If the value of its total assets do no exceed P100,000,000, compute for the income tax payable if the taxpayer is a domestic corporation. 3. Computation of income tax. Simple Corporation, a corporationengaged in the business of manufacturing ready-to-wear clothes, givesyou the data of its operation during the current year:P 3,000,0007,000,000Sales (domestic)Sales (abroad)Cost of goods sold (domestic and abroad) 5,000,000t Yield from depoșit substituteExpenses on domestic operationExpenses on sales abroad400,0001,000,0002,000,000CS Scanned with CamScanner

This problem belongs to Phillipines due to the currency Peso abbriviated as…

Answered: If the value of its total assets do no…

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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Similar questions

For a corporate taxpayer, how much additional tax savings is generated by a $1,000 tax credit as compared to a $1,000 tax deduction? Correct answer should be $790
True or False Corporations are required to file a tax return annually regardless of their taxable income.
This term refers to an asset sold for more than its original value. Using taxable income, it is based on tax tables or tax rate schedules. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. This term refers to passive income offset. This term essentially includes all income subject to federal tax.
If XYZ Corporation is a shareholder of BCD Corporation, how many times will BCD's before-tax income potentially be taxed? Has Congress provided any tax relief for this result? Explain.
If an individual itemizes deductions on his or her tax return, he or she may: a. deduct the gross unreimbursed medical expenses paid for the year b. deduct the net unreimbursed medical expenses paid for the year c. deduct 80% of the gross unreimbursed medical expenses paid for the year d. deduct 80% of the net unreimbursed medical expenses paid for the year
How does the federal income tax system treat dividends receivedby a corporation versus those received by an individual?
Allowable Business Investment Losses (ABIL) can be deductible from any source of income to the taxpayer in a given tax year. Name any two sources of income that ABIL can be deducted from: _____________ and _____________.
What is the taxable income if the taxpayer had chosen itemized deduction? * D. Co. is a domestic corporation with the following data for 2002 (first year of operations): Gross profit from sales Dividend from domestic corporation Capital gain on sale of land in the Philippines held for two years (sold at P1,000,000) Capital gains on sale of shares of domestic corporation held for two months (direct sale to buyer) Business expenses Capital loss on bonds of domestic corporation held for 6 months P2,000.000 20,000 200,000 120,000 1,100,000 30,000
An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.
According to the contributions of Puerto Rico:Indicate the items of income that are part of the gross income.Indicates income exclusions.Calculate the adjusted gross income.Identifies if the taxpayer has interest income and explains what the tax treatment is in this regard.List the exemptions to which the taxpayer is entitled. Case 1: Carlos OrtizCarlos Ortiz is married and has an administrator position in a private company. Carlos' salary for this taxable year was $50,000. He received an inheritance of $80,000 and $12,000 in interest from a cooperative of which he is a member. Carlos files jointly with his wife, who is disabled and receives $12,000 in social security a year. The couple has a 15-year-old son, who is a student.
Patriot Corporation reports the following results for the current year: View the current year results. Read the requirements. Requirement a. What are Patriot's taxable income and income tax liability for the current year? Begin by computing Patriot's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Gross income Minus: Taxable income Requirements a. What are Patriot's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Patriot's short-term capital loss is $12,000 instead of $2,000? Print Done - X Current Year Results Gross profits on sales Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Operating expenses Print $ 159,000 7,000 8,000 9,000 2,000 70,000 Done X
Multiple Choice $200,933 $174,983 $208,433 $172,509

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