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    Packing Industry Income Tax

    Uploaded by

    seokbyeon11
    fbt

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    © All Rights Reserved
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    Packing Industry Income Tax

    Uploaded by

    seokbyeon11
    127 views2 pages
    fbt

    Copyright

    © © All Rights Reserved

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    fbt

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    127 views2 pages

    Packing Industry Income Tax

    Uploaded by

    seokbyeon11
    fbt

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Packing Industry, a VAT registered owned by a resident citizen, have the certain information on its

    adjusted trial balance and you are to audit such for the year 2023:
    Debit Credit
    Cash 10,403,000 6,779,500
    Accounts Receivable 1,350,000
    Creditable Withholding Tax Expanded 200,000
    Service Revenue 10,000,000
    Discount for Senior Citizen and PWD 150,000
    Cost of Services 3,000,000
    Wagering Gains 400,000
    Salaries and Wages 1,800,000
    HDMF Contribution Expense 110,000
    PHIC Contribution Expense 135,000
    SSS Contribution Expense 145,000
    13th month pay expense 150,000
    Fringe Benefit Expense- Lease for Manager 120,000
    Fringe Benefit Expense- Lease for Clerks 45,000
    Foreign Business Travel Expense- First Class ticket 10,000
    (100$, 1$= 50)
    Foreign Business Travel Expense- Lodging 100,000
    (400$, 1$= 50)
    Foreign Business Travel Expense- Inland 10,000
    (200$, 1$= 50)
    Productivity Bonus Expense 75,000
    Representation Expense 80,000
    Charitable Contribution- Public Use 1,200,000
    Charitable Contribution- Public School 600,000
    Charitable Contribution- Priority Project 425,000
    Local Business Travel Expense- Rank and File 50,000
    Local Business Travel Expense- Supervisor 48,000
    Utilities Expense 190,000
    Interest Income, Bank Deposit 32,000
    Interest Income, Loan Receivable 18,000
    Interest Expense 66,000
    Bad Debts Expense 80,000
    Allowance for Bad Debts 40,000 130,000
    Wagering Loss 500,000
    Dividend Income from Foreign Corporation 135,000
    Dividend Income from Domestic Corporation 95,000
    Royalty Income- Active Royalty 40,000
    Royalty Income- Passive Royalty 100,000
    PCSO winnings 9,000
    Prize won from a raffle 8,000
    Prize won from a local contest 16,000
    Repairs and Maintenance 175,000
    Depreciation Expense 430,000
    Rent Income 400,000
    Gain on Sale of Land owned and used by business (2020) 80,000
    Gain on Sale of Car owned and used by business (2021) 73,000
    Real Property Taxes for 2023 paid 75,500
    Property, Plant and Equipment 5,000,000 250,000
    Accumulated Depreciation 200,000 430,000
    Pension Trust Contributions Expense 500,000
    Research and Development 420,000
    Additional Information:
    1. Income that are subject to Final Taxes are recorded at net of taxes
    2. 10% of Salaries and Wages are for PWD- above poverty level and 5% of Salaries and Wages are
    for Senior Citizen- Below Poverty level
    3. 20% of Depreciation is allotted for a car owned by the company with the cost of P3,000,000 and
    15% of repairs and maintenance is allotted to the same car
    4. The lessee made a permanent improvement on the leased property on 2023 with a cost of
    P300,000. The lease term was 20 years which started on 2019 with a useful life of 10 years. The
    owner stated that he wants to use the spread-out method.
    5. 60% of the Pension Trust Contribution is for the past service cost while the remaining is allocated
    for the current service cost
    6. Sales worth P750,000 is allocated for sales to senior citizens and PWDs
    7. Cost of Land sold is 420,000 and Car sold has cost of 127,000 and Accumulated Depreciation of
    50,000
    8. The company’s Research and Development capitalized for the current year is expected to be
    available in market on 2024. The company capitalized research and development on 2020
    amounting to 250,000 which was marketed and sold on the current year. All research and
    development are opt to amortize for 10 years.
    9. The following accounts have the following beginning balances:
    a. Cash- Dr. 1,000,000
    b. Accounts Receivable- Dr. 500,000
    Using the given information, compute for the correct taxable income of the taxpayer.

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