What is taxable year? The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net income is computed. What is Calendar Year? The term "Calendar Year" means a 12-month period (or one-year period) that begins on January 1 and ends on December 31. What is Fiscal Year? The term "Fiscal Year" means an accounting period of twelve (12) months ending on the last day of any month other than December. The accounting period for individual taxpayer is always on the basis of the calendar year; whereas, non-individual (corporate) taxpayer has the option to adopt a fiscal year or calendar year of accounting period. PROPRIETARY EDUCATIONAL INSTITUTIONS EXERCISES 1. Assume that GTD School is a non-profit private educational institution with permit to operate from DepED, maintained and administered by DEO Corporation, a private domestic corporation duly registered with the SEC. GTD School adopts a Calendar Year accounting period. Its Financial Statements for year 2022 showed the following: Education-related activities - Gross receipts Cost of services Operating expenses Unrelated business activities - 7,500,000 4,000,000 2,000,000 Gross sales Cost of sales Operating expenses 2,500,000 1,200,000 500,000 Total assets excluding value of land where its business entity is located 10,000,000 2. Assume the facts in the preceding exercise 1 pertain to taxable year 2024. Compute income tax payable by GTD School for year 2024. 3. Assume that MGM School is a non-profit private educational institution with permit to operate from DepED, maintained and administered by RSB Corporation, a private domestic corporation duly registered with the SEC. MGM School adopts a Calendar Year accounting period. Its Financial Statements for year 2022 showed the following: Education-related activities- Gross receipts Cost of services Operating expenses Unrelated business activities- Gross sales 20,000,000 15,000,000 2,500,000. 10,000,000 4,500,000 3,000,000 Cost of sales Operating expenses Total assets excluding value of land where its business entity is located 50,000,000 Required: Compute income tax payable by MGM School for year 2022. Education-related activities - Gross receipts Cost of services 20,000,000 15,000,000 Operating expenses Unrelated business activities- 1,800,000 Gross sales Cost of sales Operating expenses 10,000,000 4,500,000 3,200,000 Total assets excluding value of land where its business entity is located 50,000,000 4. Assume that NED School is a non-profit private educational institution with permit to operate from DepEd, maintained and administered by RDD Corporation, a private domestic corporation duly registered with the SEC. NED School adopts a Fiscal Year accounting period. Its Financial Statements for FY ending June 30, 2023 showed the following: Education-related activities- Gross receipts Cost of services Operating expenses Unrelated business activities- Gross sales Cost of sales Operating expenses 20,000,000 15,000,000 1,800,000 10,000,000 4,500,000 3,200,000 Total assets excluding value of land where its business entity is located 50,000,000 Required: Compute income tax payable by NED School for FY ending June 30, 2023. Education-related activities - Gross receipts Cost of services Operating expenses Unrelated business activities- 20,000,000 15,000,000 2,500,000 Gross sales Cost of sales Operating expenses 10,000,000 4,500,000 3,000,000 Total assets excluding value of land where its business entity is located 50,000,000