I partnership forme
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer question 11 only

Transcribed Image Text:AB Partnership is a commercial partnership formed by Atienza and Bautista.
The results of operations for the year 2021, its 5h year of operations, were as
follows:
Gross sales
25,000,000
Cost of sales
10,000,000
Salaries expense
Rent expense
Utilities expense
Depreciation expense
Miscellaneous expense
Personal income and expenses of the partners:
3,800,000
1,650,000
175,000
120,000
48,000
Atienza
Bautista
3,250,000
1,170,000
250,000
Gross income
3,800,000
Deductible expenses
Dividend from domestic corp.
Dividend from foreign corp.
Prize, supermarket raffle
Royalties, books
2,050,000
300,000
120,000
82,500
150,000
75,000
180,000
100,000
8. How much is the net taxable income of the general partnership?
9. How much is the regular corporate income tax due?
Tax rate RCIT is 25%
10. How much is the minimum corporate income tax?
Tax rate MCIT is 1%
11. How much is the share of each partner in the net income of the partnership?
"nothing follows
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