Answer with solution.
2-8; Multiple Choice
Philippine Tax Rate
Question 2 1 pts Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income 300,000 270,000 Business income 800,000 450,000 Allowable deductions 200,000 100,000 Interest income from deposit in a bank 100,000 10,000 (Philippines) Assume the partnership is a General partnership, compute for the total tax due (basic tax and final tax) by the partnership. O 180,000 OO O 20,000 O 200,000Question 3 1 pts Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income 300,000 270,000 Business income 800,000 450,000 Allowable deductions 200,000 100,000 Interest income from deposit in a bank 100,000 10,000 (Philippines) Assume the partnership is a General professional partnership, compute for the total tax due (basic tax and final tax) by the partnership. OO O 20,000 180.000 O 200.000Question 4 1 pts Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income 300,000 270,000 Business income 800,000 450,000 Allowable deductions 200,000 100,000 Interest income from deposit in a bank 100,000 10,000 (Philippines) Assume the partnership is a General partnership, compute for the total tax due (basic tax and final tax) by Layla. O 30,000 O 72,000 O 68,000 O 34,000Question 5 1 pts Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income 300,000 270,000 Business income 800,000 450,000 Allowable deductions 200,000 100,000 Interest income from deposit in a bank 100,000 10,000 (Philippines) Assume the partnership is a General professional partnership, compute for the total tax due (basic tax and final tax) by Martis. O 157,000 159.000 161,000 O 155,000Question 6 1 pts Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental 300,000 Annual real property tax assumed and paid by Claude 50,000 Security deposit 200,000 Lease term 12 years On January 1. 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 2020. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2018 and 2019, respectively. O 850,000; 50.000 O 650,000 ; 0 0 600.000; 50.000 350,000; 350,000Question 7 1 pts Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental 300,000 Annual real property tax assumed and paid by Claude 50,000 Security deposit 200,000 Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 2020. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2020 assuming the company opted to report income from improvement using the lump-sum method. $50.000 6.300,000 O 6.350,000 O 500,000
