The BIR was imposing the improperly accumulated profits tax on the accumulation of profits of 2009. În that year, the corporation had: Gross profit from sales Dividend from domestic corporation Capital gain on sale of land (selling price P4M)) 400,000 Interest on Philippine currency bank deposit Business expenses Capital gains tax on sale of land Final tax from interest on bank deposit Income tax on its taxable income Dividends declared and paid P 900,000 20,000 30,000 (400,000) (240,000) ( 6,000) (175,000) (260,000) The improperly accumulate earnings tax is:
The BIR was imposing the improperly accumulated profits tax on the accumulation of profits of 2009. În that year, the corporation had: Gross profit from sales Dividend from domestic corporation Capital gain on sale of land (selling price P4M)) 400,000 Interest on Philippine currency bank deposit Business expenses Capital gains tax on sale of land Final tax from interest on bank deposit Income tax on its taxable income Dividends declared and paid P 900,000 20,000 30,000 (400,000) (240,000) ( 6,000) (175,000) (260,000) The improperly accumulate earnings tax is:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:3. The BIR was imposing the improperly accumulated profits tax on the accumulation of
profits of 2009. In that year, the corporation had:
P 900,000
20,000
Capital gain on sale of land (selling price P4M)) 400,000
30,000
(400,000)
(240,000)
( 6,000)
(175,000)
(260,000)
Gross profit from sales
Dividend from domestic corporation
Interest on Philippine currency bank deposit
Business expenses
Capital gains tax on sale of land
Final tax from interest on bank deposit
Income tax on its taxable income
Dividends declared and paid
The improperly accumulate earnings tax is:
4. ABC, is a domestic corporation engaged in merchandizing business. For the calendar
year, it had a net income per books of P500, 000, after considering, among others, the
following:
a. Dividend received from a domestic corporation P 30,000
b. Provision for doubtful accounts
10,000
20,000
c. Dividend received from a foreign corporation
d. Portion of P150,000 advance rental already earned 100,000
e. Recovery of receivables previously written off (included as part of net income
above):
Allowed by the BIR as deduction
Disallowed by the BIR as deduction
f. Refund of taxes (included as part of net income above):
Allowed by the BIR as deduction
Disallowed by the BIR as deduction
20,000
30,000
25,000
15,000
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