XYZ Corporation, a closely held domestic corporation, has unappropriated retained earnings in excess of its paid-up capital stock amounting to P20,000,000 and P50,000,000 as of the fiscal years ending June 30, 2020 and June 30, 2021, respectively. How much improperly accumulated earnings tax may the government collect should they subject XYZ to the same?
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XYZ Corporation, a closely held domestic corporation, has unappropriated
retained earnings in excess of its paid-up capital stock amounting to
P20,000,000 and P50,000,000 as of the fiscal years ending June 30, 2020 and
June 30, 2021, respectively. How much improperly
the government collect should they subject XYZ to the same?
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- Which of the following statements is incorrect? Some corporations can use the cash-basis of accounting. Corporations that own foreign subsidiaries cannot file a Form 1120. A corporation can choose a fiscal year-end of its choice when filing its first tax return. A calendar year corporate tax return is due 3½ months after the end of the fiscal yearWhich of the following statements is false? A. A corporation must file a Federal income tax return even if it has no taxable income for the year. B. Dividend received deduction is calculated as the dividend received times deduction percentage. C. A corporation cannot deduct net capital losses against its operating income. D. A C corporation with taxable income of $100,000 in the current year will have a tax liability of $21,000. E. Schedule M-1 is used to reconcile net income as computed for financial accounting purposes with taxable income reported on the corporation's income tax return.11. Jan Stephanie Corporation filed its income tax return for calendar year 2022 and paid on time its income tax amounting to P100,000. Upon verification of its accounting records, it was disclosed that its deduction did not meet all the statutory requisites for deductibility. The corporation was duly notified of the said discrepancy through a Preliminary Assessment Notice (PAN). The income tax due after investigation amounts to P170,000. Failing to protest on time against the PAN, a formal letter of demand and assessment notice was issued on May 31, 2024, requiring payment of the assessment not later than July 15, 2024. How much amount is due on July 15, 2024? 12. Denmark Torralba did not file his income tax return for the calendar year 2022 which was due for filing on April 15, 2023. He was notified by the BIR of his failure to file the tax return, for which reason, he filed his tax return and paid the tax only after the said notice on July 15, 2024. Excluding compromise penalties,…
- Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 2021. On June 6, 2022, it filed an income tax return with a basic tax still due and payable for the fiscal year amounting to P500,000. Compute the interest penalty to be imposed by the BIR. P28,603 P45,873 P28,438 P46,207Which of the following statements is/are correct? A. A minimum corporate income tax (MCIT) of 1% of gross income from July 1, 2020 to June 2023 and 2% beginning July 1, 2023 is imposed upon any domestic corporation and resident foreign corporation beginning on the 4th taxable year immediately following the taxable year in which such corporation commenced its business operations. B. MCIT shall be imposed whenever such corporation has zero or negative taxable income, or when the amount of MCIT is greater than the normal income tax due from such corporation. C. The computation and the payment of the MCIT, shall likewise apply at the time of filing the quarterly corporate income tax. A. I only B. II only C. I and III only D. I, II and IIIHoward Company, which began operations on January 1, 2020, has elected to use the cash basis accounting for tax purposes and accrual basis for the financial statements. The entity reported sales of P3,500,000 and P1,600,000 in the tax returns for the years ended December 31, 2021 and 2020 respectively. The entity reported accounts receivable of P300,000 and P500,000 on December 31, 2021 and 2020, respectively. What amount should be reported as sales in the Income Statement for 2021?A. 4,100,000B. 3,700,000C. 3,100,000D. 4,700,000
- Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 2021. On June 6, 2022, it filed an income tax return with a basic tax still due and payable for the fiscal year amounting to P500,000. Compute the total tax assessment to be paid, excluding compromise penalty. P653,603 P689,275 P653,438 P660,87330. Which of the following statements is CORRECT in regard to compensation expense paid to non-shareholders for an accrual-basis corporation? O The corporation may not deduct an excess of $1 million per employee per tax year If the compensation amount is considered excessive, it may be reclassified as a dividend. O The corporation may deduct all amounts earned by the employees in the current taxable year as long as it is paid within two and one-half months after the taxable year-end. 31. Which one of the following statements describes the bad-debt deduction for a corporation? O The deduction allowed for a specific bad debt is equal to its fair market value Corporations are allowed a deduction for partial worthlessness of bad debts, but only to the extent the debt has been charged off. O if a receivable is not collected by a cash-method corporation, a bad-debt deduction is allowed. 32 Which one of the following statements concerning taxes reported on Form 1120 is CORRECT? O Federal…46. Black Company which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the years ended December 31, 2019 and 2018,respectively. The entity reported accounts receivable of P300,000 and P500,000 in the statement of financial position on December 31, 2019 ad 2018. respectively. What amount should be reported as aisles in the income statement for the year ended December 31, 2019? а. 1,450,000 b. 1,550,000 c. 1,950,000 d. 2,050,000
- Egolf Corporation failed to include $300,000 of taxable interest income on its 2021 calendar year Form 1120. The gross income reported on the return was $4.7 million, and the return was filed on February 20, 2022. Required: a. What is the last day on which the IRS may assess additional tax for Egolf's 2021 taxable year? b. Assume Egolf only reported $1 million in gross income on its 2021 calendar year return. What is the last date on which the IRS may assess additional tax for 2021? Complete this question by entering your answers in the tabs below. Required A Required B What is the last day on which the IRS may assess additional tax for Egolf's 2021 taxable year? Due date for assessment of additional tax isHow much is the deferred tax liability at December 31,2019 and the total income tax expense, respectively? A. P 33,000 and P 1,352,500 B. P 30,000 and P 372,690 C. P 30,000 and P 1,352,500 D. P 33,000 and P 372,690Which of the following statements is true of corporations in 2021? Select one: a. Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation. b. A corporation may deduct organizational expenditures as they are incurred. c. If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss d. Income of all corporations is taxed in the same way that income of partnerships is taxed.