Gross sales – Php 1,500,000 Cost of sales – Php 500,000 Gross Profit – Php 1,000,000 Operating expenses: Depreciation – Php 100,000 Rent Expense – Php 100,000 Repairs and Maintenance – Php 100,000 Salaries and wages – Php 100,000 Utilities Expense – Php 100,000 Other income: Cash Prizes – Php 100,000 Dividends from ABC Corp. – Php 100,000 Interest income from bank deposits – Php 100,000 Rental income – Php 1,000,000 In addition, you learned that Nicanor intends to sell a residential house and lot which he inherited from his father and 1,000 shares of stocks in a domestic corporation which were sold by her mother to him in the amount of Php 1 Million. He provided you the information the following: Real property classified as capital asset: Zonal value of lot – Php 5 Million Assessor’s fair value of lot – Php 4 Million Assessor’s fair value of house – Php 5 Million Appraiser’s value – Php 12 Million Fair market value at time of his father’s death – Php 8 Million Shares of stocks not listed in stock exchange: Audited Financial Statements of the company disclosed the following: Balance Sheet: Asset - Php 5 Million Liability – Php 3 Million Stockholders’ Equity – Php 2 Million Income Statement: Revenue – Php 2 Million Cost and Expense – Php 1 Million Net Income – Php 1 Million Additional information: Outstanding shares of stocks is 10,000 Compute the taxable income.
In preparing the Annual Income Tax Return of Nicanor, the following information were culled from his accounting records:
Gross sales – Php 1,500,000
Cost of sales – Php 500,000
Gross Profit – Php 1,000,000
Operating expenses:
Rent Expense – Php 100,000
Repairs and Maintenance – Php 100,000
Salaries and wages – Php 100,000
Utilities Expense – Php 100,000
Other income:
Cash Prizes – Php 100,000
Dividends from ABC Corp. – Php 100,000
Interest income from bank deposits – Php 100,000
Rental income – Php 1,000,000
In addition, you learned that Nicanor intends to sell a residential house and lot which he inherited from his father and 1,000 shares of stocks in a domestic corporation which were sold by her mother to him in the amount of Php 1 Million. He provided you the information the following:
Real property classified as capital asset:
Zonal value of lot – Php 5 Million
Assessor’s fair value of lot – Php 4 Million
Assessor’s fair value of house – Php 5 Million
Appraiser’s value – Php 12 Million
Fair market value at time of his father’s death – Php 8 Million
Shares of stocks not listed in stock exchange:
Audited Financial Statements of the company disclosed the following:
Balance Sheet: Asset - Php 5 Million
Liability – Php 3 Million
Income Statement: Revenue – Php 2 Million
Cost and Expense – Php 1 Million
Net Income – Php 1 Million
Additional information: Outstanding shares of stocks is 10,000
Compute the taxable income.
a. Php 1,600,000
b. Php 1,500,000
c. Php 2,500,000
d. Php 1,800,000
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