ABC Corporation, a domestic corporation had the following data for 2021 taxable year: 5,000,000 2,000,000 500,000 Sales Cost of goods sold General selling and administrative expenses Interest income from Philippine bank deposit Rental income (net of 5% withholding tax) Dividend income: From domestic corporation From foreign corporation 100,000 190,000 60,000 50,000 Capital gains from sale of domestic shares of stocks sold directly to buyer Dividend declared and paid during the year Retained Earnings, 12/31/2017 Par Value of outstanding shares, 12/31/2018 Appropriation for future plant expansion 75,000 500,000 1,000,000 500,000 800,000

ABC Corporation, a domestic corporation had the following data for 2021 taxable year: 5,000,000 2,000,000 500,000 Sales Cost of goods sold General selling and administrative expenses Interest income from Philippine bank deposit Rental income (net of 5% withholding tax) Dividend income: From domestic corporation From foreign corporation 100,000 190,000 60,000 50,000 Capital gains from sale of domestic shares of stocks sold directly to buyer Dividend declared and paid during the year Retained Earnings, 12/31/2017 Par Value of outstanding shares, 12/31/2018 Appropriation for future plant expansion 75,000 500,000 1,000,000 500,000 800,000

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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Question

(Philippine domestic corporation)

Questions:

1. The income tax due is

2. The income tax payable is

3. The improperly accumulated earnings tax is

ABC Corporation, a domestic corporation had the following data for 2021 taxable year:
5,000,000
2,000,000
500,000
Sales
Cost of goods sold
General selling and administrative expenses
Interest income from Philippine bank deposit
Rental income (net of 5% withholding tax)
Dividend income:
From domestic corporation
From foreign corporation
100,000
190,000
60,000
50,000
Capital gains from sale of domestic shares of
stocks sold directly to buyer
Dividend declared and paid during the year
Retained Earnings, 12/31/2017
Par Value of outstanding shares, 12/31/2018
Appropriation for future plant expansion
75,000
500,000
1,000,000
500,000
800,000

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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