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EXERCISE 9-5

9. The income tax payable for the 1st quarter


10. The income tax payable for the 2nd quarter
11. The income tax payable for the 3rd quarter
12. The annual income tax payable by Panday Corporation
13. Assuming that during the 4th quarter, the normal income and the
MCIT are 50,000 and 120,000, respectively, the annual income tax
payable
1st quarter 2nd Quarter 3rd Quarter Final Quarter #13

Income tax due 100,000 330,000 470,000 670,000 550,000


(higher) (NIT) (MCIT) (NIT) (NIT) (MCIT)

less: taxes withheld- 10,000 10,000 10,000 10,000 10,000


prior yr

Taxes withheld - 1st 20,000 20,000 20,000 20,000 20,000


quarter

Taxes withheld - 2nd 30,000 30,000 30,000 30,000


quarter

Taxes withheld - 3rd 40,000 40,000 40,000


quarter

Taxes withheld - 4th 35,000 35,000


quarter

Tax paid - 1st quarter 40,000 40,000 40,000 40,000

Tax paid - 2nd quarter 230,000 230,000 230,000

Tax paid - 3rd quarter 70,000 70,000

Excess MCIT prior year 30,000 30,000 30,000

Total

Net income tax due 40,000 230,000 70,000 165,000 75,000


(#9) (#10) (#11) (#12) (#13)
14. The income tax due if the cost of construction is treated as an
expense
15. The income tax due if the cost of construction is treated as a capital
expenditure
Gross Income 10,000,000
Less: Deductions
Operating Expense 6,400,000
Cost of Building 2,500,000 8,900,000
Taxable Income 1,100,000
Tax Rate 10%
Income Tax Due 110,000

Gross Income 10,000,000


Less: Deductions
Operating Expense 6,400,000
Depreciation (2500T/50x6/12) 25,000 6,425,000
Taxable Income 3,575,000
Tax Rate 10%
Income Tax Due 357,500
16. Letter B (The school building being rented by the school – from real
property tax)

17. Letter C ( A portion of the school building being leased to a fast


food chain – from real property tax)
18. How much is the income tax payable if the
taxpayer is a domestic corporation?
Gross Income, Philippines 740,000
Gross Income, USA 690,000
Royalties, USA 50,000
Total 1,480,000
Less: Deductions
Expenses, Philippines 425,000
Expenses, USA 450,000 875,000
Taxable Income 605,000
Rate of Tax 30%
Income Tax Due 181,500
19. How much is the income tax payable if the
taxpayer is a resident foreign corporation?
Gross Income, Philippines 740,000
Less: Expenses, Philippines 425,000
Taxable Income 315,000
Rate of Tax 30%
Income Tax Due 94,500
20. How much is the income tax payable if the
taxpayer is a nonresident foreign corporation?
Gross Income, Philippines 740,000
Interest on bank deposit with BDO 10,000
Total Gross Income 750,000
Rate of Tax 30%
Final Withholding Tax 225,000