Classify the items for deduction in the following scenarios. 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Rent Expense 24,000 Advertising Expense Interest Income, net of 20% final tax Cost of Sales 300,000 Depreciation Expense Salary Expense 120,000 NOLCO Interest Expense 60,000 Compute for the total itemized deduction. P 24,000 6,000 5,000 50,000
Classify the items for deduction in the following scenarios. 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Rent Expense 24,000 Advertising Expense Interest Income, net of 20% final tax Cost of Sales 300,000 Depreciation Expense Salary Expense 120,000 NOLCO Interest Expense 60,000 Compute for the total itemized deduction. P 24,000 6,000 5,000 50,000
SWFT Essntl Tax Individ/Bus Entities 2020
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Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:Deductions from Gross Income
Classify the items for deduction in the following scenarios.
2. Debtor Corporation shows the following data during taxable year:
Sales
P 500,000
Rent Expense
Advertising Expense
Interest Income, net of 20% final tax
Cost of Sales
24,000
300,000
Depreciation Expense
Salary Expense
120,000
NOLCO
Interest Expense
60,000
Compute for the total itemized deduction.
3.
A Domestic Corporation has the following data on income and expenses:
Gross business income
Deductions including SSS and PhilHealth contributions of P150,000
Contributions to the government for priority project in education
Contributions to foreign private foundation
Contributions to domestic charitable organization
Compute for the deductible charitable and other contributions.
P 24,000
6,000
5,000
50,000
P 6.200.000
2.500.000
100,000
100,000
190,000
2
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