Assignment
ABC Humble Corporation had the following data for the year ended December 31, 2021.
Sales P 18,514,000
Cost of Sales 12,589,520
Income from rental 1,500,000
Interest income from bank deposits 215,000
Dividend income received from a domestic corporation 256,800
Deductions:
Amortization 125,600
Bad Debts 112,500
Charitable and other contributions 51,200
Depletion -
Entertainment, amusement and recreation 36,500
Fringe Benefits -
Losses 76,500
Pension Trust -
Rental 136,900
Research and Development -
Salaries, wages and allowances 1,124,550
SSS, Philhealth and HDMF Contributions 136,800
Taxes and Licenses 215,800
Transportation and Travel 12,300
Other expenses:
Professional fees 36,000
Repairs and maintenance 125,800
Gas and Oil 15,000
Office Supplies 5,400
Income tax payments under regular/normal rate from previous quarters 109,000
Creditable Tax Withheld BIR FORM 2307 from the previous quarters 311,500
Creditable Tax Withheld BIR FORM 2307 for the 4th quarter 185,000
Additional information:
The ABC Humble Corporation, a domestic corporation, is a trading company which also involves in rental business as its secondary business activities.
Date of incorporation or organization is November 21, 2016.
Total assets of the corporation is P125,000,100 as of December 31, 2021, excluding the value of land amounting to P5,700,000.
The company address is located at Brgy. Sabang Lipa Ciy, Batangas under RDO Code of 059, with registered tax identification number of 008-125-127-000.
The annual income tax return filing is for the calendar year ended December 31, 2021.
The method of deductions used by ABC Humble Corporation is itemized deductions.
The depreciation expense for the year ended 2021 is P120,000.
The MCIT rate to be used is 1%.
The normal income tax for the year 2020 is 150,000 but the minimum corporate income tax is 162,000.
Determine the following:
A. The total gross taxable income for the year ended December 31, 2021.
B. How much is the total of other expenses?
C. How much is the total allowable itemized deductions / expenses?
D. How much is the total tax credits?
E. How much is the Minimum Corporate Income Tax (MCIT) due?
F. Determine and compute the Net taxable Income. What is the amount of net taxable income?
G. How much is the net tax payable for the year ended December 31, 2021?