Determine the tax base of the depreciable property as of the end of the year 2021.
3. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation:
a. On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses
b. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022.
c. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate.
d. Interest income on deposit (already credited to ABC's deposit account) of P150,000 with 20% applicable tax rate.
e. Revenue receivable (accrued income) of P400,000 expected to be received in full on the year 2022.
f. Tax penalty and surcharges charged by the BIR for the tax assessment applicable to the past tax returns of P780,000.
QUESTIONS:
3. Determine the tax base of the depreciable property as of the end of the year 2021.
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