Covid Private School (CPS) is a non-profit private educational institution with an issued permit to operate from the Commission on Higher Education (CHED). CPS uses a fiscal year accounting ending July 31st of each year. On July 31, 2021, it recorded total gross receipts amounting to P18,000,000.00, of which P10,000,000.00 came from education-related activities, while P8,000,000.00 from other unrelated business activities. Also, CPS recorded cost of service and operating expenses from related activities amounting to P2,000,000.00 and P1,000,000,00, respectively, and from unrelated business activities amounting to P3,000,000.00 and P2,000,000.00, respectively. Required: 1. How much is the taxable income of CPS? 2. How much is the tax due of CPS?
Covid Private School (CPS) is a non-profit private educational
institution with an issued permit to operate from the Commission on
Higher Education (CHED). CPS uses a fiscal year accounting ending July
31st of each year. On July 31, 2021, it recorded total gross receipts
amounting to P18,000,000.00, of which P10,000,000.00 came from
education-related activities, while P8,000,000.00 from other unrelated
business activities. Also, CPS recorded cost of service and operating
expenses from related activities amounting to P2,000,000.00 and
P1,000,000,00, respectively, and from unrelated business activities
amounting to P3,000,000.00 and P2,000,000.00, respectively.
Required:
1. How much is the taxable income of CPS?
2. How much is the tax due of CPS?
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