А В C Unlevered Firm Levered Firm 10,000 3,200 6,800 2,312 4,488 3,200 1 2 EBIT 10,000 3 Interest 4 Taxable Income 10,000 3,400 6,600 5 Tax (tax rate: 34%) 6 Net Income 7 CFFA 0
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What is the
Assume that cost of debt = 8%; unlevered cost of capital = 10%; systematic risk of the asset is 1.5. Assume a 50% debt to equity ratio.
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- 1. BATO Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a domestic corporation with company assets amounting to more than P100M. Group of answer choices P837,500.00 P800,000.00 P492,500.00 P3,350,000.00 2. LENI Lugawan Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a resident corporation. Group of answer choices P600,000.00 P1,500,000.00 P500,000.00 3. YORMS Corp has the following data for the year ended December 31, 2021:…Item 2 The tax rates for a particular year are shown below: Taxable Income Tax Rate $0 – 50,000 15 % 50,001 – 75,000 25 % 75,001 – 100,000 34 % 100,001 – 335,000 39 % What is the average tax rate for a firm with taxable income of $129,513?For income tax purposes, what is the amount of gross income given the following amounts? Gross sales 4,000,000.00 Sales discounts, returns and allowances 100,000.00 Cost of sales 1,500,000.00 Itemized deductions 800,000.00 Given the amount, how much is the minimum corporate income tax? Group of answer choices P78,000.00 P34,000.00 P32,000.00 P48,000.00
- Red Velvet Corporation, a domestic corporation has the following data. 2021 2022 Gross Income 3,500,000.00 2,400,000.00 Taxable Income 125,000.00 500,000.00 The income tax payable for 2021 is 31,250 40,000 35,000 37,500Button Company has the following two temporary differences between its income tax expense and income taxes payable. 00202000) 00202100) 00202200) Pretax financial income $840,000) $910,000) $945,000) Excess depreciation expense on tax return (30,000) (40,000) (10,000) Excess warranty expense in financial income 0020,000) 0010,000) 0008,000) Taxable income $830,000) $880,000) $943,000) The income tax rate for all years is 20%. Instructions a. Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. b. Indicate how deferred taxes will be reported on the 2022 balance sheet. Button's product warranty is for 12 months. c. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”Fill in the blanks: Unlevered firm Levered firm EBIT 10,000 10,000 Interest 0 3,200 Taxable income Tax (tax rate: 34%) Net income CFFA What is the taxable income, tax, net income, and CFFA for the unlevered and levered firms?
- 54. In relation to transaction #1, How much is the capital gains tax due, if any? A. PO C. P300,000 B. P360,000. D. P450,000If Your Taxable Income Is Up to $19,050 $19,050 $77,400 $77,400 $165,000 $165,000 $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 2018 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9,525 $9,525 $38,700 $38,700 $82,500 $82,500 $157,500 $157,500 $200,000 $200,000 $500,000 Over $500,000 Standard deduction for individual: $12,000 You Pay This Amount on the Base of the Bracket $ $0 952.50 4,453.50 14,089.50 32,089.50 45,689.50 150,689.50 Married Couples Filing Joint Returns Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 $0 1,905.00 8,907.00 28,179.00 64,179.00 91,379.00 161,379.00 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0 Standard deduction for married…ABC Corporation has the following information for the taxable year 2022: Quarter RCIT MCIT CWT 1st P200,000 P160,000 P40,000 2nd 240,000 500,000 60,000 3Rd 500,000 150,000 80,000 4th 300,000 200,000 70,000 MCIT carry-over from prior year amounts to P60,000 and excess tax credits from prior year amounts to P20,000. How much was the income tax payable for the first quarter? How much was the income tax payable for the third quarter? How much was the annual income tax payable?
- 1. A VAT-registered business makes a sale of P10,000, inclusive of VAT. The VAT on the sale can be computed asa. P10,000 x 12%b. P10,000 12%.c. P10,000 x 12%/112%d. P10,000 -12%/112%2. A Non-VAT registered business makes total sales of P110.000 during a taxable period.The percentage tax can be computed asa. P110,000 x 3%.b. P110,000 3%.c. P110,000 x 3%/103%d. P110,000 3%/103%3. A VAT-registered business makes a sale of P34,500, inclusive of VAT. The amount of sale that was reported in the statement of comprehensive income can be computed asa. P34,500 x 112%.b. P34,500 112%.c. P34,500 x 12%/112%d. P34,500 12%/112%4. A VAT-registered business has total sales of P62,720 and total purchases of P25,088, both inclusive of VAT. How much is the net VAT payable to the BIR?a. 1,882 b. 4,032 c. 4,516 d. 5,2245. A Non-VAT business has total sales of P200,720. How much is the sales tax payable to the BIR?a. 2,007b. 4,015c. 4,516d. 6,022Compute the taxable income. A. ZeroB. P4,000,000C. P5,000,000D. P29,000,000ver But not over Tax is: Of amount over: $0 $50,000 15% $0 $50,000 $75,000 $7,500 + 25% $50,000 $75,000 $ 100,000 $13,750 + 34% $75,000 $100,000 $335,000 $22,250 + 39% $100,000 $335,000 $10,000,000 $ 113,900+ 34% $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% $10,000,000 $15,000,000 $18, 333, 333 $ 5,150,000 + 38% $15,000,000 $18,333,333 35% $0 Refer to the table above: A firm has $12, 000, 000 in taxable income. What is the firm's average tax rate?