Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

philippine taxation Holidays Inc., a domestic corporation, reported the following items of income and expenses: Net sales 2,500,000 Cost of sales 1,200,000 Gain on sale

philippine taxation

image text in transcribed

Holidays Inc., a domestic corporation, reported the following items of income and expenses: Net sales 2,500,000 Cost of sales 1,200,000 Gain on sale of old warehouse 300,000 Gain on sale of 10-year bonds 50,000 Gain on sale of 4-year bonds 20,000 Loss on assignment of accounts receivables 40,000 Entertainment, amusement and recreation expense 50,000 Premium on the insurance of company assets 20,000 Premium on the life insurance of company president 40,000 Car benefits given to a supervisor of the company 81,600 Share in the SSS, Pag-ibig and Philhealth of employees 30,000 Contributions to the government for public use 40,000 Discounts granted to senior citizens 20,000 Contributions to pension (P40,000 for prior service cost) 54,000 Regular salaries of non-senior citizen employees 400,000 Salaries of senior citizen employees 50,000 Utilities, supplies and miscellaneous expenses 70,000 Contributions to religious institutions 50,000 Compute the taxable income of Holidays Inc using optional standard deduction. (5 points) Compute the taxable income of Holidays Inc using itemized deduction. (5 points) Holidays Inc., a domestic corporation, reported the following items of income and expenses: Net sales 2,500,000 Cost of sales 1,200,000 Gain on sale of old warehouse 300,000 Gain on sale of 10-year bonds 50,000 Gain on sale of 4-year bonds 20,000 Loss on assignment of accounts receivables 40,000 Entertainment, amusement and recreation expense 50,000 Premium on the insurance of company assets 20,000 Premium on the life insurance of company president 40,000 Car benefits given to a supervisor of the company 81,600 Share in the SSS, Pag-ibig and Philhealth of employees 30,000 Contributions to the government for public use 40,000 Discounts granted to senior citizens 20,000 Contributions to pension (P40,000 for prior service cost) 54,000 Regular salaries of non-senior citizen employees 400,000 Salaries of senior citizen employees 50,000 Utilities, supplies and miscellaneous expenses 70,000 Contributions to religious institutions 50,000 Compute the taxable income of Holidays Inc using optional standard deduction. (5 points) Compute the taxable income of Holidays Inc using itemized deduction. (5 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0135982235, 9780135982235

More Books

Students also viewed these Accounting questions

Question

What is job rotation ?

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago