Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has the following financial records: Gross Sales P7,500,000 P3,000,000 P2,500,000 Cost of Sales Itemized Deductions
Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has the following financial records: Gross Sales P7,500,000 P3,000,000 P2,500,000 Cost of Sales Itemized Deductions
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 1BCRQ
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Question
Answert the following:
Transcribed Image Text:Tax Due Under OSD and Itemized Deductions
For 2021, Lili Corp., a domestic corporation, has the following financial records:
Problem
y Due Under OSD and Itemized Deductions
Gross Sales
P7,500,000
P3,000,000
P2,500,000
Cost of Sales
Itemized Deductions
Transcribed Image Text:For questions 4 to 6:
4. The taxpayer did not signify its intention to avail of the OSD in its first quarter ITR.
Deduction allowed is
5. Taxable income is
6. Tax due is
1. Lili Corp.'s tax due is
(higher, lower, or the same) when OSD is
availed of compared to Itemized Deductions.
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