question archive Problem solving items 1 to 6 are based on the following information: ABC, a domestic corporation, has been assessed as retaining earning beyond reasonable needs of the business for the taxable year 2020, and is now subject to the improperly accumulated earnings tax
Problem solving items 1 to 6 are based on the following information: ABC, a domestic corporation, has been assessed as retaining earning beyond reasonable needs of the business for the taxable year 2020, and is now subject to the improperly accumulated earnings tax
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Problem solving items 1 to 6 are based on the following information:
ABC, a domestic corporation, has been assessed as retaining earning beyond reasonable needs of the business for the taxable year 2020, and is now subject to the improperly accumulated earnings tax. The records of the corporation show:
Gross Sales P10,000,000
Sales Returns and Allowances 200,000
Sales Discount 400,000
Cost of Goods Sold 2,200,000
Allowable Deductions 3,400,000
Interest Income
From PNB, foreign currency 700,000
On notes receivable 100,000
From BDO, checking account 200,000
Royalties 300,000
Dividend received
From DEF, a domestic corporation 200,000
From KLM, a foreign corporation 100,000
Capital Gain on Shares:
Sale of GHI Corporation shares, a domestic corporation, to a direct buyer 150,000
Capital Gain on sale of land:
Net capital gain, located in Makati 500,000
Selling price of land located in Makati 4,000,000
Fair Market Value 5,000,000
Dividend paid by ABC to its stockholders 800,000
Amount retained for the business expansion 1,000,000
- What is taxable income for 2020?
- What is the Minimum corporate income tax?
- If the corporation, opts that the basis of their tax is their gross income, the income tax due is?
- What is the improperly accumulated earnings tax?
- What is the capital gains tax?
- What is the tax witheld?
