Problem 5 - Taxes: Deductible taxes, VAT, capital expenditures Yakap Corporation, a VAT-registered entity had the following transactions during 20A1: - On January 1, 20A1, Yakap purchased equipment for P1,120,000, VAT inclusive, from VAT-registered supplier. The equipment had estimated useful life of 5 years. - From January 1, 20A1 to December 31, 20A1, Yakap purchased goods and services from VATregistered suppliers amounting to P5,600,000, VAT inclusive. The related goods and services were claimed as income tax deduction. - Yakap paid local business tax (LBT) of P300,000 to the local government unit (LGU) on January 20, 20A1 representing the first installment payment based on 20A0 revenues. It opted to pay LBT in four equal installments. The remaining three installments were paid on-time. It also paid license fees of P25,000 to the same LGU on January 20, 20A1. - Yakap paid real property tax (RPT) of P900,000 on March 31, 20A1 for its 20A1 tax liability. - On July 1, 20A1, Yakap imported equipment for P800,000, paid customs duties of P160,000 and VAT on importation of P115,200. The equipment had estimated useful life of 4 years. - On October 1, 20A1, Yakap rented a building for P95,000 monthly for one-year. The said rental is exclusive of 5% withholding taxes and 12% VAT. It paid advance rentals for six-months on the same date. Yakap also paid documentary stamp tax (DST) of P1,201 on the lease agreement. - On December 1, 20A1, Yakap also received the following tax refund from the BIR based on the cunmenn raunt danieinn. Yakap claimed the deductible taxes in previous years. These deductions resulted in reducing its income tax liability, except for excise tax since it was claimed as deduction in the period when Yakap was in a tax loss position. - Yakap paid income tax of P380,000 to Singaporean tax authorities for the income derived by its Branch in Singapore during 20A1. - Yakap paid income tax of P720,000 to the BIR in 20A1. is Yakap's policy to claim foreign income taxes as income tax deduction. equired: 1. Determine the deductible tax expense for the year ended December 31, 20A1. 2. Determine the other tax deductible items for the year ended December 31, 20A1. 3. Determine the amount of taxes which may qualify as capital expenditures for the year ended December 31, 20A1. 4. Determine the amount of tax refund which are subject to tax for the year ended December 31, 20A1. 5. Assume that Yakap is a VAT-exempt taxpayer, determine the deductible tax expense for the year ended December 31, 20A1. 6. Assume that Yakap is a VAT-exempt taxpayer, determine the other tax deductible items for the year ended December 31,20A1. 7. Assume that Yakap is a VAT-exempt taxpayer, determine the amount of taxes which may qualify as capital expenditures for the year ended December 31, 20A1. Problem 5 - Taxes: Deductible taxes, VAT, capital expenditures Yakap Corporation, a VAT-registered entity had the following transactions during 20A1: - On January 1, 20A1, Yakap purchased equipment for P1,120,000, VAT inclusive, from VAT-registered supplier. The equipment had estimated useful life of 5 years. - From January 1, 20A1 to December 31, 20A1, Yakap purchased goods and services from VATregistered suppliers amounting to P5,600,000, VAT inclusive. The related goods and services were claimed as income tax deduction. - Yakap paid local business tax (LBT) of P300,000 to the local government unit (LGU) on January 20, 20A1 representing the first installment payment based on 20A0 revenues. It opted to pay LBT in four equal installments. The remaining three installments were paid on-time. It also paid license fees of P25,000 to the same LGU on January 20, 20A1. - Yakap paid real property tax (RPT) of P900,000 on March 31, 20A1 for its 20A1 tax liability. - On July 1, 20A1, Yakap imported equipment for P800,000, paid customs duties of P160,000 and VAT on importation of P115,200. The equipment had estimated useful life of 4 years. - On October 1, 20A1, Yakap rented a building for P95,000 monthly for one-year. The said rental is exclusive of 5% withholding taxes and 12% VAT. It paid advance rentals for six-months on the same date. Yakap also paid documentary stamp tax (DST) of P1,201 on the lease agreement. - On December 1, 20A1, Yakap also received the following tax refund from the BIR based on the cunmenn raunt danieinn. Yakap claimed the deductible taxes in previous years. These deductions resulted in reducing its income tax liability, except for excise tax since it was claimed as deduction in the period when Yakap was in a tax loss position. - Yakap paid income tax of P380,000 to Singaporean tax authorities for the income derived by its Branch in Singapore during 20A1. - Yakap paid income tax of P720,000 to the BIR in 20A1. is Yakap's policy to claim foreign income taxes as income tax deduction. equired: 1. Determine the deductible tax expense for the year ended December 31, 20A1. 2. Determine the other tax deductible items for the year ended December 31, 20A1. 3. Determine the amount of taxes which may qualify as capital expenditures for the year ended December 31, 20A1. 4. Determine the amount of tax refund which are subject to tax for the year ended December 31, 20A1. 5. Assume that Yakap is a VAT-exempt taxpayer, determine the deductible tax expense for the year ended December 31, 20A1. 6. Assume that Yakap is a VAT-exempt taxpayer, determine the other tax deductible items for the year ended December 31,20A1. 7. Assume that Yakap is a VAT-exempt taxpayer, determine the amount of taxes which may qualify as capital expenditures for the year ended December 31, 20A1