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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

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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)

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