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Compute the following if the corporation avails of the 40% Optional Standard Deduction: 1. Taxable net income; and Income tax payable 2.

Compute the following if the corporation avails of the 40% Optional Standard Deduction: 1. Taxable net income; and Income tax payable 2.

FINANCIAL ACCOUNTING
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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Domestic corporation in general Assume that IYA, Inc. a domestic corporation engaged in the sale of goods, has the following income and expenses for Calendar Year ending 31 December 2024, its 5th year of business operation: Sales Cost of sales Expenses (allowable deductions): Salaries and allowances Office supplies expenses Transportation and travel expenses Representation expenses Repairs and maintenance Fuel, oil and lubricants Taxes and licenses Miscellaneous expenses P500,000,000 300,000,000 1. Taxable net income; and 2. Income tax payable 50,000,000 10,000,000 15,000,000 5,000,000 7,000,000 8,000,000 500,000 3,000,000 Its total assets as of end of year is P110,000,000 which includes the value of the land where its business entity is located amounting to P15,000,000. Required: c. Compute the following if the corporation avails of the 40% Optional Standard Deduction:
Transcribed Image Text:Domestic corporation in general Assume that IYA, Inc. a domestic corporation engaged in the sale of goods, has the following income and expenses for Calendar Year ending 31 December 2024, its 5th year of business operation: Sales Cost of sales Expenses (allowable deductions): Salaries and allowances Office supplies expenses Transportation and travel expenses Representation expenses Repairs and maintenance Fuel, oil and lubricants Taxes and licenses Miscellaneous expenses P500,000,000 300,000,000 1. Taxable net income; and 2. Income tax payable 50,000,000 10,000,000 15,000,000 5,000,000 7,000,000 8,000,000 500,000 3,000,000 Its total assets as of end of year is P110,000,000 which includes the value of the land where its business entity is located amounting to P15,000,000. Required: c. Compute the following if the corporation avails of the 40% Optional Standard Deduction:
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