A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales Cost of sales Dividend income from DC Dividend income from RC 6,200,000 Salaries and wages excluding fringe benefits/de minimis 2,500,000 De minimis benefits provided to rank and file 60,000 30,000 350,000 70,000 De minimis benefits provided to managerial employees Fringe benefits provided to rank and file 30,000 50,000 Dividend income from NRC 20,000 Interest income from notes receivable 75,000 Fringe benefits provided to managerial employees Taxes and licenses 156,000 50,000 Interest income from peso bank deposits in Manila 100,000 Interest income from $ deposits in Taguig Interest income from bank deposits abroad 40,000 30,000 Refund of local business taxes and licenses from 2019 Tax assessment on unpaid local business taxes Interest expense on the tax assessment 10,000 100,000 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 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 500,000 Utilities expense 100,000 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 year 20,000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer 15,000 Shrinkage on the value of short-term debt securities Depreciation expense 5,000 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 Provision for bad debts 25,000 15,000 Income tax paid for the first 3 quarters 75,000 Bad debts written off 20,000 Recovery of bad debts written-off preceding year 10,000 Using optional standard deductions, determine the income tax payable at the end of the year (Train law).
A Domestic Corporation provided the following results of operations for 2020 taxable year: Sales Cost of sales Dividend income from DC Dividend income from RC 6,200,000 Salaries and wages excluding fringe benefits/de minimis 2,500,000 De minimis benefits provided to rank and file 60,000 30,000 350,000 70,000 De minimis benefits provided to managerial employees Fringe benefits provided to rank and file 30,000 50,000 Dividend income from NRC 20,000 Interest income from notes receivable 75,000 Fringe benefits provided to managerial employees Taxes and licenses 156,000 50,000 Interest income from peso bank deposits in Manila 100,000 Interest income from $ deposits in Taguig Interest income from bank deposits abroad 40,000 30,000 Refund of local business taxes and licenses from 2019 Tax assessment on unpaid local business taxes Interest expense on the tax assessment 10,000 100,000 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 Capital gain in sale of a 10-year bonds of a domestic corporation held for 8 years 500,000 Utilities expense 100,000 30,000 Casualty losses 60,000 Capital loss on sale of bonds of a domestic corporation held for 1 year 20,000 Capital gains on sale of shares of stocks of a domestic corporation held for 6 months, sold directly to a buyer 15,000 Shrinkage on the value of short-term debt securities Depreciation expense 5,000 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 Provision for bad debts 25,000 15,000 Income tax paid for the first 3 quarters 75,000 Bad debts written off 20,000 Recovery of bad debts written-off preceding year 10,000 Using optional standard deductions, determine the income tax payable at the end of the year (Train law).
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 23P
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Question
PHILIPPINES -
Transcribed Image Text: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
Fringe benefits provided to rank and file
Fringe benefits provided to managerial employees
Dividend income from RC
30,000
50,000
Dividend income from NRC
20,000
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
15,000
Bad debts written off
20,000
Recovery of bad debts written-off preceding year
10,000
Using optional standard deductions, determine the income tax payable at the end of the year (Train law).
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