2. Advanced Learning Institute, an educational institution, provided the following data for the current taxable year: Income from tuition fees School Miscellaneous Fees Dividend Income: Domestic Corporation Foreign Corporation Rent Income (Net of 5% withholding tax) Operating Expenses Compute the tax payable of the school. P 3,500,000 1,500,000 2,000,000 2,000,000 1,900,000 4,000,000 2
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- LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.Income Tax on Special Corporations Read and analyze the following scenarios and apply the principles and concept of income taxation on special corporations. Pioneer College, a private educational institution, has presented the following data for the year: Gross Income, related activities P5,000,000 Gross Income, unrelated activities (except rental income) 5,000,000 Rental income (gross of 5% WT) 2,000,000 Expenses, related activities 2,000,000 Expenses, unrelated activities 3,000,000 Dividend income from a domestic corporation 100,000 Quarterly income tax paid for the first three quarters 500,000 Compute the income tax payable. Advanced Learning Institute, an educational institution, provided the following data for the current taxable year: Income from tuition fees P 3,500,000 School Miscellaneous Fees 1,500,000 Dividend Income: Domestic Corporation 2,000,000 Foreign Corporation 2,000,000 Rent…A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: Assuming that the tax rate is 25%, what is the income tax payable of A? Group of answer choices P2,500.00 P12,500.00 P25,000.00 P15,000.00
- FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000Read and analyze the following scenarios and apply the principles and concept of income taxation on special corporations. Pioneer College, a private educational institution, has presented the following data for the year: Gross Income, related activities P5,000,000 Gross Income, unrelated activities (except rental income) 5,000,000 Rental income (gross of 5% WT) 2,000,000 Expenses, related activities 2,000,000 Expenses, unrelated activities 3,000,000 Dividend income from a domestic corporation 100,000 Quarterly income tax paid for the first three quarters 500,000 Compute the income tax payable.Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income. GAAP net income before tax $700,000 Meal and entertainment expense 100,000 GAAP depreciation expense 110,000 Depreciation expense for tax purposes 120,000 a. Compute BDI’s tax expense for financial statement purposes. b. Compute BDI’s tax payable to the IRS.
- Haidia corporation, an educational institution provided the following data for the current year: Income from tuition fees Php 3,500,000 School miscellaneous fees 1,500,000 Dividend income: Domestic corporation 2,000,000 Foreign corporation 2,000,000 Rent income (net of 5% withholding tax) 1,900,000 Operating expenses 4,000,000 The income tax due of the school is:Holly’s Art Galleries recently reported $7.9 million of net income. Its EBIT was $13 mil-lion, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $7.9 million net income by 1 2 T 5 0.79 to find the pre-tax income. The difference between EBIT and taxable incomThe following items of gross income are exempted from taxation, except: A.Revenues of a non-stock and non-profit educational institution (5M) B. PCSO or lotto winnings in the amount of 2M C. SSS, GSIS, Pag-ibig, or Philhealth benefits (100,000) D. None of the above
- A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: What is A's taxable income? Group of answer choices P40,000.00 P50,000.00 P90,000.00 P100,000.00ABC corporation provided the following data for calendar year ending December 31, 2021 ($ 1= P50). Use new tax rate under CREATE Law (RA 11534) Philippines Abroad Gross income P4, 000, 000 $ 40, 000 Deductions 2, 500, 000 $ 15, 000 Income Tax Paid $ 3, 000 REQUIRED: Compute for the below: A. If it opts to claim the tax paid abroad as deduction from gross income, Compute for its income tax. B. If it is private educational institution, Compute for its income tax due after tax credit. C. If it is a non-profit hospital, Compute for its income tax credit.A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: Where is the income taxes withheld be credited? Group of answer choices Tax payable Tax credit None of the above Taxable income