Karel Inc. was assessed by the BIR for improperly accumulating profits. Karel Inc. reported the following in 2020: Gross income 500,000 Business expenses 200,000 Dividend income – domestic 30,000 Royalties, net of final tax 40,000 Dividends declared 100,000 How much is the IAET?

Karel Inc. was assessed by the BIR for improperly accumulating profits. Karel Inc. reported the following in 2020: Gross income 500,000 Business expenses 200,000 Dividend income – domestic 30,000 Royalties, net of final tax 40,000 Dividends declared 100,000 How much is the IAET?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 22CE

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Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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