Assume Rosas Company is a resident foreign corporation using OSD, determine the amount of NCIT Rosas Company has the following data for the taxable year, 2018:CanadaPhilippinesin Php.in Php.Gross SalesCost of Salesother IncomeTotal Itemized deductions25,000,000.0072,000,000.0012,500,000.0058,500,000.004,000,000.0010,000,000.0010,250,000.0018,500,000.00In addition, Leni Company earned other income amounting to Php. 2,800,000 during the year,of which source cannot be identified that is, whether from within the Phippines or Canada.

Optional Standard Deduction (OSD): To determine how much a firm spends, the OSD is a simpler…

Answered: Assume Rosas Company is a resident…

Business

Accounting

Assume Rosas Company is a resident foreign corporation using OSD, determine the amount of NCIT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Choose the correct. Which of the following statements is not true under U.S. GAAP?a. Operating…

A: Operating segments can be determined by looking at a company's organization chart Companies that…

Q: Describe the financial statement implications of the foreign tax credit and a foreign subsidiary.

A: A foreign tax credit (FTC) is a tax benefit offered by various nations, such as the United States,…

Q: The effects of changes in foreign exchange rates states that where an entity has foreign operations,…

A: When determining the functional currency of a foreign operation, an entity should consider various…

Q: Clarke Company operates a subsidiary in another nation. What does the phrase functional currency…

A: Functional currency, which is popular among multinational corporations, reflects the major economic…

Q: Q1. Explain the differences between translation and remeasurement of financial statements of a…

A: Translation and remeasurement are relevant in case the parent company has subsidiaries in foreign…

Q: As the Chief Financial Officer (CFO) of a U.S. multinational corporation, create a plan to reduce…

A: Foreign-sourced income is the income that is earned or generated from activities conducted outside a…

Q: 5.Will a company use the same exchange rate when translating ,Assets ,Liabilities,Revenues and…

A: General Introduction: Translation of currency is a process where one currency is converted in terms…

Q: kau.8

A: The question is asking to identify the term used to describe a corporation that is incorporated in a…

Q: key Stone Incorporated, a U.S. corporation, received the following so fy the source of each item as…

A: Corporation - A company is a separate legal entity from its shareholders. Many of the same legal…

Q: The owner of a trading license for the NYSE is called a

A: NYSE or the New York Stock Exchange gives out trading license. The license is usually for a period…

Q: Clarke Company has a subsidiary operating in a foreign country. In relation to this subsidiary, what…

A: In relation to the subsidiary company, functional currency is the currency in which the entity…

Q: WHAT IS A CONCESSIONARY LOAN? Select one O a A LOAN FROM THE PARENT COMPANY TO ITS RIVAL COMPANIES…

A: In this question, we are required to determine what a concessionary loan means.

Q: Exchange differences arising on a monetary item that forms part of a reporting entity's net…

A: As per IFRS 21 OR PFRS 21 Accounting for foreign currency transactions, Monetary items are units of…

Q: Domestic corporation X owns all of the stock of domestic corporation Y, which, in turn, owns all of…

A: A U.S. shareholder is defined as a person as a U.S. citizen or a resident alien or who either on his…

Q: A subsidiary’s functional currency is the U.S. dollar. The exchange rate used to convert…

A: The results of a parent company's international subsidiaries are translated into the reporting…

Q: Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables…

A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…

Q: When we look at GAAP are corporations required by GAAP to have an accrual or cash basis of…

A: According to Generally Accepted Accounting Principles (GAAP), corporations are required to use the…

Q: Other comprehensive income includes all of the following, except: unrealized gains on available for…

A: Other comprehensive income includes income that does not need to consider under net income currently…

Question

Assume Rosas Company is a resident foreign corporation using OSD, determine the amount of NCIT

Rosas Company has the following data for the taxable year, 2018:
Canada
Philippines
in Php.
in Php.
Gross Sales
Cost of Sales
other Income
Total Itemized deductions
25,000,000.00
72,000,000.00
12,500,000.00
58,500,000.00
4,000,000.00
10,000,000.00
10,250,000.00
18,500,000.00
In addition, Leni Company earned other income amounting to Php. 2,800,000 during the year,
of which source cannot be identified that is, whether from within the Phippines or Canada.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define OSD & NCIT

VIEW

Step 2: Calculate the Net Income & Adjusted Total Net Income

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Identify a product that would be interested in importing and selling here in the U.S. What is the pros and cons of using any two methods of payment to settle the transaction with the overseas supplier of the product Importing and selling here in U.S.?
Calculation of Foreign Tax Credit (here is the answer for A&F. You need to complete Basket B&D and Basket E
Please help me to solve this problem
If the functional currency is determined to not be the foreign entity's local currency, translation is done using a. the current rate method b. the functional method c. the remeasurement method d. the derivative method
If a foreign corporation has to qualify to do business in a specific state, all of the following except which of these is required?
A translation adjustment must be calculated and disclosed when financial statements of a foreign subsidiary are translated into the parent’s reporting currency. How is this figure computed, and where is the amount reported in the financial statements?
What is unilever united states incorporation location?
2. Liang Corporation, a U.S. entity, owns 100% of ForCo, a non-U.S. corporation not engaged in a U.S. trade or business. Is Liang subject to any U.S. income tax on her dealings with ForCo? Explain.
How does a parent company determine the appropriate method for translating the financial statements of a foreign subsidiary?
what are implications for analysis of financial statements that result from the accounting for foreign currency translation?
Forex: Translation and RemeasurementThe following assets are held by a subsidiary in a foreign country: 1. At what amount should be reported as total assets if the financial statement is to be translated as of Jan. 31?2. At what amount should be reported as total assets if the financial statement is to be remeasured as of Jan. 31?
How to translate a foreign subsidiary’s financial statements into its parent’s reporting currency using the current rate method and calculate the related translation adjustment?