Determine the income tax payable of Air Jordan Air Jordan, an international carrier doing business in the Philippines, provided the following data during the current taxable yr:Gross Receipts for a flight from Manila to Italy(Tickets sold in the Philippines)12,000,000.00Gross receipts for a flight from Manila to Germany(Tickets sold in Germany)6,000,000.00Gross Receipts for a flight from Manila to England(Tickets sold in Italy)Gross Receipts for a flight from Manila to England(Tickets sold in Philippines). The passengers were4,000,000.00transhipped in Germany to England by another airline.A flight from Manila to Germany is 9 hrs and a flight fromGermany to England is 3 hours.Operationg expenses in the Philippine Activities5,000,000.002,000,000.00Determine the income tax payable of Air Jordan

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Business

Accounting

Determine the income tax payable of Air Jordan

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Determine the income tax payable of Air Jordan

Air Jordan, an international carrier doing business in the Philippines, provided the following data during the current taxable yr:
Gross Receipts for a flight from Manila to Italy
(Tickets sold in the Philippines)
12,000,000.00
Gross receipts for a flight from Manila to Germany
(Tickets sold in Germany)
6,000,000.00
Gross Receipts for a flight from Manila to England
(Tickets sold in Italy)
Gross Receipts for a flight from Manila to England
(Tickets sold in Philippines). The passengers were
4,000,000.00
transhipped in Germany to England by another airline.
A flight from Manila to Germany is 9 hrs and a flight from
Germany to England is 3 hours.
Operationg expenses in the Philippine Activities
5,000,000.00
2,000,000.00
Determine the income tax payable of Air Jordan

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