Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has the following financial records: Gross Sales P7,500,000 P3,000,000 P2,500,000 Cost of Sales Itemized Deductions
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- On 1, 2020, the tax asset Complex of P12,800,000 for P18,300,00 for The income recognized on 31, 2019 in at which The tax was to a of P500,000 The for the tax rent of P6,000,000 on 1, entire is tax Pro Problem 16-13 (IFRS) Complex Company reported pretax accounting inco P6,2 tax rate is 30%. Incl P450,000 and no deferred tax liability. The deferred tax asset was due to a provision of P500. Th of The other reason for the deferred tax asset was res, P1,000,000 collected in 2019 but earned only in 2020 time it was tax deductible. ta: Life insurance premiums of P200,000 were recognized o year on key officers for 2020 and 2021. ye The entity paid for a two-year casualty insurance for P6,000,000 on January 1, 2020. The entire premium is to deductible when paid. The entity collected rent from leasing some of its equipment The rent is recognized as revenue when earned but taxahla when collected. 2020 2021 3,300,000 2,500,000 Rent collected 3,500,000 3,300,000 Rent earned The entity had trading…EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required: How much is the current tax expense for the year?What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required:11. How much is the taxable income for the year?12. How much is the current tax expense for the year?13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
- EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required: 14. What is the total income tax expense for the year?15. What is the net income after tax?FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. 1. What is deductible expense if the company uses OSD? 2. Using the problem above, what is the income tax payable?EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - ₱ 36,500 • Interest income received - ₱ 80,500 • Rent received in advance - ₱ 175,000 • Dividend income - ₱ 91,700 • Estimated tax payment in the current year - ₱ 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300 • Tax penalties due to late filing on tax return - ₱ 20,000 • Corporate tax rate – 30% Required: 11. How much is the taxable income for the year? 12. How much is the current tax expense for the year? 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 14. What is the total income tax expense for the year? 15. What is the net income after tax?
- Q1. Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Now assume that C.J. opted to carryback its 2019 NOL and carryforward any unused NOL to future years. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS or the refund due from the IRS for each year. Put your answer in the table below. Show tax payable as a positive number and tax refund as a negative number. Year Tax…CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable incomeMaru Mi Company had Taxable Income amounting to P750,000 before considering the following information for taxable year 2021:P 90,000 Net Operating Loss Carry-Over P 8,000 Excess MCIT Carry-OverP 15,000 Creditable Withheld Taxes at SourceP 40,000 Quarterly Tax PaymentsP 5,000 Excess Prior Year Tax CreditsHow much is the Income Tax still payable or due?
- CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 7. Net income for the year is?FACTS / DATA / GIVEN: . Тахрауer: Taxable period: Domestic Corporation 2021 Description Gross sales Other operating income Non-operating income Cost of sales Operating expenses Non-operating expenses Amount P2,500,000 200,000 100,000 1,000,000 500,000 50.000 COMPUTE: 2021 net taxable income using ITEMIZED deductions A. 1,150,000 B. 1,200,000 О С. 1,250,000 D. 1,300,000Tamarisk Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $(84,000) 25 % 2021 (90,000) 20 % 2022 78,000 20 % 2023 57,000 20 % 2024 (132,000) 20 % 2025 95,000 25 % 2026 162,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. Tax rates were not enacted until the year of change. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Tamarisk Corporation Income Statement (Partial) $