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Intax-Activity 1

The document provides information about the income, expenses, and tax liabilities of three corporations - a domestic corporation for tax years 2019-2021, Creative Corporation for tax year 2020, and another domestic corporation for tax years 2021-2024. It includes details of gross income, cost of sales, operating expenses, assets, net operating losses, and minimum corporate income tax for each corporation and asks questions to calculate their income tax liability for the given tax years.

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Venus Palmenco
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314 views

Intax-Activity 1

The document provides information about the income, expenses, and tax liabilities of three corporations - a domestic corporation for tax years 2019-2021, Creative Corporation for tax year 2020, and another domestic corporation for tax years 2021-2024. It includes details of gross income, cost of sales, operating expenses, assets, net operating losses, and minimum corporate income tax for each corporation and asks questions to calculate their income tax liability for the given tax years.

Uploaded by

Venus Palmenco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACTIVITY 1

PROBLEM 1
Use the following information for the next 6 items:

A domestic corporation has the following income and expenses for the year:
PHILIPPINES ABROAD
Gross Income P 100,000,000 P50,000,000
Cost of Sales P 40,000,000 P 20,000,000
Operating Expenses P 30,000,000 P 12,000,000

1. How much is the income tax due assuming the taxable year is 2019? ______________
2. How much is the income tax due assuming the taxable year is 2020? ______________
3. How much is the income tax due assuming the taxable year is 2021? ______________
4. How much is the income tax due assuming the taxable year is 2021, and the company total assets amounted to
P80,000,000 only? ______________

PROBLEM 2
CREATIVE Corporation, a domestic corporation, has the following income and expenses for 2020 taxable year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter


Gross sales 1,000,000 1,500,000 2,500,000 5,000,000
Cost of sales 600,000 800,000 1,400,000 2,200,000
Operating expenses 200,000 500,000 600,000 700,000

Additional data:
The company’s assets amounted to P25,000,000.

1. How much is the income tax due? ___________


2. Using the same data, and assuming further that the taxable year was 2021, how much is the correct income tax
due for 2021?
3. Using the same data, and assuming further that the company is a resident foreign corporation, how much is the
correct income tax due for 2021?

PROBLEM 3
A domestic corporation registered in 1998, provided the following data:

2021 2022 2023 2024


Gross sales 25,000,000 32,000,000 29,000,000 35,000,000
Cost of sales 18,000,000 20,000,000 19,000,000 18,000,000
Operating expenses 7,200,000 11,900,000 10,250,000 9,000,000

Additional information:
 Remaining Net Operating Loss (NOL) from 2018: P50,000
 NOL incurred in 2020: P180,000
 Excess MCIT over RCIT in 2018: 200,000
 Excess MCIT over RCIT in 2020: 80,000
 Assets: P90,000,000

The income tax payable in 2024 should be: ____________________

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