65,000Net income before charitable and other contributionsP1,069,000Charitable contributions:FullP10,500With Limit:ActualP50,000(1,069,000 x 5%)53,45050,000(60,500)Taxable incomeP1,008,500Tax rate25%Tax DueP252,125Less: Quarterly income tax payments65,000Tax still dueP187,125
Final tax:Interest income (5,500 x 20%)P1,100CGT (7,000 x 15%)1,0502,150Total Tax Expense:RCITP252,125FWT1,100CGT1,050P254,275Situation 51:196–D197–D198–D199–CNet income/loss per booksP50,000,000Add:Bad debts expense1,000,000Interest Expense–major stockholder4,000,000Item 4P55,000,000Less: Interest income400,000Write off600,0001,000,000Item 10P54,000,000Quarterly paymentsP9,000,000CWT1,200,000P10,200,000Situation 52:200–C201–A202–C203–B204 -CGross incomeP82,500,000Operating expenses:Salary Expense(5,500,000)Wages Expense(7,400,000)Depreciation Expense(10,500,000)Rental Expenses(15,000,000)EAR Expense:ActualP750,000Limit (147.2M x 0.5%)736,000(736,000)R&D Expense(3,500,000)Operating incomeP39,864,000Other income:Gain on sale–debt securities at FVPL1,550,000Interest income from trades receivable750,000Interest expenseP3,500,000Interest income (1,920,000 x 20%)(384,000)(3,116,000)Taxable income before contributionsP39,048,000Charitable contributions:ActualP5,000,000Limit (39,048,000 x 5%)1,952,400(1,952,400)Taxable net incomeP37,095,600Tax rate25%RCIT/Tax due9,273,900CGT:On real property (12M x 6%)P720,000On shares of stocks (1,280,000 x 15%)192,000TotalP912,000FWT (1,920,000 x 20%)P384,000RCITP9,273,900CGT912,000FWT384,000Total income tax expenseP10,569,900
Situation 53:205–C206–A207–A208–DRevenues:Rent (4,200,000 + 600,000)P4,800,000Sale (1,600,000 x 2)3,200,000P8,000,000Less: ExpensesCost of Sales (3.2M - 750k)2,450,000Salaries and Wages750,000Depreciation400,000EAR Expense*43,000Office supplies110,000Advertising expense60,000Interest expense**110,000Taxes and licenses***90,000Taxable net incomeP3,987,000Tax rate25%Tax payableP996,750Less: Tax paid616,250Tax still payableP380,500Less: Withholding tax on rent (4.8M x 5%)240,000Tax still dueP140,500*Services 48,00027,00027,000Goods16,00018,00016,000Total EAR expense43,000**Interest expense120,000Interest income (40k/80% x 20%)(10,000)Adjusted interest expense110,000***DST60,000Permits and licenses30,000Taxes and licenses90,000Situation 54:209–D210–A211–D212–AProfessional feesP50,000,000Cash prize5,500,000Gains4,000,000Total Gross incomeP59,500,000SalariesP10,000,000Rentals7,500,000EAR Expense (750k VS 50M x 1% = 500k)500,000Total deductionsP18,000,000Itemized deductions:Gross incomeP59,500,000Deductions(18,000,000)Net incomeP41,500,000OSD:Gross incomeP59,500,000OSD (40% x 59,500,000)(23,800,000)Net incomeP35,700,000
A:Itemized deductionsGross income–A4,000,000Deductible expense(2,500,000)Dividend–FC70,000Share in GPP (35.7M x 50%)17,850,000Net income19,420,0008MP2,410,00011,420,000 x 35%3,997,000Tax dueP6,407,000OSDGross incomeP6,000,000OSD (6M x 40%)(2,400,000)Share in GPP (35.7M x 50%)17,850,000Dividend–FC70,000Net income21,520,0008MP2,410,00013,520,000 x 35%4,732,000Tax dueP7,142,000Situation 55:213–A214–B215–B216–BResident CitizenGross incomeWithin [(85,000 x P50) + 1,380,000]P5,630,000Without (30,000 x P50)1,500,000P7,130,000Allowable deductions(1,175,000)Taxable net incomeP5,955,0002MP 490,0003,955,000 x 32%1,265,600Tax due1,755,600Tax credit (4,500 x P50)(225,000)Tax payable1,530,600Non-resident CitizenTaxable net income(5,630,000–587,500)P5,042,5002MP 490,0003,042,500 x 32%973,600Tax due1,463,600NRA-NETBTax payable (5,630,000 x 25%)P1,407,500Situation 56:217–B218–C219–B220–BRevenuesP20,000,000Sales to senior citizen(1,600,000)Medicines(600,000)Revenue–servicesP17,800,000Receivables–12/31/2018400,000Receivables–3/31/2019(300,000)Cash collectionsP17,900,000Rate12%Output VATP 2,148,000Sales:Goods (2,000,000 + 600,000)P 2,600,000Services17,900,000TotalP20,500,000
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Term
Summer
Professor
Jane Smith
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