Which one of the following amounts represents the maximum amount of income on which CCT may claim the small business deduction?
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Caribbean Cruise Tours (CCT) is a Canadian controlled private corporation that operates a chain of travel agencies. In its fiscal year ending December 31, 2019, the Company had the following financial results:
Active business income earned in Canada $275,000
Active business income earned outside Canada 25,000
Taxable
Adjusted Aggregate Investment Income 100,000
Net Income For Tax Purposes $400,000
Taxable Income $325,000
The company paid no foreign taxes on its foreign operations. Its Adjusted Aggregate Investment Income was $48,000 in 2018. CCT has no associated corporations.
Which one of the following amounts represents the maximum amount of income on which CCT may claim the small business deduction?
A. $275,000.
B. $300,000.
C. $325,000.
D. $250,000.
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- The Tacurong Company has the following business income and expenses in year 2020: Gross Income From Philippine sources: From business P450,000 Dividends from domestic corporation 80,000 From Other Countries Saudi Arabia 180,000 Australia 75,000 Japan 190,000 Total Foreign Income Tax paid is P60,000 and Philippine quarterly income tax paid is P42,000. A. Compute for the income tax still due and payable if Tacurong is a domestic corporation. B. Compute for the tax still due and payable if Tacurong is a resident foreign corporation.Epic Inc. is a CCPC with a December 31 taxation year end. The following information relates to the 2021 taxation year. 1. The Company had Canadian source active business income of $237,000. Of this total, it was determined that $126,000 qualified as M&P profits under ITR 5200. 2. The Company received $25,500 in foreign investment income. This was net of $4,500 foreign income tax withheld. 3. Net income for 2021 is $277,000. This is made up of the $237,000 in active business income, the $30,000 in foreign investment income, and $10,000 in taxable capital gains. 4. Because of a $50,000 2019 non-capital loss balance that was claimed taxable income is $227,000. 5. The Company shares the annual business limit for the small business deduction with two other companies. Epic's allocated share of the business limit is $200,000. 6. Assume that the foreign tax credit for foreign investment income is equal to the amount withheld. 7. For the 2020 taxation year, the combined…Livingston Company is a wholly-owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in pounds (P), the company's functional currency. Financial statements for the year 2024 are as follows: Sales Income Statement For Year Ending December 31, 2024 Cost of goods sold Gross profit Less: Operating expenses Gain on sale of equipment Net income Statement of Retained Earnings P 270,000 (155,000) 115,000 (54,000) 10,000 P 71,000 For Year Ending December 31, 2024 Retained earnings, 1/1/24 Net income Less: Dividends Retained earnings, 12/31/24 P 216,000 71,000 (26,000) P 261,000 Balance Sheet December 31, 2024 Assets Cash Receivables Inventory Property, plant, and equipment (net) Total assets Liabilities and Equities Liabilities Common stock Retained earnings, 12/31/24 Total liabilities and equities Additional Information P 44,000 116,000 58,000 339,000 P 557,000 P 176,000 120,000 261,000 P 557,000 • The common stock was issued in 2017…
- "Easy lang ito" Corporation provided the following data for the calendar year ending December 31, 2012. ($1=P50) (See image) If it is a resident foreign corporation, its income tax is * Philippines P4,000,000 P2,500,000 Abroad $40,000 $15,000 $3,000 Gross Income Deductions Income tax paid a. P730,000 b. P450,000 c. P480,000 d. P525,000The following were taken from the statement of comprehensive income of a Resident Foreign Corporation for 2021: Sales P2,500,000 Cost of sales 1,500,000 Operating expenses (excluding bad debts) 500,000 Rental income (including P50,000 security deposit) 300,000 Provision for bad debts 50,000 Provision for income tax 75,000 Additional information: Accounts written off during the year P60,000 2021 recoveries on accounts receivable written off in 2020 (only P10,000 were recognized by the BIR as 20,000 reduction for 2020 income) Refunds for various local taxes paid in 2020 (50% of the amount recovered were recognized by the BIR as a 30,000 reduction for 2020 income) Refunds for overpayment of 2020 income tax 25,000 Refund of special assessment 12,000 Total assets 4,000,000 Compute the regular income taxYORMS Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a nonresident corporation. Group of answer choices P1,800,000.00 P500,000.00 P1,500,000.00 P600,000.00
- The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020?The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020? a. 72,000 b. 36,000 c. 51,000 d. 57,0001. BATO Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a domestic corporation with company assets amounting to more than P100M. Group of answer choices P837,500.00 P800,000.00 P492,500.00 P3,350,000.00 2. LENI Lugawan Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a resident corporation. Group of answer choices P600,000.00 P1,500,000.00 P500,000.00 3. YORMS Corp has the following data for the year ended December 31, 2021:…
- Below is a snip from the Financial Statement of Angat Bunay Corporation for 2019: Philippines: Sales 3,000,000 Sales Discount 500,000 Cost of Sales 1, 200,000 Operating Expenses 700,000 Interest Income on Bank Deposits 60,000 Japan: Gross Income 1,000,000 Business Expenses 700,000 Assuming the corporation already operated for more than 4 years. How much will be its tax due? Select the correct response: 180,000 46,000 270,000 390,000World Data Company was established in 2015. It has the following data for the current year: |Gross income, Philippines Expenses, Philippines Gross income, Canada Expenses, Canada Dividends from PLDT Interest on bank deposits 975,000 950,000 700,000 620,000 30,000 20,000 Assuming World Data is a resident foreign corporation, what is the income tax payable for the current year? 5,000 6,250 21,000 26,250 None of the above