10 TASK PERFORMANCE

CALDITO, JANINE B.
BSBA401

1. Compute the income tax payable

Compute the income tax payable P5,000,000
Gross Income, unrelated activities 5,000,000
Rental Income (2,000,000 x 95%) 1,900,000
Total Gross Income 11,900,000
Less: Expenses, related activities (2,000,000)
Expenses, unrelated activities (3,000,000)
Net Taxable Income 6,900,000
Tax Rate 30%
Net Tax Due 2,070,000
Less: Quarterly income tax paid - first three quarters (500,000)
Income Tax Payable P1,570,000

2. Compute the tax payable of the school.

Income from the tuition fees P3,500,000
Rent Income (1,900,000/.95) 2,000,000
School Miscellaneous Fees 1,500,000
Dividend Income from foreign corporation 2,000,000
Total Gross Income 9,000,000
Less: Operating Expenses (4,000,000)
Net Taxable Income 5,000,000
Special Tax Rate 10%
Income Tax Due 500,000
Less: Creditable withholding tax on rent (2,000,000 - 1,900,000) (100,000)
Income Tax Payable P400,000

3. A.Compute the income tax payable assuming the university opted to claim the cost of
construction as an outright expense.
Tuition Fees P12,800,000
Miscellaneous Fees 1,800,000
Rent Income 350,000
Total Gross Income 14,950,000
Less: Salaries and bonuses, all personnel (7,500,000)
Other operating expenses (3,500,000)
Construction cost- school building (2,000,000)
Net Taxable Income 1,950,000
Special Tax Rate 10%
Income Tax Due 195,000
Less: Quarterly Income tax payments (48,000)
Income Tax Payable P147,000
B.Compute the income tax payable assuming the university opted to claim the cost of
construction as an outright expense.
Tuition Fees P12,800,000
Miscellaneous Fees 1,800,000
Rent Income 350,000
Total Gross Income 14,950,000
Less: Salaries and bonuses, all personnel (7,500,000)
Other operating expenses (3,500,000)
Depreciation - school building [(2,000,000/50) x (9/12)] (30,000)
Net Taxable Income 3,920,000
Special Tax Rate 10%
Income Tax Due 390,000
Less: Quarterly Income tax payments (48,000)
Income Tax Payable P342,000

4. A.Compute the income tax still due and payable in 2X18.

Gross Income from hospital operation P2,000,000
Rent Income 200,000
Total Gross Income 2,200,000
Less: Operating Expenses (500,000)
Depreciation - Hospital building [(4,000,000/25) x (6/12)] (80,000)
Net Taxable Income 1,620,000
Special Tax Rate 10%
Income Tax Due 162,000
Less: Creditable withholding tax on rent (200,000-190,000) (10,000)
Income Tax Payable P152,000
B. Assume the hospital was organized for profit, compute the income tax still due and
payable in 2X18.
Gross Income from hospital operation P2,000,000
Rent Income (190,000/.95) 200,000
Total Gross Income 2,200,000
Less: Operating Expenses (500,000)
Depreciation - Hospital building [(4,000,000/25) x (6/12)] (80,000)
Net Taxable Income 1,620,000
Special Tax Rate 30%
Income Tax Due 486,000
Less: Creditable withholding tax on rent (200,000-190,000) (10,000)
Creditable withholding tax on interest (40,000)
Dividend income from a domestic corporation (100,000)
Income Tax Payable P336,000

5. Compute the income tax payable for 2X18.

Gross Philippines Billings P8,000,000
Tax Rate 2.5 %
Income Tax Payable P200,000

6. Compute the income tax payable.

Passengers' airfare from the Philippines to China P1,500,000
Airfare for cargoes from the Philippines to China 1,300,000
Gross Revenue 1,800,000
Tax Rate 2.5%
Income Tax Payable P70,000

7. Compute the amount of improperly accumulated earnings tax (IAET).

Taxable Income (780,000/30%) P2,600,000
Non-taxable gain on life insurance 900,000
Dividend income from resident corporation (tax exempt) 200,000
Interest income on peso deposit (16,000/80,000) 20,000
Capital gain on direct sales of share (85,000/85%) 100,000
Amount of NOLCO deducted 100,000
Total 3,920,000
Less: Income tax due 201A (780,000)
Quarterly income tax paid (580,000)
Dividend declared and paid (440,000)
Reserve for maturing bonds (300,000)
Final Tax on shares (15,000)
Final Tax on deposit (4,000)
Improperly accumulated earnings 1,801,000
IAET Rate 10%
Improperly Accumulated Earnings Tax P180,100

8. Compute the amount of improperly accumulated earnings tax (IAET).

Taxable Income (300,000/30%) P1,000,000
Income subject to final tax 60,000
Income subject to capital gains tax 45,000
Total 1,105,000
Less: Income tax paid (300,000)
Improperly Accumulated Earnings 805,000
IAET Rate 10%
Improperly Accumulated Earnings Tax P80,500