QUIZ 3 #3

CHAPTER 5 CORPORATE TAXPAYERS XYZ Corporation has the

SET A Gross Income, PH
1. C 6. A 11. B 16. C Gross Income, USA
2. D 7. C 12. A 17. B Expenses, PH
3 8. C 13. B 18. D Expenses, USA
4. E 9. C 14 19. A Interest on bank deposits
5 10.C 15 20. D Dividend from DC
Prizes and winnings, PH
#1 Prizes and winnings, PH
PASADO Corporation shows the ff data during the taxable year. Prizes and winnings, USA
Sales 500,000
Int. Inc., net of 20% final tax 24,000 6. What is the amount of
COS 300,000 7. What is the amount of
Sal. Exp. 120,000
Int. Exp. 60,000 All Regular Income
Rent Exp. 24,000 Gross Income, PH
Adv. Exp. 6,000 Gross Income, USA
Dep. Exp. 5,000 (Expenses, PH)
(Expenses, USA)
1. How much is the amount of the corp.'s itemized deductions? Prizes and winnings, PH
COS 300,000 Prizes and winnings, USA
Dep. Exp. 5,000 Taxable Income
305,000 Income tax rate
Tax due and payable
2. What is the amount of the corp.'s taxable net income?
Sales 500,000 8. What is the amount of
(COS) 300,000 All w/ regardless
GP 200,000 Gross Income, PH
Other Income 24,000 Interest on bank deposits
Total 224,000 Dividend from DC
(OPEX Sal to Dep Exp) 215,000 Prizes and winnings, PH
Taxable Net Income 9,000 Prizes and winnings, PH
Income Tax Rate 30% Taxable Income
Income Tax Payable 2700 Tax Rate
Income Tax Payable
#2
SYLVANIA Corporation provided the ff data for calendar year ending Dec. 31, 2018 #4
PH Abroad SAYONATO, a DC, already
Gross Income 7,000,000 $60,000 ff the taxable yr in which
Total Deduction 5,000,000 $25,000
Sales
ForEx $1 PHP 50 Sales Returns
Cost of Sales
3. What is the income tax assuming it is a DC? Operating Expenses
 PH Abroad Total
Gross Income 7,000,000 3,000,000 10,000,000 9. How much is the incom
(Total Deduction) 5,000,000 1,250,000 6,250,000 10. How much is the inco
3,750,000

4. What is the income tax assuming it is a RFC? Sales

PH (Sales Returns)
Gross Income 7,000,000 (Cost of Sales)
(Total Deduction) 5,000,000 Gross Income
Total 2,000,000 (Operating Expenses)
Inc. Tax Rate 30% Net Income
Income Tax 600,000 NOLCO
Taxable Income
5. What is the income tax assuming it is a non-profit hospital?

Tax due w/cever is higher

Less: Carryover

Income tax payable

XYZ Corporation has the ff info for the current yr 2018
Gross Income, PH 850,000
Gross Income, USA 700,000
Expenses, PH 650,000
Expenses, USA 575,000
Interest on bank deposits, PH 100,000
Dividend from DC 50,000
Prizes and winnings, PH 12,000
Prizes and winnings, PH 9,500
Prizes and winnings, USA 10,000

6. What is the amount of taxable income assuming the taxpayer is a RFC?

7. What is the amount of tax due and payable assuming the taxpayer is a DC?

All Regular Income DC w/ w/o RFC w/n

Gross Income, PH 850,000 850,000
Gross Income, USA 700,000
(Expenses, PH) 650,000 650,000
(Expenses, USA) 575,000
Prizes and winnings, PH 9,500 9,500
Prizes and winnings, USA 10,000
Taxable Income 344,500 no. 6: 209,500
Income tax rate 30%
Tax due and payable no. 7: 103,350

8. What is the amount of income tax due and payable assuming the taxpayer is a NRFC?
All w/ regardless
Gross Income, PH 850,000
Interest on bank deposits, PH 100,000
Dividend from DC 50,000
Prizes and winnings, PH 12,000
Prizes and winnings, PH 9,500
Taxable Income 1,021,500
30%
Income Tax Payable 306,450

SAYONATO, a DC, already on its 4th yr of operation as of 2017, immediately

ff the taxable yr in which the corporation commenced its operations. The ff financial data were given
CY 2017 CY 2018 CY 2019
2,104,000 2,800,000 3,100,000
Sales Returns 50,000 110,000 0
Cost of Sales 1,000,000 800,000 1,550,000
Operating Expenses 950,000 2,100,000 1,200,000
9. How much is the income tax due and payable in 2018?
10. How much is the income tax due and payable in 2019?

CY 2017 CY 2018 CY 2019

2,104,000 2,800,000 3,100,000
(Sales Returns) 50,000 110,000 0
(Cost of Sales) 1,000,000 800,000 1,550,000
Gross Income 1,054,000 1,890,000 1,550,000
(Operating Expenses) 950,000 2,100,000 1,200,000
Net Income 104,000 -210,000 350,000
-210,000
Taxable Income 104,000 0 140,000
RCIT 30% 31,200 42,000
MCIT(GI) 2% 21,080 37,800 31,000
Tax due w/cever is higher 31,200 no. 9: 37,800 42,000
Less: Carryover
2017 – – –
2018 – – 37,800
Income tax payable no. 10: 4,200
#5
MAGALING COLLEGE has the ff selected info for the taxable yr 2018
Tuition fee exclusively 5,900,000
used for educational purposes
Miscellaneous fees exclusively 18,000,000
used for educational purposes
Rental Income, net 7,125,000
Operating expenses related to rental income 2,300,000
Interest from bank deposits 100,000
Interest income from FCDS deposits 80,000
Dividend income from a domestic corporation 70,000
Dividend income from a foreign corporation 50,000
Quarterly income tax payments 75,000

Additional school building was built and finished on May 1, 2018 at cost of
4000 000 with a depreciable life of 25 years. Only if applicable, assume the educational
institution opted to claim the cost of construction as an outright expense.

11. How much is the income tax payable for 2018 assuming MAGALING College
is a non-stock non profit educational institution?
12.How much is the income tax payable for 2018 assuming MAGALING College
is a government educational institution?

Rental Income, net 7125000/.95 7,500,000

(OPEX related to rental income) 2,300,000
Dividend income from a foreign corporation 50,000
Taxable income 5,250,000
Tax Rate 30%
Income Tax Due 1575000
Less: Quarterly Pay 75,000
CWT on Rent 75000000*.05 375000 450,000
Income Tax Payable no. 11 & 12: 1,125,000

13. .How much is the income tax payable for 2018 assuming MAGALING College
is a proprietary educational institution?

School Fees 20.5M+5.9M 26,400,000

(OPEX- Fees) 18,000,000
(OPEX- Building) 4,000,000
Rental Income 7,500,000
(OPEX Rent) 2,300,000
Dividend Income- foreign 50,000
Taxable Income 9,650,000
Tax Rate 10%
Income tax due 965,000
Less: 450,000
Income tax payable 515,000

#6
CATCHAY PACIFIC Airlines Inc., a RFC has the ff data for the taxable yr 2018 as follows
Origin Destination Gross Receipts
Passengers Airfare China PH 2,000,000
Passengers Airfare PH China 1,800,000
Airfare for cargoes PH China 1,450,000
Airfare for cargoes China PH 800,000

14. How much is the income tax payable?

15. How much is the common carrier's tax for the year?