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Tax On Corporations Exercises Corporations
Tax On Corporations Exercises Corporations
Corporations
1. Nexus Global Solutions is a domestic corporation. It had the following data during
the year:
c. Which one between normal corporate income tax and MCIT should the company
pay? (5 points)
-The normal corporate income tax because it is higher between the two.
2. Vertin Global Solutions had the following data during the year:
ANS:
DC RFC NRFC
Sales, PH 30,000,000 30,000,000 30,000,000
Sales, USA 20,000,000
Gross Income 50,000,000 30,000,000 30,000,000
Less: Deductions:
PH Deductions 16,000,000 16,000,000 -
US Deductions 11,000,000 - -
Total allowable itemized 27,000,000 16,000,000 -
deductions
Taxable income 23,000,000 14,000,000 30,000,000
Normal corporate tax rate 30% 30% 30%
Corporate income tax 6,900,000 4,200,000 9,000,000