During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation. How much is the allowable regular itemized deductions?
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During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation.
How much is the allowable regular itemized deductions?
A foreign corporation sold a condominium unit to Mr. Mauricio for P10 million which it acquired at a cost of P5 million. The fair market value of the said property per tax declaration was P12 million while its zonal value was P15 million.
How much is the
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- An individual, who is a real estate dealer, sold a residential lot in Quezon City at a gain of P100,000.00 (selling price of P900,000.00 and cost is P800,00.00). The sale is subject to income tax as follows: a) 6% capital gains tax on the gain; b) 6% capital gains tax on the gross selling price of fair market value, whichever is higher; c) Ordinary income tax at the graduated rates of net taxable income; d) 8 % income tax on net taxable income.USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo’s assets generating foreign-source income is $5,000,000. The tax book value of USCo’s assets generating U.S.-source income is $45,000,000. How much of the interest expense is allocated and apportioned to foreign-source income?USCO incurred $110,000 in interest expense for the current year. The tax book value of USCO's assets generating foreign-source income is $5,500,000. The tax book value of USCO's assets generating U.S.-source income is $55,000,000. How much of the interest expense is allocated and apportioned to foreign-source income? Do not round intermediate computations but if required, round your final answer to the nearest dollar. %24
- A corporation sold a parcel of land used in its operation abroad. The selling price is P3,000,000. The property was acquired five years ago at P1,500,000. What is the amount of final income tax on the above transactions? Select the correct response: 180,000 90,000 3,000,000 ZeroKris, Inc. sold its vacant lot to Moca Corp. for P 10,000,000 which it acquired at a cost of P 5,000,000. The fair market value of the said property per tax declaration is P 12,000,000, while its zonal value is P 15,000,000. How much is the income tax applicable on the transactions? P 1,500,000 P 900,000 P 720,000 P 600,000Qalvin Corporation, a MSME, reported the following gross income and expenses in 2022: Philippines Abroad Total Gross income P400,000 P300,000 P700,000 Deductions 200,000 150,000 350,000 Taxable income P200,000 P150,000 P350,000 Compute the income tax due if Qalvin is an non-resident owner or lessor of vessels Qalvin Corporation, a MSME, reported the following in 2023: in 2022: Philippines Abroad Total Gross income P500,000 P200,000 P500,000 Direct Deductions 200,000 300,000 500,000 Common Expenses 150,000 Compute the income tax due if Qalvin is a resident foreign corporation
- The tax return of Okinawa Company indicates taxable profit of P15,000,000 on which a tax liability of P5,250,000 has been recognized. Following is a list of items that may be required to determine accounting profit from the amount of taxable profit: Accelerated depreciation for income tax purposes was P2,000,000 and straight-line financial depreciation is P1,500,000 Insurance premium of P100,000 on the life of an officer with Okinawa as beneficiary was not included as a deduction in the tax return Interest on treasury bills was not included in the tax return. During the year, Okinawa received P2,500,000 on these investments. What was Okinawa’s accounting profit?Stevenson and brothers Ltd is an Australian corporation (tax resident) with a turnover of less than $40 million. It received $900,000 in assessable revenue, $500,000 in allowable deductions, and $100,000 in non-assessable non-exempt income during the current tax year. Interest revenue accounted for $600,000 of their assessable income. It also has $40,000 in tax offests available. Calculate the Taxable income and their Net tax payable (refundable) show all workings, label all relevant figures, state all relevant analysisABC corporation provided the following data for calendar year ending December 31, 2021 ($1 = P50). Use new tax rate under CREATE Law (RA 11534) Philippines: Gross Income - P4,000,000 Deductions - P2,500,000 Abroad: Gross income - $40,000 Deductions - $15,000 Income tax paid - $3,000 j. if it is a non-resident lessor of aircraft, machineries and equipment, compute for its income tax.
- The following are the some of the income payments of Treble Company, a domestic corporation, during the third quarter: • July 16 - Paid P150,000 passive royalties to a resident foreign corporation. The amount is gross of tax. • July 27 - The grand winner of its Midyear Pabuenas Raffle Promo cash out her P80,000 winnings, net of final tax. • August 17 - Paid the rentals for the use of a vessel owned by a non-resident lessor, P200,000 (gross of final tax). • August 31 - Hosted a competition where the grand prize for the winner was P50,000. • September 8 - Incurred and paid P250,000 to oil exploration service contractors. • September 30 - Declared and paid dividends to the following: P85,000 to resident citizens, P56,000 to resident aliens, P20,000 to non-resident aliens engaged in trade and P164,000 to domestic corporations. On the Form 1601FQ for the taxable quarter, what amount is applicable to?Watanabe Corporation is selling one of its assets for $1,700. The asset originally cost $10,000. It has been depreciated under MACRS using a five-year recovery period, and it has been depreciated for four full years. Assume that the tax rate is 40 percent on both ordinary income and capital gains. What are the tax effects of this transaction? Jellibean Corporation will replace one of its existing assets with a newer type. The existing asset was purchased two years ago at a cost of $30,000 and was being depreciated under MACRS using a five-year recovery period. This existing asset can be sold for $25,000. The new asset that they plan to buy will cost $75,000 and will also be depreciated under MACRS using a five-year recovery period. If the assumed tax rate is 40 percent on both ordinary income and capital gains, the initial investment will be equal to what amount after adjusting for taxes? Calculate the initial purchase price for an asset that has a book value of $34,800 and has…44. An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount? (a) In the income statement at GHS600,000. (b) In equity at GHS1.2 million. (c) In statement of recognized income and expense at GHS1.4 million. (d) In retained earnings at GHS700,000. 45. The current liabilities of an entity include fines and penalties for environmental damage. The fines and penalties are stated at GHS10 million. The fines and penalties are not deductible for tax purposes. What is the tax base of the fines and penalties? (a) GHS10 million. (b) GHS3 million. (c) GHS13 million. (d) Zero.