Reference no: EM132752762

PROBLEM 1 - A domestic corporation disclosed to us the following data for the year 2019:

Business Income in Philippines P860,000

Business Income Abroad 610,000

Business Expenses in Philippines 590,750

Business Expenses in Abroad 425,000

Additional Data:

a. 15% of the above Business Income from Philippines represents exempted income

b. 8% of the above Business Income from Philippines represents income subject to final tax

c. 12 % of the above business expenses abroad and in the Philippines are non-deductible items.

Required - Compute the Taxable Net Income & Income Tax Due.

PROBLEM 2 - A corporate taxpayer showed us its data for 2019 as follows:

Business Income - Philippines P960,000

Business Income - US 740,000

Business Income - Canada 425,000

Business Expenses - Philippines 718,500

Business Expenses - US 531,600

Business Expenses - Canada 312,400

Additional Data:

a. 23% of the amount of business expenses in Philippines is non-deductible.

b. The amount of business income includes income amounting to P17,500 which were subject to final taxes.

Required - Compute the Taxable Net Income & Income Tax Due if the corporation is:

a. domestic corporation

b. resident foreign corporation