ABC Corp., a Non-Resident Foreign Corporation (NRFC) bought 10,000 (PV Php 100) shares of stocks of XYZ Corp., aDomestic Corporation (DC) in the amount Php 1 Million in 2010. On September 12, 2021, ABC Corp. sold the shares ofstock to DEF Corp., a Domestic Corporation for Php 2 Million.ChoicesPhp 150,000Php 600,000Php 300,000Php 250,000 GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022)OverBut not over The Tax shall bePlus of Excess Over250,000250,000400,00020%250,000400,000800,00030,00025%400,000800,0002,000,000130,00030%800,0002,000,000 8,000,000490,00032%2,000,0008,000,0002,410,00035%8,000,000

A non-resident is a person who does not live within the country but would be taxable by the country.…

Answered: ABC Corp., a Non-Resident Foreign…

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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On March 15, 2021, Smith Corp. (Smith) purchased 18,000 common shares of Costa Inc. (CI) for $72,000, plus transaction costs of $6,000. Smith elected to record the shares of Cl at fair value through other comprehensive income. On July 15, 2021, Smith received a $1.50 per share dividend. At December 31, 2021, the fair value of Cl's shares was $7.00 per share. On February 15, 2022, all the shares of CI were sold for $12.00 per share due to the favourable market rate of the shares. Smith's policy is to transfer the net balance of accumulated other comprehensive income to retained earnings upon derecognition of the investment in Cl's shares. Smith reports under IFRS. Required: a) Prepare all journal entries necessary for the investment-related transactions in 2021. b) Prepare all journal entries necessary for the sale of the shares on February 15, 2022.
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ABC Corp., a Non-Resident Foreign Corporation (NRFC) bought 10,000 (PV Php 100) shares of stocks of XYZ Corp., a Domestic Corporation (DC) in the amount Php 1 Million in 2010. On September 12, 2021, ABC Corp. sold the shares o stock to DEF Corp., a Domestic Corporation for Php 2 Million.