Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18: Tuition Fees P 12,800,000 Miscellaneous Fees 1,800,000 Interest on Bank Deposits 12,300 Rent Income 350,000 Salaries and Bonuses, all personnel 7,500,000 Other Operating Expenses 3,500,000 Quarterly Income Tax Payments 48,000 An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a depreciable life of 50 years. Compute the income tax payable assuming the university opted to claim the cost of construction as an outright Compute the income tax payable assuming the university opted to capitalize the cost of building construction.
Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18: Tuition Fees P 12,800,000 Miscellaneous Fees 1,800,000 Interest on Bank Deposits 12,300 Rent Income 350,000 Salaries and Bonuses, all personnel 7,500,000 Other Operating Expenses 3,500,000 Quarterly Income Tax Payments 48,000 An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a depreciable life of 50 years. Compute the income tax payable assuming the university opted to claim the cost of construction as an outright Compute the income tax payable assuming the university opted to capitalize the cost of building construction.
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 12CE
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- Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18:
|
Tuition Fees |
P 12,800,000 |
|
Miscellaneous Fees |
1,800,000 |
|
Interest on Bank Deposits |
12,300 |
|
Rent Income |
350,000 |
|
Salaries and Bonuses, all personnel |
7,500,000 |
|
Other Operating Expenses |
3,500,000 |
|
Quarterly Income Tax Payments |
48,000 |
An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a
- Compute the income tax payable assuming the university opted to claim the cost of construction as an outright
- Compute the income tax payable assuming the university opted to capitalize the cost of building construction.
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