Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 14CE
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Transcribed Image Text:Capital gain on sale of personal car
Compute the taxable income assuming Panay Corporation was a resident
5. Compute the income tax due in the immediately preceding problem.
Interest income from 5/6 lending to clients
Ordinary gain on sale of old office furniture
2 Compute the total income subject to regular tax.
Capital gain on the sale of stocks directly to a buyer
Compute the total passive income subject to final tax.
Interest income from bank deposits
1 Mr. Santos derived the following income in 2021:
Business income
Compensation income
P 200,000
300,000
100,000
20,000
100,000
20,000
40,000
10,000
50,000
Royalty income
Dividend income
a P170,000
b. P1,370,000
c. P270,000
d. P1,470,000
a P1,730,000
b. P630,000
c. P1,470,000
d. P530,000
1. Compute the capital gain subject to capital gains tax.
a P70,000
b. P40,000
c. P60,000
d. P0
4. Panay, Inc., a large corporation, had the following income in 2021:
Philippines
P10,000,000 P12,000,000
50,000
80,000
8,700,000
Abroad
Rent income
Dividend - domestic
Royalties
Business expenses
200,000
9,800,000
Compute the taxable income if Panay, Inc. was a domestic corporation.
a. P3,500,000
c. P1,380,000
d. P1,300,000
b. P3,700,000
a. P1,149,000
b. P925,000
c. P1,110,000
d. P381,000
corporation.
a P3,700,000
b. P3,500,000
c. P1,380,000
d. P1,300,000
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