Mr. Siegfried, a resident citizen, received P100,000 dividend income from Vodka, Inc., a domestic corporation. How much final tax must have been withheld by Vodka, Inc.?

Q: A resident citizen taxpayer sold share of stock of a domestic corporation directly to the buyer at…

A: Capital gain = Sales amount of shares - Cost of shares sold  Capital gain tax = Capital gain * Tax…

Q: How much can he deduct as a business expense on his income tax return

A: Given information is: Paul is the proprietor of a home based business.  He paid $25,000 to his…

Q: For the following independent cases, determine whether economic income is present and, if so,…

A: Economic income is different from accounting income. Accounting income considers realized gains and…

Q: Kara sold to Mia shares of stock of a foreign corporation at a selling price of P1,000,000 with an…

A: Answer: As per Bureau of revenue department at Philippines, the capital gain is applicable for the…

Q: Mr. Seigfried, a resident citizen, received P100, 000 dividend income from Vodka, Inc., a domestic…

A: As per the Tax Laws of the Philippines, any resident citizen receiving dividend income from a…

Q: How much final tax was withheld from her dividend income?

A: Correct Answer = Option A = P0 Explanation As per the law dividend received from the domestic…

Q: Teal Corporation, with E & P of$2,000,000, distributes property with a basis of $150,000  and a fair…

A: Tax consequences are the situations in which taxes to be given to the government are computed as…

Q: ackie, Inc. paid P2,740 community tax which mostly is attributable to its gross earnings.  Assuming…

A: Cedula or community tax certificate is a document that is mandatory for all individuals aged 18 or…

Q: Mr. Encina is a government employee. He is not engaged in business nor has any other source of…

A: Tax refers to the amount of tax which is imposed through the government authorities on the taxable…

Q: Nicanor left the following bank deposits upon his death: - Uno Bank- 1,000,000 - Dos Bank-…

A: Final taxes refers to the taxes which are prescribed on certain income and once the income of the…

Q: Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this…

A: The share of loss is $15,000 which is computed by multiplying total loss of $45,000 with the…

Q: ames, who is in the 35 percent marginal tax bracket with a 15 percent tax rate on dividends, owns…

A: Dividend is the amount which is paid to shareholders regularly by the company. When the company…

Q: Tom Cruiser is buying a single-family residence in Oakvile, Ontario, for $805,000. According to the…

A: Taxable income: It is the income on which tax is calculated that is to be paid to the government and…

Q: xable Year 2023

A: Tax is the liability of an individual owing to the government. The government collects the tax from…

Q: Jhumel received cash dividends from her investment in the stocks of Jollibee foods Corporation…

A: Correct Answer = Option A = P0 Explanation As per the law dividend received from the domestic…

Q: Mr. Albuera, a resident citizen, received P18,000.00 as interest from his short-term deposit.…

A: Solution Short term deposit means amount deposit generally  for a period less than one year.

Q: Omega Corporation purchased a motor vehicle worth P1,400,000 for the use of its executive. It was…

A: The benefits which are provided by the employer which acts as job satisfaction to the employees are…

Q: Meghan gives May (not Meghan’s spouse) a gift of $34,000 (plus 4905)  in 2021.  Meghan is married…

A: If Meghan files a joint return with her spouse, then the total exemption allowed is $30,000 ($15,000…

Q: aeRo Yi is an employee of Danbam Corp. with a taxable income of P220,000. At the same time, he has a…

A: Preferential taxation is an optional taxation scheme in Philippines to tax the total of gross sales…

Q: Allen, Beth, and Charlie formed Brick Corporation. Allen and Beth each received one-third of Brick…

A: Preferred stock- Preferred stock, are shares of a corporation's stock with dividends that are…

Q: Mr. Ramos, a non-resident citizen, sold shares of stocks of a domestic corporation directly to a…

A: Capital gains refer to profit earned on the sale of capital assets. Ordinary income and capital…

Q: Compute for the capital gains tax.

A: Capital gains tax rate in the country which is Philippines is the 6% which is charged on the shares…

Q: Allan left the following bank deposits upon his death:

A: In the above problem  there is no mention of country.  Normally from currency…

Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…

A: Purchase price = $63,000 Adjusted value now= $37,800 Sale price = $41,580 Gain = Sale price -…

Q: Kesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she…

A: Tax consequences are occurred as and when real benefits of the transactions are exchanged.…

Q: Katrina was an S corporation shareholder. After her initial contributions, she had the following tax…

A: Stockholder's Equity includes the amount contributed by shareholders issued in the form of common…

Q: Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for…

A: Brown Corporation carries $240,000 in their current E&P of and the amount is assigned on the…

Q: Nicanor, a Non-Resident Alien residing in Canada, bought 20,000 (@par value of Php 100) shares of…

A: Cost of securities = 20000 shares x 100 = P2000000 Sales price = P 4000000

Q: What is the income tax due to John Wick in his quarterly income tax?

A: Given: Sales amounted = P800,000 Services as a broker received = P300,000 Tax = 8% Cost of sales =…

Q: Anna bought a condominium unit under installment basis, to be used as his office in the practice of…

A: Purchase under installment basis is that the buyer of the property or anything buys goods but the…

Q: Mr. Sotto is a resident citizen who earned the following during the current taxable year: (1)…

A: In Philippines the income which are derived to the resident Citizen which has to be withhold taxes…

Q: In 2006, Douglas purchased an office building for $500,000 to be used in his business.  He sells the…

A:

Q: Ms. Millie, a non-resident alien engaged in trade or business, owns 1,000,000 shares of MWC, Inc. In…

A: Let's understand this in a very simple manner: Tax on dividends = No of shares X Price of Dividend X…

Q: Calculate the applicable percentage tax.

A: Answer: Purchase price of shares = 5000 @P20 per share = P100,000 Sales price of shares = P 120,000…

Q: Tim, a single taxpayer, receives $500 of qualified dividends from Exxon in the current year. His…

A: Given that: Qualified dividends received = $500 Taxable income before dividends = $26000

Q: Ms. Claveria had a business net income of P300,000. She alsoearned P5,000 commission from selling…

A: The net income is the total profits earned against various costs.

Q: Frances transfers her business assets (basis of $260,000; FMV of $220,000) to her newly formed…

A: (1) Frances does not recognize any deductible loss as the shares have been provided in exchange of…

Q: A resident citizen taxpayer sold share of stock of a domestic corporation directly to the buyer at…

A: Capital gain = Fair market value on date of sale – Cost of the shares sold                       =…

Q: Josie is a resident citizen who earned the following during the current taxable year: (1) Royalty…

A: Regular income tax or Ordinary income tax refers to the tax levied on: Income from wages or salary…

Q: Nicanor left the following bank deposits upon his death: • Uno Bank - Php 1,000,000 • Dos Bank - Php…

A: The heirs will opt for final tax and bank will collect final with holding tax at rate of 6% on 6…

Q: Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Incorporated, which…

A: A corporation tax is a direct tax which is often imposed on the income earned by a particular…

Q: What is the taxable income of Mr. Pamplona subject to regular income tax?

A: Tax is the amount which the taxpayer has to pay on the taxable income and which is determined as per…

Q: Mr. Lito Bag is engaged in the sale of goods and has a maximum charitable contribution of P30,000…

A: Answer: Itemized deductions is the deduction that are taken if standard deduction is not taken. It…

Q: Katrina was an S corporation shareholder. After her initial contributions, she had the following tax…

A: According to US tax laws, losses are deductible to the extent of basis in the firm / stock

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.