The following data were provided by a Domestic Corporation for 2020:Taxes and licenses40,000Documentary stamp taxes2,000Other percentage taxes120,000Refund of local business taxes paid in 201910,000Income tax due for 202O300,000Refund of income tax for 201925,000Interest income:From trade notes receivable100,000From peso bank deposits120,000From bank deposits abroad20,000 Interest expense on bank loan150,000Tax assessment on underpayment of percentage taxes75,000Surcharges on tax assessments25,000Interest expense on tax assessments12,500Determine the amount of deductible tax expense for 2020. Please show your solution, thanks!AnswerSkinExit

Any interest/ surcharges on tax or any tax on assessment or income tax due shall not be allowed as…

Answered: y stamp taxes ntage taxes cal business…

Business

Accounting

y stamp taxes ntage taxes cal business taxes paid in 2019 due for 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…

A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…

Q: $14,500 56,000 7,800 1,500 3,250 750 Cash Pirate Pete, Capital Oct. 1 Net loss Oct. 2017 Owner…

A: Formula: Ending capital = Beginning capital + Owner investments - net loss - owner withdrawals

Q: nits; unit selling price $73. it of finished goods: direct materials, 2 kg at $4 per kilogram g…

A: Direct Material 2kgs $ 4.00 $ 8.00 Direct Labour 4hrs $ 11.00 $…

Q: Record all transactions in appropriate T-accounts (costs by nature), close all accounts and prepare…

A: Income Statement: An income statement is an accounting report that shows a company's net…

Q: Required information PA11-2 (Algo) Making Automation Decision (LO 11-1, 11-2, 11-3, 11-5) (The…

A: Lets understand the basics. In this question, we are required to calculate missing figures. After…

Q: Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can…

A: Limiting factors in cost accounting relate to limits in the supply of manufacturing inputs (such as…

Q: Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are…

A: Net Present Value- The net present value or net present worth applies to a sequence of cash flows…

Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…

Q: During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: Dorsey Company manufactures three products from a common input in a joint processing operation.…

A: By finding Incremental cost and Incremental profit we will determine which product should be…

Q: Sale of land $ 194,000 Purchase of treasury stock 33,000 Issuance of common stock 116,000 Payment of…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements.…

Q: Sapphire Computer Company has been purchasing carrying cases for its portable comput-ers at a…

A: Differential analysis is a decision-making approach that analyses the net effects of two…

Q: Fabienne Talent Agency has a beginning capital amounting P 1,250,000, an additional investment of P…

A: Statement of changes in equity is prepared to get closing balance of stockholders equity which will…

Q: Ryan owns 100 shares of Ajax Corporation with a basis of $6,000 and a FMV of $24,000. Ryan receives…

A: The stock is issued by the company in order to fulfill its capital requirement. The stockholders are…

Q: Nadia Company expects to have a cash balance of $44,800 on January 1, 2020. Nadia has budgeted the…

A: The cash budget is prepared to record cash receipts and cash disbursements during the period.

Q: Monaco manufacturing corp has the following account balances per ledger for the period ending…

A: The question is related to Cost Sheet for the year ended December 31st, 2019. The Cost Sheet or…

Q: + 10 Primary income (investment income earned abroad) 72 Imports of goods and services 98 Augusta…

A: Capital account indicates a country's balance of payments. Over the course of a year, the capital…

Q: Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at…

A: Date Account Titles and Explanation Debit Credit 2020Jan . 10 Cash Dividends - Preferred…

Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…

A: In the context of the given question, we are required to compute the total gross profit realized…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $30,250. The…

A: Depreciation is an accounting strategy that spreads the cost of a tangible or physical thing over…

Q: One day, the company chooses to buy their new accounting information system (AIS), and decide which…

A: Accounting Information System is the system of various program or functions for accounting. It…

Q: ing these mechanisms at full capacity are as follows. Variable costs per unit:…

A: Introduction : Incremental cost means the variable cost which increases with the increase in the…

Q: Lapiz, Capital 3,000 P30,000 Total Profit and loss ratio is 3:2:1 for Azure, Sapphire, and Lapiz-…

A: To determine the Cash Received at the time of liquidation which is consider the factors of the whole…

Q: Unfavorable materials quantity variances may be partially explained by favorable materials price…

A: Lets understand the basics. Material quantity variance indicates the variance between the standard…

Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?

