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- A Corp., a domestic corporation, has the following data in 2022:Gross receipts from services, P800,000Cost of services, P200,000Long term capital gain, P15,000Short term capital loss, P5,000Dividend from a domestic corporation, P15,000Interest income from bank deposits, P10,000Operating expenses, P120,000Compute the optional standard deduction. a. P366,000 b. P364,500 c. P280,000 d. P244,000XYW Corp., a Domestic Corporation, registered in 2010 made available the following financial information for taxable year 2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law Choices: Php 800,000 Php 2,100,000 Php 400,000 Php 0EB Corporation, a C corporation, has a net short-term capital gain Of $ 65k and a net long-term capital loss of $250k during 2023. EB Corporation had taxable income from other sources of $720k Prior years' transactions included the following: 2019 2020 2021 2022 NET LTCG: $150K NET STCG: 560K NET STCG: $45K NET LTCG: $35K Compute the treatment of EB's capital gain or loss if any
- During 2020, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract Percentage-of-Completion2018 ₱ 475,000 ₱ 700,0002019 625,000 950,0002020 700,000 1,050,000Total ₱1,800,000 ₱2,700,000 Assuming an income tax rate of 40% for all years, the effect of this accounting change on prior periods should be reported by a credit ofa. ₱540,000 on the 2020 income statement.b. ₱330,000 on the 2020 income statement.c. ₱540,000 on the 2020 retained earnings statement.d. ₱330,000 on the 2020 retained earnings statement.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…STAR Corporation, a domestic corporation, had the following data: YEAR GROSS INCOME DEDUCTIONS 2016 Php 1,000,000 Php 1,200,000 2017 2,000,000 1,900,000 2018 3,000,000 2,950,000 2019 1,000,000 1,100,000 2020 980,000 500,000 The taxable income in 2020 is:
- ABC Corp., a DC, registered in 2010 made available the following financial information for TY2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales - Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE LawABC Corp., a DC, registered in 2010 made available the following financial information for TY2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law Group of answer choices Php 400,000 Php 2,100,000 Php 0 Php 800,000At the beginning of 2024, a construction company that began operations in 2022 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: 2022 2023 2024 Completed-Contract $565000 725000 800000 $2090000 Percentage-of-Completion $1010000 1050000 1150000 $3210000 The company reports two years of comparative statements. Assuming an income tax rate of 20% for all years, the effect of this accounting change on prior periods after taxes should be reported by a credit of O $616000 on the 2024 income statement. O $356000 on the 2023 retained earnings statement. O $896000 on the 2023 income statement. O $896000 on the 2024 retained earnings statement.
- The accounting income (loss) figures for Flounder Corporation are as follows: 2018 $162,000 2019 246,000 2020 84,000 2021 (162,000) 2022 (385,000) 2023 140,000 2024 156,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2018 and 2019, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Flounder uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit…In 2021 XY corporation is subject to MCIT has the following records Sales: net of discounts and allowances php 9,500,000 cost of sales php 5,000,000 gain on sale of building php 150,000 allowable deductions php 4,420,000 Compute the income tax payable of XYZ Corporation P46,000 P46,500 P76,000 P95,000Urgency Medical Centre Inc. (UMC), a publicly traded entity, began operations in 2015and reports according to IFRS. Relevant information related to UMC’s 2020 financial results are as follows: Statement of comprehensive incomeFor the year ended December 31, 2020Revenue $50,000,000Expenses 38,000,000Income from continuing operations before taxes 12,000,000Income tax expense (30%) (3,600,000)Net income $ 8,400,000Additional information: • At January 1, 2020, UMC had 2,000,000 common shares outstanding and 10,000 $2 cumulative preference shares outstanding.• On January 2, 2020, UMC issued 6,000 cumulative preference shares at $100 per share, entitling the shareholder to dividends of $3 per share per year. At the option of the holder, each preference share can be converted into two common shares at any time after July 1, 2021.• On July 1, 2020, UMC declared a two-for-one stock split on common shares.• On August 1, 2020, UMC issued 10,000 common shares for $15 each.• As part of the purchase…