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4,200,000 (Net Sales) - 1,200,000 (Cost of Sales) (3,000,000) Gross Income - 8,000,00 (Expenses) 2,200,000 (Taxable Income)

The document provides financial information for several years of a business including net sales, costs, expenses, income, and tax calculations. It calculates income tax for different years under normal tax and minimum corporate income tax. It also provides an example of total tax expense calculation for a 6th year of operation.

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Jessica Estolloso Goyagoy
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90 views4 pages

4,200,000 (Net Sales) - 1,200,000 (Cost of Sales) (3,000,000) Gross Income - 8,000,00 (Expenses) 2,200,000 (Taxable Income)

The document provides financial information for several years of a business including net sales, costs, expenses, income, and tax calculations. It calculates income tax for different years under normal tax and minimum corporate income tax. It also provides an example of total tax expense calculation for a 6th year of operation.

Uploaded by

Jessica Estolloso Goyagoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Net sales - 4,200,000

Cost of Sales 1,200,000


business expenses 800,000
interest income from deposit 10,000
dividend income from domestic corp 200,000

find income tax of the year

4,200,000 (net sales) - 1,200,000 (cost of sales) = (3,000,000) gross income –


8,000,00(expenses) =2,200,000 (taxable income)

GI from sales                   4,200,000

Gain on sale of an asset   100,000

Gross Income                    600,000

Business expenses             800,000

Net Income                         200,000

Tax :           NT  - (200,000 x 30%)       -  60,000

                  MCIT - (600,000 x 2%)      -   12,000


3rd yr 5th year

net sales 4,200,000 4,200,000

cost of sales 1,200,000 1,200,000

gross profit 3,000,000 3,000,000

less business expenses 800,000 800,000

net income 2,200,000 2,200,000

Normal tax rate at 3rd yr 30% 30%

tax due 660,000 NT 660,000

or

MCIT 2% of Gross income/profit MCIT 60,000

(3,000,000 x 2%)

therefore, Income tax due is: ===================> 660,000

Total tax expense:

Income tax 660,000

Final tax on passive income 10,000 x 20% 2,000

Total tax expense 662,000

Netsales – cost of sales


L Co, on 6th year of operation:
Gross profit from sales- 700,000
interest on Phil currency deposit- 10,000
cap gain on sale of land at selling price of 3,000,000
is 300,000
business expenses - 200,000
capital gain tax on land - 180,000
compute for the total tax expense for the year

700,000+300,000=500k
500kx(30%)=150k

150k income tax


150k
300,000x0.06=180k
10x.20=2000

150k+180k+2000=332,000k (total tax expense)

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