ABC Corp has P100,000 collectibles from Mr. Naki Utang who became insolvent with P60,000 assets and P200,000 liabilities of which 20% is an income tax liability. How much is the deductible bad debts of ABC Corp?

ABC Corp has P100,000 collectibles from Mr. Naki Utang who became insolvent with P60,000 assets and P200,000 liabilities of which 20% is an income tax liability. How much is the deductible bad debts of ABC Corp?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 19MCQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

100%

ABC Corp has P100,000 collectibles from Mr. Naki Utang who became
insolvent with Pó0,000 assets and P200,000 liabilities of which 20% is an
income tax liability. How much is the deductible bad debts of ABC Corp?
12,500
20,000
87,500
100,000
None of the above

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