STRAIGHT PROBLEMS - Show your solutions in good form.

1. Lalayo Corporation, a domestic corporation, had the following cumulative data as at the end of each of the first
three quarters, and end of its eighth taxable year:

FIRST SECOND THIRD YEAR

Gross profit from sales 500,000 700,000 850,000 990,000
Operating Expenses 200,000 280,000 340,000 396,000

REQUIRED:
1. Compute the income tax due at the end the first three quarters.
2. Compute the income tax payable at the end of the eighth year.

2. Minahal Inc. has the following records of income and expenses in 2022:

Gross Income, net of 1% withholding tax P1,435,500

Expenses 756,000
Rent Income, net of 5% withholding tax 136,800
Expenses on rent 34,600
Dividend from domestic corporation 25,000
Royalty 80,000
Interest from bank deposit with PNB, gross of tax 15,000

REQUIRED:
1. Compute for the corporate income payable.
2. Compute for the total final income tax paid.

3. Bawal na Pag-ibig Corporation, a 10-year old corporation engaged in business in the Philippines and abroad,
has the following data in 2022:

Gross Income, Philippines 97,500,000

Expenses, Philippines 75,000,000
Gross Income, Japan 77,000,000
Expenses, Japan 63,000,000
Interest on Bank Deposit, Philippines 25,000
Royalties, Philippines 40,000

REQUIRED: Compute the income tax due assuming the corporation is –

1. A domestic corporation
2. A resident international sea carrier
3. A non-resident lessor of aircraft.
4. A non-resident cinematographic film owner.

4. Itinago Corporation, which started with its operations in 2010, has the following quarterly records in 2022:
 FIRST SECOND THIRD FOURTH
QUARTER QUARTER QUARTER QUARTER
Gross Profit 500,000 850,000 800,000 770,000
Expenses 400,000 777,000 640,000 575,000
Dividend – domestic company 15,000 15,000 20,000 20,000
Interest – peso bank deposit 3,000 5,000 3,750 2,250
Income tax Withheld 5,000 7,000 8,000 6,750
Rent Income(net of 5% 38,000 38,000 42,750 42,750
withholding tax)
ADDITIONAL INFORMATION:
The company had an excess payment of P12,500 in 2018 from which it had decided to claim tax credit on the
excess.

REQUIRED:
1. Compute the income tax for each quarter.
2. Compute to total taxes paid in each quarter.

5. After 2 years of operation, Binitawan Corp., a domestic corporation reported the following income and
expenses:

3rd year 4th year 5th year 6th year

Sales P1,000,000 P2,500,000 P4,000,000 P5,000,000
Cost of sales 600,000 1,200,000 2,400,000 2,700,000
Operating expenses 300,000 1,300,000 1,400,000 1,500,000
Royalty income (net) 80,000 160,000 120,000 40,000
Int. Inc on Bank dep,(net)20,000 32,000 16,000 24,000
Dividend income (Domestic)50,000 60,000 70,000 80,000
Rent income 200,000 300,000 100,000 50,000
Quarterly tax paid 10,000 20,000 30,000 40,000

Required: Compute for the following:

1. Income tax payable (still due)
2. Final taxes.