How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022)
Over
But not over The Tax shall be
Plus
Of Excess Over
250,000
250,000
400,000
20%
250,000
400,000
800,000
30,000
25%
400,000
800,000
2,000,000
130,000
30%
800,000
2,000,000 8,000,000
490,000
32%
2,000,000
8,000,000
2,410,000
35%
8,000,000
Transcribed Image Text:GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The Tax shall be Plus Of Excess Over 250,000 250,000 400,000 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000
A taxpayer registered in 2010 made available the following financial information for TY2021:
Balance Sheet:
Asset - Php 50,000,000
Liability - Php 30,000,000
Stockholders' Equity - Php 20,000,000
Income Statement:
Gross sales - Php 10,000,000
Cost of sales – Php 6,000,000
Operating Expenses - Php 5,900,000
How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?
Choices
Php 120,000
Php 40,000
Php 0
Php 80,000
Transcribed Image Text:A taxpayer registered in 2010 made available the following financial information for TY2021: Balance Sheet: Asset - Php 50,000,000 Liability - Php 30,000,000 Stockholders' Equity - Php 20,000,000 Income Statement: Gross sales - Php 10,000,000 Cost of sales – Php 6,000,000 Operating Expenses - Php 5,900,000 How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation? Choices Php 120,000 Php 40,000 Php 0 Php 80,000
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