PROBLEM 34

An individual who is married and has 3 dependent children had the following data in 2019:

Gross Service Fees P1,800,000

Cost of Service Rendered 516,800

Rental Income 216,150

Interest Income on Trade Receivables 34,750

Interest Income on bank time deposits in Phil. 18,000

Interest Expense on Debts to banks 30,500

Taxes Expense (including income tax for 2018 of P26,000) 63,000

Losses (including net gambling losses of P80,000) 152,000

Bad Debts Expense (only 60% of this was written off) 78,000

Depreciation Expense 54,000

Pension Contribution 35,400

Charitable Contribution (deductible but subject to limitation) 76,500

Research & Development Cost (amortized for 5 years) 142,000

Salaries & Wages of employees 350,000

Rent Expense 163,000

Repairs and Maintenance Expense (15% is undocumented) 51,200

Advertising Expense 26,800

Actual Value of Fringe Benefit given to officers 150,000

Other Deductible Business Expenses 324,100

Compute the following:

a. Taxable gross income subject to basic tax

b. Total allowed deductions including charitable contributions

c. Taxable Net Income & Income Tax Due

PROBLEM 35

A corporation had the following data in 2019:

Gross Profit from Sales P1,500,000

Other Income 150,000

Charitable Contribution subject to limitation 46,000

Other Business Expenses 970,000

Compute the following:

a. Allowed Charitable Contribution

b. Minimum Corporate Income Tax

c. Basic Corporate Income Tax

PROBLEM 36

A domestic corporation had the following data in 2019:

Gross Income P5,600,000

Business Expenses 4,100,000

Net Operating Loss in 2018 250,000

Compute the following:

a. Taxable Net Income

b. Basic Corporate Income Tax

c. Minimum Corporate Income Tax