A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…

Q: Question 2 Sualihu Ltd had the following selected transactions: 1. Sualihu Ltd invested AED4,000 in…

A: Effect on accounting Equation... 1.Sualihu Ltd invested AED 4000 in the business in exchange for…

Q: The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next…

A: Cash Budget is the estimations of the cash inflows and outflows during a specific period. It is very…

Q: Haver Company currently pays an outside supplier $19 per unit for a part for one of its products.…

A: The question is based on the concept of Cost Management. When any method or project is to be…

Q: Question 7: Hamilton, Inc. prepared the following payroll summary for the current month: Total…

A: Payroll Register: Each pay period and pay day is recorded in a payroll register, which contains…

Q: In the third quarter of 2019, a taxpayer engaged in the sale of services whose annual gross receipts…

A: Here discuss about the percentage of taxes and Value added taxes and its restriction in the total…

Q: On December 31, the stockholders' equity section of the balance sheet of Monk Associates reflected…

A: Source of raising funds includes: Issue of common stock Issue of debts securities i.e. Bonds,…

Q: The funds of a county government report the following noncurrent asset acquisitions during the year:…

A: Under statement of net position, there are two column to report asset, one is the governmental…

Q: DATE PARTICULARS DEBIT CREDIT P 200,000 40,000 Dec-01 Cash Equipment Candelaria Maugat, Capital To…

A: Journal Entries are posted into T-accounts. The balance of T-accounts are presented in the trial…

Q: 5. On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a…

Q: On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary…

A: Share Option For the employees share option which can be prevailed for retain the employees into the…

Q: Use the following to answer questions 23 - 26 J.T Corporation was organized on January 3, 20XE. The…

A: The additional paid in capital is the excess value of capital received from shareholders as compared…

Q: n asset that is book-depreciated over a 5-year period by the straight line method has C3 = P…

A: Under straight Line method, same amount of depreciation is charged on the Asset in each of the years…

Q: Problem 25-4 (IAA) Molave Company had the following outstanding loans during 2020 and 2021. Specific…

A: Lets understand the basics. As per IAS 23 "Borrowing cost", borrowing cost incurred to acquire,…

Q: On January 1, 20x2, Penn Co (parent purchased 90% of the outstanding common shares of Senn Co.…

A: A journal entry is used to document a business transaction in a company's accounting records. A…

Q: Sales revenue is $ 500000 , Variable costs are 30 % of sales revenue and fixed costs are $ 200000 ,…

A: Formula: Net income = Revenues - Expenses.

Q: A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All…

A: Lets understand the basics. When there is choice of whether eliminating any product line then there…

Q: Instructions: ldentify each of the following accounts as an asset, Liability or Equity. ACCOUNTS…

A: An equity is residual interest in net assets of the organization.

Q: Machinery Purchased for 5 so0000 Accumulated depreciation value is 5 LO0OI0 Salá for $ 400000…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes…

A: The budget is prepared to record variable and fixed cost at different level of production.

Q: CD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: A journal entry is used to document a business deal in a company's accounting records. A journal…

Q: An industrial air conditioner with an expected useful operating life of 30.000 hours costs $45,000.…

A: Formula: Depreciation per hour = ( Asset cost - Salvage value ) / Estimated Operating hours

Q: May Made cash sales of $6,300; the cost of the inventory was $3,700. 1 Purchased $2,000 of inventory…

A: Introduction: Journals: Another name for journals also called as Book of prime entries. Journals…

Q: Kapoor Bhd issued 4 percent debentures with a nominal value of RM40,000,000 on 1 January x1. The…

A: Debenture- A debenture is a marketable security (a type of investment) issued by a company or other…

Q: Schwert Corp. shows the following information on its 2015 income statement: Particulars ($) Sales…

Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…

A: The question is based on the concept of Financial Management.

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

100%

The following data were provided by a Domestic Corporation for 2020:
Taxes and licenses
40,000
Documentary stamp taxes
2,000
Other percentage taxes
120,000
Refund of local business taxes paid in 2019
10,000
Income tax due for 202O
300,000
Refund of income tax for 2019
25,000
Interest income:
From trade notes receivable
100,000
From peso bank deposits
120,000
From bank deposits abroad
20,000

