WITH SOLUTION

Selective cumulative balances were taken from the records of ABC Co. a domestic corporation, in its fifth year of operation in 2010, which had an income tax refundable of P10,000 for a preceding year for which there is a certificate of tax credits.

Q1 Q2 Q3 Q4 Gross profit from sale 800.000 1.600,000 2.400,000 3.100,000 Capital gain on sale directly to buyer of shares of domestic corporation 50,000 50.000 50,000 100,000 Dividend from domestic 10,000 10,000 20,000 20,000 corporation Interests on Phil currency bank 5,000 10,000 15,000 20,000 dep Business expenses 600,000 1,200,000 1,700,000 2,100,000 Income tax withheld 15,000 35,000 65,000 115,000