Compute the income tax payable, if any. Relevant information: YOU are the Accountant of Pa-Mine Corporation (PMC) wh
Compute the income tax payable, if any. Relevant information: YOU are the Accountant of Pa-Mine Corporation (PMC) wh
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 46P
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Question
Compute the income tax payable, if any.
Relevant information:
YOU are the Accountant of Pa-Mine Corporation (PMC) which was established in 2015. PMC is a company engaged in the business of buying and selling merchandise.
PMC is registered and is under the jurisdiction of BIR RDO No. 32-Manila with assigned Taxpayer Identification No. 123-456-789-00000. Your TIN is 987-654-321-0000. PMC’s registered address is N. Reyes St., Sampaloc, Manila.
Additional information:
PMC chose itemized deduction
The financial records for taxable year 2021 of PMC showed the following:
Gross sales – Php 10,000,000
Cost of sales – Php 5,000,000
Expenses –
Salaries and wages of employees – Php 2,000,000
Depreciation – Php 500,000
Rent expense – Php 500,000
Utilities in office – Php 200,000
Gas and oil – Php 200,000
Representation expense – Php 50,000
Registration fees of car and other taxes – Php 50,000
3. Your clients withheld the following and gave you Form 2307:
1st quarter 2307 – Php 50,000
2nd quarter 2307 – Php 50,000
3rd quarter 2307 – Php 50,000
4th quarter 2307 – Php 150,000
4. Over-payment in 2020 is Php 100,000
5. Total payments during quarterly returns is Php 200,000
6. PMC chose to carry-over the excess, if any.
Disregard the penalty, if any.
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