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Use income tax rates under CREATE in full for the taxable year. 1. . BPI Inc. reported the following income during the year: 0 Interest

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Use income tax rates under CREATE in full for the taxable year. 1. . BPI Inc. reported the following income during the year: 0 Interest income from clients P50,000,000 0 Administrative and sales salaries expense 8,000,000 0 Interest expense paid to depositors 5,000,000 0 Miscellaneous expense 1,000,000 How much is the gross income of BPI in its Annual Income Tax Return? 2. A corporation had a taxable net income of P4,500,000 and total assets of P100,000,000. It had the following data on expenses for the taxable year. 0 Salary expense, P12,000,000 - Rent expense, P2,400,000 0 Advertising expense, P600,000 o Depreciation expense, P500,000 0 Interest expense, P6,000,000 0 Interest income, net of 20% final tax, P2,400,000 What is the regular itemized deductions? 3. A Corporation incurs the following travel expenses: A. Plane tickets and hotel bills of its officers who were sent to business seminars: In Davao P 50,000 In Taiwan 200,000 B. Transportation expenses of its officers from home to office and vice versa as part oftheir employment contract, P68,000 from which final tax P32,000 was remitted. Transportation expenses of messengers from office to several clients' place at P40,000, inclusive of meals amounting to P25,000. What is the total allowable expense that could be claimed by A Corporation? 4. Assuming Coach is a domestic corporation which has P150 million total assets, compute its income tax payable if during the taxable year, it has: 0 gross sales of P6,000,000, 0 costs of goods sold of P2,000,000 0 operating expenses of P1,000,000 5. What would be the allowable deduction for a P10,000 contribution made by a resident citizen to a charitable institution from his P60,000 net income before contribution

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