The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000 Allowable expenses, P 2,800,000 Rental income, net of 5% withholding tax, P 475,000 Interest on money market placement (net), P 90,000 Inter-corporate dividends, P480,000 Additional information: Dividends paid, P 1,700,000 Payments, first three quarters, P 50,000 Ordinary shares, P700,000 Share premium, P200,000 Year 2019 Gross income, P 3,200,000 Expenses, P 3,000,000 Net Income, P200,000 Retained Earnings, P 500,000 How much is the improperly accumulated earnings tax in 2018 ?
The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000 Allowable expenses, P 2,800,000 Rental income, net of 5% withholding tax, P 475,000 Interest on money market placement (net), P 90,000 Inter-corporate dividends, P480,000 Additional information: Dividends paid, P 1,700,000 Payments, first three quarters, P 50,000 Ordinary shares, P700,000 Share premium, P200,000 Year 2019 Gross income, P 3,200,000 Expenses, P 3,000,000 Net Income, P200,000 Retained Earnings, P 500,000 How much is the improperly accumulated earnings tax in 2018 ?
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 1BCRQ
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The record of ABAKA Corporation, a closely-held corporation shows the following calendar years:
Year 2018
Gross income, P4,500,000
Allowable expenses, P 2,800,000
Rental income, net of 5% withholding tax, P 475,000
Interest on money market placement (net), P 90,000
Inter-corporate dividends, P480,000
Additional information:
Dividends paid, P 1,700,000
Payments, first three quarters, P 50,000
Ordinary shares, P700,000
Share premium, P200,000
Year 2019
Gross income, P 3,200,000
Expenses, P 3,000,000
Net Income, P200,000
Retained Earnings, P 500,000
How much is the improperly
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