The following information were taken from the records of ABC Inc., a domestic corporationin its 4th year of operations:Gross profit from salesCapital gain on sale directly to buyer of shares in a domesticicorporationDividend received during the month of December from:Domestic corporationResident foreign corporation (the ratio of gross income in the Philippinesover gross income from all sources for the past 3 years is 80%)Interest on:Bank depositTrade receivableBusiness expensesIncome tax withheldQuarterly income tax paymentsExcess tax payment 2020AssetsP31,000,0001,000,000c. P1,037,500d. P1,065,000200,000100,000200,000500,00021,000,0001,150,000600,000100,000125,000,000How much is the income tax payable assuming the taxable year is 2020?a. P330,000b. P430,000

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How much is the income tax payable assuming the taxable year is 2020?

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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Question

100%

The following information were taken from the records of ABC Inc., a domestic corporation
in its 4th year of operations:
Gross profit from sales
Capital gain on sale directly to buyer of shares in a domestici
corporation
Dividend received during the month of December from:
Domestic corporation
Resident foreign corporation (the ratio of gross income in the Philippines
over gross income from all sources for the past 3 years is 80%)
Interest on:
Bank deposit
Trade receivable
Business expenses
Income tax withheld
Quarterly income tax payments
Excess tax payment 2020
Assets
P31,000,000
1,000,000
c. P1,037,500
d. P1,065,000
200,000
100,000
200,000
500,000
21,000,000
1,150,000
600,000
100,000
125,000,000
How much is the income tax payable assuming the taxable year is 2020?
a. P330,000
b. P430,000

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How much is the income tax payable assuming the taxable year is 2021?

a. 330,000

b. 775,000

c. 800,000

d. 3,180,000

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