CHAPT-12 INCOME TAX - CORPORATIONS

CHAPT-12 INCOME TAX - CORPORATIONS - 84 INCOME TAXATION 5TH...

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SUGGESTED ANSWERS Chapter 12: Income Tax of Corporations CHAPTER 12 INCOME TAX OF CORPORATIONS Problem  12  – 1  TRUE OR FALSE 1. True 2. True 3. False  – Only  domestic  corporations  are  to be  taxed  for income  within  and  without. 4. True 5. False  – 30%  normal  tax  effective  2009. 6. True 7. True 8. True 9. True 10. False  – Not taxable  because  the  corporation  is a foreign  corporation / 11. False  – 30%. 12. False  – applicable  only  to resident  Offshore  Banking  Unit  on  gross  receipts  of OBU. 13. False  – final  tax  of 10% Problem  12  – 2  TRUE OR FALSE 1. False  – If the  unrelated  income  of the  proprietory  educational  institution  exceeds  the   related  income,  the  income  tax  rate  applicable  would  be  the  corporate  income  tax  of  35%. 2. False  – Sale  of real  property  outside  the  Philippines  by a resident  foreign  corporation  is   not  subject  to tax  in the  Philippines. 3. False  – 10%  based  on  gross  income  within 4. True 5. True 6. False  – In general,  GOCCs  are  subject  to corporate  income  tax. 7. True 8. True 9. True 10. True 11. True 12. True Problem  12  – 3   Problem  12  – 4   1.  A 1.  C or D 2.  D 2.  B 3.  D 3.  D 4.  B 4.  A 5.  A 5.  C 6.  D 7.  D 7.  B 8.  C 8.  Not in  the  choices  = normal  tax  of 30% 9.  A 9.  Not in  the  choices  = normal  tax  of 30% 10.  A 10.  B 11.  D 11.  B 12.  B 12.  C 13.  A Problem  12  – 5 1. D Taxable   income Income  tax   due Gross  income  (P8,000,000  + P4,000,000) P12,000,000 Business  expenses  (P5,000,000  + P3,000,000)    8,000,000 Net  taxable  income P4,000,000 Corporate  income  tax  (P4,000,000  x 30%) P1,200,000 Note:  The  land  sold  is a capital  asset.  Hence,  not  subject to corporate  income  tax  but  for final  tax  of 6%  based  on   sales  price  or zonal  value,  whichever  is higher. 2. C Gross  income   P8,000,000 Business  expenses      5,000,000 84
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SUGGESTED ANSWERS Chapter 12: Income Tax of Corporations Net  taxable  income P3,000,000 Corporate  income  tax  (P3,000,000  x 30%) P900,000 Note:  The  land  sold  is a capital  asset.  Hence,  not  subject to corporate  income  tax  but  for final  tax  of 6%  based  on   sales  price  or zonal  value,  whichever  is higher. Problem  12  – 6 B Gross  income  within P2,800,000 Less:  Deductions  within   1,300,000 Net  taxable  income P1,500,000 Multiplied  by normal  corporate  tax  rate           30% Income  tax  due P   450,000 Problem  12  – 7 D Gross  income  within P5,000,000 Multiplied  by normal  corporate  tax  rate           30% Income  tax  due P1,500,000 Problem  12  – 8 1. Domestic  corporation Gross  income  – within  and  without        (P450,000  + P180,000  + P75,000  + P160,000) P865,000 Deductions  – within  and  without      (P290,000  + P80,000  + P25,000  + P100,000) (495,000)
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This note was uploaded on 01/03/2012 for the course ACC 284 taught by Professor Sevton during the Spring '11 term at Abraham Baldwin Agricultural College.

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CHAPT-12 INCOME TAX - CORPORATIONS - 84 INCOME TAXATION 5TH...

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