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COVIDO Corporation is a domestic corporation had the following income in 2018: Gross Income 10,000,000 Allowable Business Expense 6,000,000 Interest Income received from bank deposit

COVIDO Corporation is a domestic corporation had the following income in 2018:

Gross Income 10,000,000

Allowable Business Expense 6,000,000

Interest Income received from bank deposit 100,000

Interest income from bank deposit in Wuhan, China 500,000

Dividend income from domestic corporation 1,000,000

Requirement:

1. How much is the final tax on interest income of COVIDO Corp in 2018 is:

A. 25,000

B. 20,000

C. 125,000

D. 100,000

2. How much is the dividend income domestic Corporation is subject to?

A. Final tax of 10%

B. Final tax of 20%

C. Subject to regular income tax

D. Exempted

3. How much is the interest income from bank deposit in Wuhan, China is subject to?

A. Final tax of 10%

B. Final tax of 20%

C. Subject to regular income tax

D. Exempted

4. How much is the corporate income tax payable in 2018 is?

A. 1,050,000

B. 1,200,000

C. 1,350,000

D. 1,650,000

5. How much is the corporate income tax payable in 2018 is?

A. Nil

B. 210,000

C. 200,000

D. 232,000

The tax law used is the tax law of the Philippines.

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