Interest expense on bank loan
150,000
Tax assessment on underpayment of percentage taxes
75,000
Surcharges on tax assessments
25,000
Interest expense on tax assessments
12,500
Determine the amount of deductible tax expense for 2020. Please show your solution, thanks!
Answer
Skin
Exit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A.M.I. Corporation reported income taxes of $362,884,000 on its 2022 income statement. Its balance sheet reported income taxes payable of $279,289,000 at December 31, 2021, and $518,663,000 at December 31, 2022. What amount of cash payments were made for income taxes during 2022? Cash payment for income taxes = ? I tried 2022 Income Statement + 2021 Balance Sheet - 2022 Balance sheet. What is the correct formula to calculate?
A domestic corporation started its operations in year 2008. The following data on income taxes during the years 2012 to 2019 were made available: YEAR RCIT MCIT 2012 25,000 100,000 2013 100,000 150,000 2014 300,000 190,000 2015 250,000 300,000 2016 100,000 50.000 2017 70,000 50.000 2018 5.000 40.000 2019 85,000 60,000 How much is the income tax payable for the year 2018 and 2019, respectively? O 50,000 : 70.000 O 40,000 ; 85,000 O 40,000: 50,000 O None of the choices
Red Velvet Corporation, a domestic corporation has the following data. 2021 2022 Gross Income 3,500,000.00 2,400,000.00 Taxable Income 125,000.00 500,000.00 The income tax payable for 2021 is 31,250 40,000 35,000 37,500
How much is the total gross income subject to regular income tax if a domestic corporation reported the following income in 2019? Philippines Abroad P400,000 40,000 80,000 Service fee Interest income - bank P300,000 70,000 30,000 Royalties -franchise
The following tax expenses related to business were paid by Palmyra Trading in 2022:Business taxes, other than VAT, P20,000Documentary stamp taxes, P1,000Automobile registration fees, P3,000Import duty taxes, P50,000Postage stamp taxes, P500Stock transaction tax, P2,500Income tax, P600,000Value-added tax, P240,000Donor’s tax, P8,000How much is the amount of taxes deductible from gross income? a. P73,500 b. P73,000 c. P74,500 d. P76,000
Kingbird, Inc. reported income taxes of $421,800,000 on its 2022 income statement and income taxes payable of $315,780,000 at December 31, 2022, and $601,920,000 at December 31, 2022. What amount of cash payments were made for income taxes during 2022? Cash payment for income taxes $
The following were taken from the statement of comprehensive income of a Resident Foreign Corporation for 2021: Sales P2,500,000 Cost of sales 1,500,000 Operating expenses (excluding bad debts) 500,000 Rental income (including P50,000 security deposit) 300,000 Provision for bad debts 50,000 Provision for income tax 75,000 Additional information: Accounts written off during the year P60,000 2021 recoveries on accounts receivable written off in 2020 (only P10,000 were recognized by the BIR as 20,000 reduction for 2020 income) Refunds for various local taxes paid in 2020 (50% of the amount recovered were recognized by the BIR as a 30,000 reduction for 2020 income) Refunds for overpayment of 2020 income tax 25,000 Refund of special assessment 12,000 Total assets 4,000,000 Compute the regular income tax
The following are the revenue items in the Income Statement of a domestic corporation for the year 2021:Interest income from bank deposit, Philippines, P40,000Yield from deposit substitute, Philippines, P80,000Interest income received from a depositary bank under EFCDS, Philippines, P60,000Interest income from bank deposit, USA, P400,000Interest on trade notes receivable, Philippines, P30,000Advance rent for 2 years, Philippines, P600,000Royalties, Philippines, P100,000Royalties, USA, P300,000Dividend received from domestic corporation, P150,000Dividend received from a foreign corporation, P350,000Prizes and winnings, Philippines, P400,000Refund of Philippine value-added tax, P100,000How much is the total final withholding taxes on passive income?
Delta has interest receivable which has a carrying amount of $75,000 in its statement of financial position at 31 December 2020. The related interest revenue will be taxed on a cash basis in 2021. Delta has trade receivables that have a carrying amount of $105,000 in its statement of financial position at 31 December 2020. The related revenue has been included in its statement of profit or loss for the year to 31 December 2020. Required: According to HKAS 12 ‘Income Taxes’, what is the total tax base of interest receivable and trade receivables for Delta at 31 December 2020? A. $105,000 B. $75,000 C. Nil D. $180,000
Reported income taxes on its recently ended year (2021), income statement. Its balance sheet reported an amount of income taxes payable at end of the previous year (2020), and a greater amount (Increase) for the recently ended year (2021)How do you calculate what amount of cash payments were made for income taxes during the recently ended year (2021)?
A resident corporation has the following data on income and expenses in 2018: Gross sales ₱ 935,000 Sales returns and allowances 25,000 Sales discounts 10,000 Interest income on trade notes receivable 15,000 Cost of sales 400,000 Operating expenses with receipts 215,000 Operating expenses without receipts 200,000 How much is the taxable income using itemized deduction? a. ₱100,000 b. ₱300,000 c. ₱309,000 d. ₱349,000 ANSWER:
Harper Company began operations at the beginning of 2021. The following information pertains to this company. 1. Pretax financial income:2021 $ 850,0002022 1,250,0002023 2,875,0002. The tax rate enacted for 2021 is 20%.3. Differences between the 2021 income statement and tax return are listed below: (a) Interest revenue earned on an investment in tax-exempt municipal bonds amounts to $3,000 in 2021, $1,500 in 2022, and $2,000 in 2023.(b) Revenue in 2023 on a construction contract is $800,000 for tax purposes. For financial statement purposes, revenue will amount to $100,000 in 2021, $300,000 in 2022, and the remainder in 2023. This is Harper’s only construction contract during 2021-2023.(c) Depreciation of equipment for financial reporting purposes is calculated using the straight-line method. Harper purchased equipment on January 1, 2022 at a cost of $50,000. The equipment has a life of 5 years and a $5,000 salvage value. Depreciation of the equipment for the tax return will be based…