Scribd Logo
Upload

Welcome to Scribd!

    • 58 views

    Problem 1

    Uploaded by

    Shiene Medriano
    Mrs. Rowena Gorospe reports various items of income and expenses for tax year 2021. Her taxable income subject to regular income tax amounts to P274,000. This was calculated by taking her total compensation of P352,000 plus business income of P150,000 and bad debt recovered of P22,000. For Domestic Corporation's tax year 2021, P250,000 was totally exempted/excluded from gross income, consisting of a P150,000 cash dividend from a domestic corporation and a P100,000 Philippine VAT refund. The total gross income subject to the 25% corporate income tax rate was P2,650,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Problem 1

    Uploaded by

    Shiene Medriano
    58 views3 pages
    Mrs. Rowena Gorospe reports various items of income and expenses for tax year 2021. Her taxable income subject to regular income tax amounts to P274,000. This was calculated by taking her total compensation of P352,000 plus business income of P150,000 and bad debt recovered of P22,000. For Domestic Corporation's tax year 2021, P250,000 was totally exempted/excluded from gross income, consisting of a P150,000 cash dividend from a domestic corporation and a P100,000 Philippine VAT refund. The total gross income subject to the 25% corporate income tax rate was P2,650,000.

    Original Description:

    taxation

    Original Title

    PROBLEM 1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Mrs. Rowena Gorospe reports various items of income and expenses for tax year 2021. Her taxable income subject to regular income tax amounts to P274,000. This was calculated by taking her total compensation of P352,000 plus business income of P150,000 and bad debt recovered of P22,000. For Domestic Corporation's tax year 2021, P250,000 was totally exempted/excluded from gross income, consisting of a P150,000 cash dividend from a domestic corporation and a P100,000 Philippine VAT refund. The total gross income subject to the 25% corporate income tax rate was P2,650,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views3 pages

    Problem 1

    Uploaded by

    Shiene Medriano
    Mrs. Rowena Gorospe reports various items of income and expenses for tax year 2021. Her taxable income subject to regular income tax amounts to P274,000. This was calculated by taking her total compensation of P352,000 plus business income of P150,000 and bad debt recovered of P22,000. For Domestic Corporation's tax year 2021, P250,000 was totally exempted/excluded from gross income, consisting of a P150,000 cash dividend from a domestic corporation and a P100,000 Philippine VAT refund. The total gross income subject to the 25% corporate income tax rate was P2,650,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    PROBLEM 1

    Mrs. Rowena Gorospe, a resident citizen, reports the following items of income and expenses
    as of December 31, 2021:
    Cash salary, net of withholding tax, P25,000 and SSS, P3,000 - P302,000
    Dividend from San Magnolia Corporation - P30,000
    Cancellation of her debt from San Magnolia Corporation - P50,000
    Living quarters and meals allowances, within the employer’s premises - P40,000
    Income tax paid by the employer - P5,000
    One year note receivable from the employer, net of discount P1,000 (maturity June 30, 200B) -
    P19,000
    Gross income from business - P400,000
    Allowable expenses - P250,000
    Prepaid rent income - P50,000
    Interest from bank deposit, net of withholding tax -  P18,000
    Bad debt recovery (60% previously written-off) - P38,000
    Gambling winnings - P20,000
    Gambling losses - P30,000
    Income tax refund - P8,000
    Household expenses - P200,000
    Donation from relatives - P150,000
    Winnings - P10,000
    Stock dividends from Asia Brewery at fair market value - P4,000
    Compute the taxable income subject to the regular income tax.
    Salary P25,000+ P302,000) 327,000
    Income tax paid by the employer 5,000
    Note receivable 20,000

    Total compensation 352,000


    Business gross income 400,000

    Allowable expenses (250,000)


    150,000
    Prepaid rent income 50,000
    Bad debts recovered previously written- off (P38,000 *60%) 22,000
    Taxable income subject to tabular tax 274,000
    PROBLEM 2
    The following are the revenue items in the income statement of Domestic Corporation for the
    year 2021:
    Sales - P1,000,000
    Cost of sales - P500,000
    Interest income from bank deposit, Philippines - P40,000
    Yield from deposit substitute, Philippines - P80,000
    Interest income received from depository bank under EFCDS, Philippines - P60,000
    Interest income from bank deposit, USA - P400,000
    Interest on notes receivable- trade, Philippines -  P30,000
    Royalties, Philippines - P70,000
    Royalties, USA - P300,000
    Cash dividend received from domestic corporation - P150,000
    Prize and winnings, Philippines - P400,000
    Refund of Philippine value added tax - P100,000
    Bad debt recovery (tax benefit rule) - P50,000
    Required:

    1. How much was total exempted/excluded from gross income?

    Cash dividend received from domestic 150,000


    corporation

    Refund of Philippine value added tax 100,000

    Total 250,000

    2. How much was the total gross income subject to 25% corporate income tax?
    Sales P 1,000,000
    Less: Cost of sales (500,000)
    Gross income P 500,000
    Other income
    Gain from sale of an office equipment 20,000
    Interest income from bank deposit, USA 400,000
    Interest on trade notes receivable, Philippines 30,000
    Advance rent for two (2) years, Philippines 600,000
    Royalties, USA 300,000
    Dividend received from a foreign corporation 350,000
    Prizes and winnings, Philippines 400,000
    Bad debt recovery 50,000
    Total gross income: P 2,650,000

    You might also like