I-n-c-o-m-e- -t-a-x-a-t-i-o-n- -b-a-s-e-d- -i-n- -P-h-i-l-i-p-p-i-n-e- -L-a-w-A-n-s-w-e-r- -t-h-e- -a-t-t-a-c-h-e-d- -p-i-c-t-u-r-e-,- -p-l-e-a-s-e- -a-d-d- -s-o-l-u-t-i-o-n- -i-n- -e-v-e-r-y- -p-r-o-b-l-e-m- -a-l-s-o- -i-n-d-i-c-a-t-e- -t-h-e- -r-u-l-e- -o-r- -p-r-o-v-i-s-i-o-n-s- -o-f- -l-a-w- -u-n-d-e-r- -R-e-p-u-b-l-i-c- -A-c-t- -No. 8434 Problem 4-33Rental IncomeOn March 1, 200A, Claudette leases a portionto Mark with the following terms:Advanced depositMonthly rentalAnnual insurance premium to be paid by the lesseePortion (10 mos.) of real estate tax to be paid by lesseeThe lease contract also stipulates that a 5% of Mark's net revenue will becredited to Claudette as commission. Mark's net revenue during the yearis P2,000,000.1. Claudette's 200A rent income would beP 69,000.a.b. P240,000.2. Assume that the advanced deposit is restricted, the Claudette's grossreportable taxable income would beOutrighta.P240,500b.P147,620C.P239,940d. P240,500a.b.a. P347,500.b. P307,500.P308Problem 4-34Income from Leasehold ImprovementsThe lease dated January 1, 200B provided for construction ofimprovements at the cost of the lessee, and the ownership will belong tothe lessor at the end of 5-year lease contract. The construction ofimprovements which was completed at the end of the 3rd month of thecontract amounted to P240,500. The improvement has an economic lifeof 8 years and estimated scrap value of P560. The rent income onimprovements for year 1 under each method isC.d.C.d.Spread-OutP19,672f its commercial buildingP 40,00020,0006,0003,000/yrP22,143P14,754P15,479Problem 4-35 Income from Leasehold ImprovementThe following information are available related to a 10-year lease contractwhich commenced on June 30, 200B:Cost of improvement put up by the lesseeEstimated useful life of the improvementDate completedP180,000P180,000P180,000P180,000The reportable income from leasehold improvement for year 200B isOutright MethodSpread-out MethodP247,500.P347,500.C.P207,500.d. P169,000.P 1,974P 3,750P-0-P 3,947P180,00012 yearsDecember 31, 200B

Taxable income refers to the portion of an individual's or entity's income that is subject to…

Problem 4-33 Rental Income On March 1, 200A, Claudette leases a portion of its commercial building to Mark with the following terms: Advanced deposit Monthly rental Annual insurance premium to be paid by the lessee Portion (10 mos.) of real estate tax to be paid by lessee P 40,000 20,000 6,000 3,000/yr The lease contract also stipulates that a 5% of Mark's net revenue will be credited to Claudette as commission. Mark's net revenue during the year is P2,000,000.

Problem 4-33 Rental Income On March 1, 200A, Claudette leases a portion of its commercial building to Mark with the following terms: Advanced deposit Monthly rental Annual insurance premium to be paid by the lessee Portion (10 mos.) of real estate tax to be paid by lessee P 40,000 20,000 6,000 3,000/yr The lease contract also stipulates that a 5% of Mark's net revenue will be credited to Claudette as commission. Mark's net revenue during the year is P2,000,000.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter11: Liabilities: Bonds Payable

Section: Chapter Questions

Problem 11.15EX: Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers....

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

I-n-c-o-m-e- -t-a-x-a-t-i-o-n- -b-a-s-e-d- -i-n- -P-h-i-l-i-p-p-i-n-e- -L-a-w-

A-n-s-w-e-r- -t-h-e- -a-t-t-a-c-h-e-d- -p-i-c-t-u-r-e-,- -p-l-e-a-s-e- -a-d-d- -s-o-l-u-t-i-o-n- -i-n- -e-v-e-r-y- -p-r-o-b-l-e-m- -a-l-s-o- -i-n-d-i-c-a-t-e- -t-h-e- -r-u-l-e- -o-r- -p-r-o-v-i-s-i-o-n-s- -o-f- -l-a-w- -u-n-d-e-r- -R-e-p-u-b-l-i-c- -A-c-t- -No. 8434

Problem 4-33
Rental Income
On March 1, 200A, Claudette leases a portion
to Mark with the following terms:
Advanced deposit
Monthly rental
Annual insurance premium to be paid by the lessee
Portion (10 mos.) of real estate tax to be paid by lessee
The lease contract also stipulates that a 5% of Mark's net revenue will be
credited to Claudette as commission. Mark's net revenue during the year
is P2,000,000.
1. Claudette's 200A rent income would be
P 69,000.
a.
b. P240,000.
2. Assume that the advanced deposit is restricted, the Claudette's gross
reportable taxable income would be
Outright
a.
P240,500
b.
P147,620
C.
P239,940
d. P240,500
a.
b.
a. P347,500.
b. P307,500.
P308
Problem 4-34
Income from Leasehold Improvements
The lease dated January 1, 200B provided for construction of
improvements at the cost of the lessee, and the ownership will belong to
the lessor at the end of 5-year lease contract. The construction of
improvements which was completed at the end of the 3rd month of the
contract amounted to P240,500. The improvement has an economic life
of 8 years and estimated scrap value of P560. The rent income on
improvements for year 1 under each method is
C.
d.
C.
d.
Spread-Out
P19,672
f its commercial building
P 40,000
20,000
6,000
3,000/yr
P22,143
P14,754
P15,479
Problem 4-35 Income from Leasehold Improvement
The following information are available related to a 10-year lease contract
which commenced on June 30, 200B:
Cost of improvement put up by the lessee
Estimated useful life of the improvement
Date completed
P180,000
P180,000
P180,000
P180,000
The reportable income from leasehold improvement for year 200B is
Outright Method
Spread-out Method
P247,500.
P347,500.
C.
P207,500.
d. P169,000.
P 1,974
P 3,750
P-0-
P 3,947
P180,000
12 years
December 31, 200B

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