question archive The record of a closely-held domestic corporation show the following data for 2014: Gross income 1,500,000 Business Expenses 600,000 Gain on sale of business asset 60,000 Interest on deposits with Metrobank, net of tax 5,000 Sale of shares of stock, not listed: Selling Price 150,000 Cost 115,000 Dividends from Victory Corporation, domestic 35,000 Dividends paid during the year 120,000 Reserved fro building acquisition 300,000 In 2013, the Corporation suffered a operating loss of 130,000
The record of a closely-held domestic corporation show the following data for 2014: Gross income 1,500,000 Business Expenses 600,000 Gain on sale of business asset 60,000 Interest on deposits with Metrobank, net of tax 5,000 Sale of shares of stock, not listed: Selling Price 150,000 Cost 115,000 Dividends from Victory Corporation, domestic 35,000 Dividends paid during the year 120,000 Reserved fro building acquisition 300,000 In 2013, the Corporation suffered a operating loss of 130,000
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The record of a closely-held domestic corporation show the following data for 2014:
Gross income 1,500,000
Business Expenses 600,000
Gain on sale of business asset 60,000
Interest on deposits with Metrobank, net of tax 5,000
Sale of shares of stock, not listed:
Selling Price 150,000
Cost 115,000
Dividends from Victory Corporation, domestic 35,000
Dividends paid during the year 120,000
Reserved fro building acquisition 300,000
In 2013, the Corporation suffered a operating loss of 130,000. This amount was carried forward and claimed deduction from gross income 2014. The income tax due in 2014 is:
The Improperly Accumulated Earnings Tax is:
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The Income Tax due for 2014 is P231,000
The corporate income tax rate both for domestic corporation is 30% based on net taxable income. Excluded from the income tax are dividends received from domestic corporations; interest on Philippine currency bank deposit and yield from trust funds.
From the Gross income, only the P600,000 business expense and Net Operating Loss of P130,000 is deductible. Thus the Net Income is P770,000.
IAET is not imposed immediately since there must be unjustifiable accumulation of earnings. Here, there is dividend paid, P120,000.
