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Alpha Corporation

ALPHA Corporation's income and expenses for the 2018 taxable year are detailed, showing gross income of P1,435,500 and various sources of income including rent and dividends. The income tax payable is calculated to be P221,320, with a breakdown of final taxes and taxable income from both domestic and foreign sources. The document also includes a comparison of tax dues for different types of corporations, concluding with the answer of P109,500 for domestic and P67,500 for foreign corporations.

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Rosemarie Cruz
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73 views2 pages

Alpha Corporation

ALPHA Corporation's income and expenses for the 2018 taxable year are detailed, showing gross income of P1,435,500 and various sources of income including rent and dividends. The income tax payable is calculated to be P221,320, with a breakdown of final taxes and taxable income from both domestic and foreign sources. The document also includes a comparison of tax dues for different types of corporations, concluding with the answer of P109,500 for domestic and P67,500 for foreign corporations.

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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P1.450.000 (790.

600)
152,000 P811.400
30% P243.420 (14.500) (7.6OOL P221320

ALPHA Corporation, a domestic corporation has the following records of income and
expenses during 2018 taxable year:
Gross income, net of 1% withholding tax Expenses P1.435.500
Rent income, net of 5% withholding tax Dividend 790.600
from domestic corporation Royalty, gross of tax 136,800
Interest from bank deposit with PNB: net of tax 25.000
80,000
12,000

The income tax payable is -


a. P241,020 c. P260.020
b. P221.320 d. P238.320

❖ Answer: B

Solution:
Gross income, gross of 1% withholding tax (P1.435,50099%)
Expenses
Rent income gross of 5% withholding tax (P136.800/95%)
Taxable net income
xRCIT%
Income Tax Due
Less CWT on gross income
CWT on rent

Income Tax
Payable
53 The total final taxes is:
a. P19.000 c. P33.250 P16,000 Exempt
b. P21.500 d. P3.000 3,000 P19,000
Domestic RFC NRFC
Gross Income,
❖Answer: A P975,000 P975.000 P975.000
Philippines
Expenses, Philippines (750.000) (750,000)
Solution:
Gross Income,Royalty = P80,000 x 770,000
20%

Malaysia Dividend income from DC Interest


income-PNB; [(12,000/80%)
Expenses, Malaysia (630,000) x Total
final taxes
Interest on bank - • 25.000
deposit
64. Taxable
Hananiahincome
Corporation, a corporation365,000
engaged in business
225,000in the Pl000.000
Philippines and abroad has the following
Tax Rate
data for the current year: 30% 30% 30%
Gross Income, Philippines P975.000
Tax Due P109,500 67,500 300,000
Expenses, Philippines 750,000
Gross Income, Malaysia 770,000
Expenses. Malaysia 630,000
Interest on bank deposit 25,000

Determine the income tax due if the corporation is Domestic Res. Foreign Corp,
Non-resident Foreign Corp.

a. P116,800 P72.000 P320.000


b.- P109,500 P67.500 P300.000
c. P312,000 P515.850 P116,800
d. P109,500 P72.000 P300.000

❖ Answer: B

Solution:

Income Tax
Payable

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