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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.

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
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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PHILIPPINES - Income Tax

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.

 

A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales 6,200,000 Salaries and wages excluding fringe benefits/de minimis 350,000 2,500,000 De minimis benefits provided to rank and file De minimis benefits provided to managerial employees Cost of sales 70,000 Dividend income from DC 60,000 30,000 Dividend income from RC 30,000 Fringe benefits provided to rank and file 50,000 Dividend income from NRC 20,000 Fringe benefits provided to managerial employees 156,000 Interest income from notes receivable 75,000 Taxes and licenses 50,000 Interest income from peso bank deposits in Manila 100,000 Refund of local business taxes and licenses from 2019 10,000 Interest income from $ deposits in Taguig 40,000 Tax assessment on unpaid local business taxes 100,000 Interest income from bank deposits abroad 30,000 Interest expense on the tax assessment 15,000 Royalty income 40,000 Surcharge and penalties on the tax assessment 25,000 Capital gain on sale at 6M of land in the Philippines held for 10 years 500,000 Utilities expense 100,000 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 20,000 Shrinkage on the value of short-term debt securities 5,000 year Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold thru PSE 15,000 Depreciation expense 30,000 12,500 Dividend declared and paid 200,000 Income from trust indenture with Security bank 25,000 Income tax paid for the first 3 quarters 75,000 Provision for bad debts 15,000 Bad debts written off 20,000 Recovery of bad debts written-off preceding year 10,000 Determine the final tax on passive income (Train law).
Transcribed Image Text:A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales 6,200,000 Salaries and wages excluding fringe benefits/de minimis 350,000 2,500,000 De minimis benefits provided to rank and file De minimis benefits provided to managerial employees Cost of sales 70,000 Dividend income from DC 60,000 30,000 Dividend income from RC 30,000 Fringe benefits provided to rank and file 50,000 Dividend income from NRC 20,000 Fringe benefits provided to managerial employees 156,000 Interest income from notes receivable 75,000 Taxes and licenses 50,000 Interest income from peso bank deposits in Manila 100,000 Refund of local business taxes and licenses from 2019 10,000 Interest income from $ deposits in Taguig 40,000 Tax assessment on unpaid local business taxes 100,000 Interest income from bank deposits abroad 30,000 Interest expense on the tax assessment 15,000 Royalty income 40,000 Surcharge and penalties on the tax assessment 25,000 Capital gain on sale at 6M of land in the Philippines held for 10 years 500,000 Utilities expense 100,000 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 20,000 Shrinkage on the value of short-term debt securities 5,000 year Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold thru PSE 15,000 Depreciation expense 30,000 12,500 Dividend declared and paid 200,000 Income from trust indenture with Security bank 25,000 Income tax paid for the first 3 quarters 75,000 Provision for bad debts 15,000 Bad debts written off 20,000 Recovery of bad debts written-off preceding year 10,000 Determine the final tax on passive income (Train law).
A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales 6.200,000 Salaries and wages excluding fringe benefits/de minimis 350,000 Cost of sales 2,500,000 De minimis benefits provided to rank and file 70,000 Dividend income from DC 60,000 De minimis benefits provided to managerial employees 30,000 Dividend income from RC 30,000 Fringe benefits provided to rank and file 50,000 Dividend income from NRC 20,000 Fringe benefits provided to managerial employees 156,000 Interest income from notes receivable 75,000 Taxes and licenses 50,000 Interest income from peso bank deposits in Manila 100,000 Refund of local business taxes and licenses from 2019 10,000 Interest income from $ deposits in Taguig 40,000 Tax assessment on unpaid local business taxes 100.000 Interest income from bank deposits abroad 30,000 Interest expense on the tax assessment |15,000 Royalty income 40,000 Surcharge and penalties on the tax assessment 25,000 Capital gain on sale at 6M of land in the Philippines held for 10 years 500,000 Utilities expense 100,000 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 year 20,000 Shrinkage on the value of short-term debt securities 5,000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer 15,000 Depreciation expense 30.000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold thru PSE 12,500 Dividend declared and paid 200,000 Income from trust indenture with Security bank 25.000 Income tax paid for the first 3 quarters 75.000 Provision for bad debts Bad debts written off 15,000 20,000 Recovery of bad debts written-off preceding year 10,000 Using itemized deductions, determine the income tax payable at the end of the year (Train law).
Transcribed Image Text:A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales 6.200,000 Salaries and wages excluding fringe benefits/de minimis 350,000 Cost of sales 2,500,000 De minimis benefits provided to rank and file 70,000 Dividend income from DC 60,000 De minimis benefits provided to managerial employees 30,000 Dividend income from RC 30,000 Fringe benefits provided to rank and file 50,000 Dividend income from NRC 20,000 Fringe benefits provided to managerial employees 156,000 Interest income from notes receivable 75,000 Taxes and licenses 50,000 Interest income from peso bank deposits in Manila 100,000 Refund of local business taxes and licenses from 2019 10,000 Interest income from $ deposits in Taguig 40,000 Tax assessment on unpaid local business taxes 100.000 Interest income from bank deposits abroad 30,000 Interest expense on the tax assessment |15,000 Royalty income 40,000 Surcharge and penalties on the tax assessment 25,000 Capital gain on sale at 6M of land in the Philippines held for 10 years 500,000 Utilities expense 100,000 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 year 20,000 Shrinkage on the value of short-term debt securities 5,000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer 15,000 Depreciation expense 30.000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold thru PSE 12,500 Dividend declared and paid 200,000 Income from trust indenture with Security bank 25.000 Income tax paid for the first 3 quarters 75.000 Provision for bad debts Bad debts written off 15,000 20,000 Recovery of bad debts written-off preceding year 10,000 Using itemized deductions, determine the income tax payable at the end of the year (Train law).
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