1. Tsukuba Company, a VAT-registered business, had the following data during the quarter:Zero-rated export salesDomestic sales (tax included)P 1,815,0001,232,000Purchases of goods for export, gross of taxPurchases of goods for domestic sales, tax inclusivePurchases of supplies on domestic sales, net of tax672,000323,120124,850Assuming that the input taxes paid on purchases of goods for export are claimed as taxcredit, the VAT payable by Tsukuba Company is __.A. 10,398B. 12,895C. 84,895D. 177,895

A) 10398 Detailed explanation: Statement showing the output vat liability Please find the…

Answered: Zero-rated export sales Domestic sales…

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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[item #9]
MC Topic: Income Taxation Identify a false statement: * Capital Gains Tax is a tax imposed on the gains realized by the seller from the sale, exchange, or other disposition of certain capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. Under NIRC, the capital gains tax on the sale of domestic stocks sold directly to buyer is a final tax. Under NIRC, The capital gains tax on the sale of real property located in the Philippines and classified as capital asset is a final tax. None of the above All of the above
A resident international carrier has the following data for the current year:Gross income of P10,000,000 and expenses of P6,000,000 from the Philippines;Gross income of P5,000,000 and expenses of P1,000,000 from Hongkong.How much is the income tax payable of the corporation?
ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities subject to 12% Php 1,000,000 Sale to private entities subject to 0% 1,000,000 Sale exempt from VAT 1,000,000 Sale to government 1,000,000 The following input taxes were passed on by ABC Corp.'s VAT suppliers: Input tax on taxable goods 50,000 Input tax on zero-rated sale 30,000 Input tax on sale of exempt goods 20,000 Input tax on sale to government 40,000 Input tax on depreciable capital goods not attributable to any specific activity 40,000 Total available input tax due for the quarter is:
Parent Corporation is located in a country with an income tax rate of 40%. Subsidiary Company located in a country with an income tax rate of 25%. The best tax strategy for the enterprise would be to set the transfer prices on sales of goods from the subsidiary to the parent at a price that is a. higher than the price that would be in effect for unrelated parties in an arms length transaction. b. lower than the price that would be in effect for unrelated parties in an arms length transaction. c. equal to the price that would be in effect for unrelated parties in an arms length transaction. d. transfer prices do not affect overall tax paid.
Zinc, Inc., reports an effective tax rate in its income tax footnote of 14%. The only reconciling item with regard to the hypothetical tax at 35% is a valuation allowance reversal of negative 21%. Which of the following statements comparing Zinc, Inc.'s effective tax rate with its competitors, all of whom have an effective tax rate between 32% and 36%, is true? O a. Zinc, Inc.'s structural effective tax rate is actually quite close to its competitors. O b. Zinc, Inc., is likely to be engaged in tax shelter activities. O c. Zinc, Inc., earned more cash profits because of its lower effective tax rate. O d. Zinc, Inc., is managing its tax burden in a more efficient manner than its competitors. O e. Zinc, Inc., is likely facing bankruptcy.
Suppose a parent company wishes to determine the expected after-tax dollar cost of Rs.600 million local debt (at 16 per cent) raised by its subsidiary company S. Assuming a tax rate of 40 per cent, anticipated average annual devaluation of 3 per cent of the Indian rupee in relation to the US dollar and tax deduction of foreign, exchange losses, compute the cost of the debt.
Oracle Corp, a U.S. corporation, earns $25 million of taxable income from U.S. sources and $10 million of taxable income from foreign sources. What amount of taxable income does Oracle report on its U.S. tax return? a. $25 million. b. $35 million. c. $25 million less any tax paid on the foreign income. d. $35 million less any tax paid on U.S. income.
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Analyzing and Interpreting Income Tax FootnoteBayerische Motoren Werke AG, commonly referred to as BMW, is a German multinational company that produces automobiles and motorcycles. The company was founded in 1916 as a manufacturer of aircraft engines, which it produced from 1917 until 1918 and again from 1933 to 1945. BMW includes the following footnotes in its 2018 annual report.Taxes on income of the BMW Group comprise the following: in € million 2018 2017 Current tax expense € 2,220 € 2,558 Deferred tax expense (+)/deferred tax income (–) 355 -558 thereof relating to temporary differences 641 -502 thereof relating to tax loss carryforwards and tax credits -286 -56 Income taxes € 2,575 € 2,000 The difference between the expected tax expense based on the underlying tax rate for Germany and actual tax expense is explained in the following reconciliation: in € million 2018 2017 Profit before tax € 9,815 € 10,675 Tax rate applicable in Germany 30.8% 30.7%…
compute for the tax due and payable for Kathlyn Co.

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