From the given data below, how much is the final tax on the dividend earned by Cruz? ZAX Corporation, a domestic corporation, declared a P1,000,000 dividend for thecurrent period 2021. The following are some stockholders of ZAX:StockholderDescriptionOwnershipDe GuzmanResident citizen10%CruzABC CorporationDEF CorporationNon-resident alien engaged in businessin the PhilippinesDomestic corporationNonresident foreign corporation15%30%10%

Provisions : 1. Dividend paid by one Philippine domestic corporation to another one are totally…

Answered: ZAX Corporation, a domestic…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
Mang Corporation, a domestic corporation, owns 20% of the outstanding shares of RJ Corporation, a non-resident foreign corporation. On March 1, 2021, it received dividends amounting to P1,000,000. Which statement is subject to income tax? The said dividend has not been used until January 13, 2023 All of the above The said dividend was utilized in 2022 for its dividend payment The said dividend was utilized on June 15, 2022 for its working capital requirements
A corporation has the following data for the year 2018: Gross Income, Philippines P1,000,000 Gross income, USA 500,000 Gross income, Japan 500,000 Expenses, Philippines 300,000 Expenses, USA 200,000 Expenses, Japan 100,000 Other Income: Dividend from San Miguel Corp 70,000 Dividend from Ford Motors, USA 120,000 Gain, sale of San Miguel shares directly to buyer 150,000 Royalties, Philippines 50,000 Royalties, USA 100,000 Interest (other than from banks) 60,000 Rent, land USA 250,000 Other rent income 100,000 Prize, contest in Manila 200,000 Land sold in the Philippines (selling prize) 2,000,000 The cost of the land which is not used in business is P1M, while FMV is P3M, nd if it is a non-resident corporation, its total tax liability is
A corporation has the following data for the year 2018: Gross Income, Philippines P1,000,000 Gross income, USA 500,000 Gross income, Japan 500,000 Expenses, Philippines 300,000 Expenses, USA 200,000 Expenses, Japan 100,000 Other Income: Dividend from San Miguel Corp 70,000 Dividend from Ford Motors, USA 120,000 Gain, sale of San Miguel shares directly to buyer 150,000 Royalties, Philippines 50,000 Royalties, USA 100,000 Interest (other than from banks) 60,000 Rent, land USA 250,000 Other rent income 100,000 Prize, contest in Manila 200,000 Land sold in the Philippines (selling prize) 2,000,000 The cost of the land which is not used in business is P1M, while FMV is P3M, Its total tax liability as a domestic corporation is:
On January 1, 2021, Belgium Company purchased 20% of Russia Company's outstanding ordinary shares for P4,0 Belgium Company is the largest single shareholder in Russia Company and Russia Company's officers are a majority on Belgium Company's board o directors. Russia, for the year, reported a net income of P8,000,000 and paid dividends of P3,000,000. How much is the Investment in associate on December 31, 2021?
Eduardo, a large entity, owns 50% and 20% of Letecia Corporation’s ordinary and preference shares, respectively. Letecia’s shares outstanding at December 31, 2021 follow: Ordinary share, P5,000,000 10% non-cumulative preference share, P1,200,000 Letecia reported net income of P750,000 for the year ended December 31, 2021. What amount should Eduardo report as total revenue related to its investment in Letecia Company for the year ended December 31, 2021?
On January 1, 2021, Garcia Co., a U.S. corporation with the U.S. dollar as its functional currency, established Fine Co. as a subsidiary. Fine is located in Special Country, and its functional currency is the LCU. Fine is engaged in the following transactions during 2021: January 1, 2021 Issued common stock for 500,000 LCU July 25, 2021 Sold a patent at a gain of 50,000 LCU October 1, 2021 Paid dividends of 60,000 LCU Fine Co.’s operating revenues and expenses for 2021 were 900,000 LCU and 700,000 LCU, respectively. The appropriate exchange rates were: January 1, 2021: 1 LCU = $2.45 July 25, 2021: 1 LCU = $2.15 October 1, 2021: 1 LCU = $2.54 December 31, 2021: 1 LCU = $2.65 Average for 2021: 1 LCU = $2.41 Required: Calculate the translation adjustment for Fine Co. (Round your answers to the nearest whole dollar.)
The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000Allowable expenses, P 2,800,000Rental income, net of 5% withholding tax, P 475,000Interest on money market placement (net), P 90,000Inter-corporate dividends, P480,000Additional information: Dividends paid, P 1,700,000Payments, first three quarters, P 50,000Ordinary shares, P700,000Share premium, P200,000Year 2019 Gross income, P 3,200,000Expenses, P 3,000,000Net Income, P200,000Retained Earnings, P 500,000How much is the improperly accumulated earnings tax in 2018 ?
Mr. ABC sold shares of resident foreign corporation directly to a buyer. The shaes were purchased for P200,000 and were sold at a net selling price of P420,000. Compute the capital gain tax. A. P 33.000B. P 22,000C. P 11,000D. zero
Mr. C. is a domestic corporation with the following data for 2002 (first year of operations): Gross profit from sales 2,000,000Dividend from domestic corporation 20,000 Capital gain on sale of land in the Philippines held for two years (sold at P1,000,000) 200,000 Capital gains on sale of shares of domestic corporation held for two months (direct sale to buyer) 120,000 Business expenses 1,100,000 Capital loss on bonds of domestic corporation held for 6 months 30,000 What is the taxable income if the taxpayer had chosen itemized deduction?
Corporation A owns 70% of all classes of stock in Corporation B throughout 2021. Corporations A and B are Subchapter C corporations, and they are both domestic corporations. The Board of Directors of Corp. B authorized and paid $800,000 in cash dividends to Corporation A. Assume Corporation A qualifies for the Dividends Received Deduction. For tax purposes, how much does Corporation A recognize on Form 1120 for 2021, and how much is the Dividends Received Deduction for 2021? $800,000 recognized; $520,000 DRD$520,000 recognized; $280,000 DRD$280,000 recognized; $520,000 DRD$280,000 recognized; $800,000 DRDNone of the other choices are correct.
Opus Limited is a CCPC. In 2023, the company received the following dividends: Dividends on Portfolio Investments Dividends from Magnum Inc. [(100%) ($55,000)] Dividends from Masterpiece Ltd. [(40%) ( $100,000)] $ 35,000 55,000 40,000 Opus owns 100% of the shares of Magnum Inc. and 40% of the shares of Masterpiece Ltd. Masterpiece received a dividend refund of $10,000 on its dividend payment, while Magnum received a dividend refund of $15,000. Required: Determine the amount of Part IV Tax payable by Opus Limited for the current year. Part iv tax rate: 38

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