ABC Corporation has the following data for the 2019: Gross Income, Philippines P2,500,000 Expenses, Philippines 1,000,000 Gross Income, Japan 1,500,000 800,000 Expenses, Japan Interest on bank deposits, Philippines How much is the income tax due if ABC Corporation is a foreign corporation with no branch or office in the Philippines? 20,000

ABC Corporation has the following data for the 2019: Gross Income, Philippines P2,500,000 Expenses, Philippines 1,000,000 Gross Income, Japan 1,500,000 800,000 Expenses, Japan Interest on bank deposits, Philippines How much is the income tax due if ABC Corporation is a foreign corporation with no branch or office in the Philippines? 20,000

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

ABC Corporation has the following data for the 2019:
Gross Income, Philippines
P2,500,000
1,000,000
1,500,000
800,000
Expenses, Philippines
Gross Income, Japan
Expenses, Japan
Interest on bank deposits, Philippines
How much is the income tax due if ABC Corporation is a foreign
corporation with no branch or office in the Philippines?
O P756,000
OP664,000
O P660,000
OP450,000
20,000
K

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