains on sale of shares of stocks of a domestic corporationheld for 6 months, sold directly to a buyerCapital gains on sale of shares of stocks of a domestic corporationheld for 6 months, sold thru PSE15,000Depreciation expense30,00012,500Dividend declared and paid200,000Income from trust indenture with Security bank25,000Income tax paid for the first 3 quarters75,000Provision for bad debts15,000Bad debts written off20,000Recovery of bad debts written-off preceding year10,000Determine the final tax on passive income (Train law). A Domestic Corporation provided the following results of operations for 2020 taxable year:Sales6.200,000Salaries and wages excluding fringe benefits/de minimis350,000Cost of sales2,500,000De minimis benefits provided to rank and file70,000Dividend income from DC60,000De minimis benefits provided to managerial employees30,000Dividend income from RC30,000Fringe benefits provided to rank and file50,000Dividend income from NRC20,000Fringe benefits provided to managerial employees156,000Interest income from notes receivable75,000Taxes and licenses50,000Interest income from peso bank deposits in Manila100,000Refund of local business taxes and licenses from 201910,000Interest income from $ deposits in Taguig40,000Tax assessment on unpaid local business taxes100.000Interest income from bank deposits abroad30,000Interest expense on the tax assessment|15,000Royalty income40,000Surcharge and penalties on the tax assessment25,000Capital gain on sale at 6M of land in the Philippines held for 10 years500,000Utilities expense100,000Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years30,000Casualty losses60,000Capital loss on sale of bonds of a domestic corporation held for 1 year20,000Shrinkage on the value of short-term debt securities5,000Capital gains on sale of shares of stocks of a domestic corporation held for 6months, sold directly to a buyer15,000Depreciation expense30.000Capital gains on sale of shares of stocks of a domestic corporation held for 6months, sold thru PSE12,500Dividend declared and paid200,000Income from trust indenture with Security bank25.000Income tax paid for the first 3 quarters75.000Provision for bad debtsBad debts written off15,00020,000Recovery of bad debts written-off preceding year10,000Using itemized deductions, determine the income tax payable at the end of the year (Train law).

Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…

Answered: A. Using itemized deductions, determine…

A. Using itemized deductions, determine the income tax payable at the end of the year (TRAIN LAW) B. Determine the final tax on passive income.

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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