Professional Documents
Culture Documents
as a
company president. He rendered 15 yrs. of service & decided to retire from his work & focus on their
own business “Ulingan”.
Other income
1. Rent Income
Annual Rental 24,000
Security Deposit 18,000
Real Estate tax 4,700
2. Income from leasehold improvements (Spread out Method)
Cost of building constructed 15M
Useful 5 yrs
Term of the lease 3 yrs
3. Capital Gains
Long Term Capital Gain 100,000
Short Term Capital Gain 10,000
Long Term Capital Loss 12,000
Short term Capital Loss 6,000
Expense:
Bad Debts 20,000
Charitable Contribution 100,000
Communication Exp. 5,000
Commission to employee 10,000
Depletion 10,000
Depreciation 30,000
Director’s fee 18,000
Fringe benefits 30,000
Fuel and oil 10,000
Insurance 20,000
Interest 19,500
Janitorial services 12,000
Losses 5,000
MC Fee 8,000
Miscellaneous 13,510
Office Supplies 5,000
Other services 11,000
Professional fees 4,500
Representation & entertainment 10,500
Research and Development 1,000
Royalties 1,500
Salaries & allowances 20,000
Security Services 18,000
SSS, GSIS, PhilHealth and other
Contribution 8,000
Taxes and licenses 9,900
NOLCO 12,350
Required:
Taxable Net Income
Net Taxable Income
Amount Subject to Final Tax
Final Tax Due
1-2.
Compensation Income Computation Rent Income
Annual Salary 840,000 Computation
Annual
Overtime Pay 252000 24,000
Rental
Retirement Fee 1,400,000 Real
13th Month Estate 4,700
pay 70,000 tax
Bonus 20,000 28,700
Less: Ceiling 82000 8,000
2,500,000 Income From Leasehold Improvement
Cost of building constructed 15M
Net Sales Computation Useful Life / 5 yrs
Cash Sales 1,533,500 3000000
Lease Term 3 yrs
Credit Sales 3,500,000
Sales Returns and 9000000
Allowances -255,350 Cost of building
constructed 15,000,000.00
Sales Discount -100,000
Accumualted
4,678,150 Dep. (9,000,000.00)
Carrying
Cost of Sales Computation Amount 6,000,000.00
Lease Term 3 yrs
Merchandise inv. Beg. 60,000
Net purchases 150,000
2,000,000.00
Merchandise inv. End -90,000
120,000 Interest Expense deductible
Interest
Capital Gains Computation Expense 19,500
Long Term Capital Gain 50000 Interest
Short Term Capital Gain 10,000 Income 33,000
Long Term Capital Loss -6000 x 33% 10890
Short term Capital Loss -6,000 8,610
48000
Itemized Deduction Computation Taxable Net Income Computation
Bad Debts 20,000 Compensation 2,500,000
Net Sales 4,678,150
Charitable Contribution 100,000
Interest on bank deposits USA 15,000
Communication Exp. 5,000 Capital Gains 48,000
Commission to employee 10,000 Leasehold improvement income 2,000,000
Depletion 10,000 Sale of house in US 399,000
Depreciation 30,000 Cost of Sales -120,000
Director’s fee 18,000 Itemized Dedcution -389,520
Fringe benefits 30,000 NOLCO -12,350
Fuel and oil 10,000 Taxable Net Income 9,118,280
Insurance 20,000 Basic Deduction -50,000
Interest 8,610 Addt'l Deduction -100,000
Janitorial services 12,000 Net Taxable Income 8,968,280
Losses 5,000
MC Fee 8,000 3-4.
Miscellaneous 13,510 Residential Privilege
FMV 12500000
Office Supplies 5,000 x
Multiply 5%
Other services 11,000
Actual Value 625000
Professional fees 4,500 x
Representation & Multiply 50%
10,500
entertainment
Monetary Value 312500
Research and Development 1,000 /
Royalties 1,500 Divide by GUM 68%
Salaries & allowances 20,000 Grossed Up monetary Value 459559
Security Services 18,000
SSS, GSIS, PhilHealth, HDMF House Hold Exp. Benefit
8,000
and other contribution House Maid 210000
Taxes and licenses 9,900 Personal Driver of wife 72000
389,520 House Gardener 96000
Driver of children 72000
Garbage dues 6000
Home Owners' Due 9600
Monetary Value 465600
Divide by GUM / 68%
Grossed Up monetary Value 684706
Subject Final Tax And Final Tax Due