PHILIPPINES - Income Tax A Domestic Corporation provided the following results of operations for 2020 taxable year:Sales6.200,000Salaries and wages excluding fringe benefits/de minimis350,000Cost of sales2,500,000De minimis benefits provided to rank and file70,000Dividend income from DC60,000De minimis benefits provided to managerial employees30,000Dividend income from RC30,000Fringe benefits provided to rank and file50,000Dividend income from NRC20,000Fringe benefits provided to managerial employees156,000Interest income from notes receivable75,000Taxes and licenses50,000Interest income from peso bank deposits in Manila100,000Refund of local business taxes and licenses from 201910,000Interest income from $ deposits in Taguig40,000Tax assessment on unpaid local business taxes100.000Interest income from bank deposits abroad30,000Interest expense on the tax assessment|15,000Royalty income40,000Surcharge and penalties on the tax assessment25,000Capital gain on sale at 6M of land in the Philippines held for 10 years500,000Utilities expense100,000Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years30,000Casualty losses60,000Capital loss on sale of bonds of a domestic corporation held for 1 year20,000Shrinkage on the value of short-term debt securities5,000Capital gains on sale of shares of stocks of a domestic corporation held for 6months, sold directly to a buyer15,000Depreciation expense30.000Capital gains on sale of shares of stocks of a domestic corporation held for 6months, sold thru PSE12,500Dividend declared and paid200,000Income from trust indenture with Security bank25.000Income tax paid for the first 3 quarters75.000Provision for bad debtsBad debts written off15,00020,000Recovery of bad debts written-off preceding year10,000Using itemized deductions, determine the income tax payable at the end of the year (Train law).

Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…

Answered: sing itemized deductions, determine the…

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sing itemized deductions, determine the income tax payable at the end of the year (Train law).

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

PHILIPPINES - Income Tax

A Domestic Corporation provided the following results of operations for 2020 taxable year:
Sales
6.200,000
Salaries and wages excluding fringe benefits/de minimis
350,000
Cost of sales
2,500,000
De minimis benefits provided to rank and file
70,000
Dividend income from DC
60,000
De minimis benefits provided to managerial employees
30,000
Dividend income from RC
30,000
Fringe benefits provided to rank and file
50,000
Dividend income from NRC
20,000
Fringe benefits provided to managerial employees
156,000
Interest income from notes receivable
75,000
Taxes and licenses
50,000
Interest income from peso bank deposits in Manila
100,000
Refund of local business taxes and licenses from 2019
10,000
Interest income from $ deposits in Taguig
40,000
Tax assessment on unpaid local business taxes
100.000
Interest income from bank deposits abroad
30,000
Interest expense on the tax assessment
|15,000
Royalty income
40,000
Surcharge and penalties on the tax assessment
25,000
Capital gain on sale at 6M of land in the Philippines held for 10 years
500,000
Utilities expense
100,000
Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years
30,000
Casualty losses
60,000
Capital loss on sale of bonds of a domestic corporation held for 1 year
20,000
Shrinkage on the value of short-term debt securities
5,000
Capital gains on sale of shares of stocks of a domestic corporation held for 6
months, sold directly to a buyer
15,000
Depreciation expense
30.000
Capital gains on sale of shares of stocks of a domestic corporation held for 6
months, sold thru PSE
12,500
Dividend declared and paid
200,000
Income from trust indenture with Security bank
25.000
Income tax paid for the first 3 quarters
75.000
Provision for bad debts
Bad debts written off
15,000
20,000
Recovery of bad debts written-off preceding year
10,000
Using itemized deductions, determine the income tax payable at the end of the year (Train law).

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