QUESTIONS
MEDIUM - QUESTION NO. 1
60 SECONDS
During the same period the corporation also allows 20% discount
to senior citizens who buy goods from the Company. The discount
is on the P1,200,000.00 sales (part of the gross sales above)
summarized as below:
From the following data, compute the income tax still due from a
domestic corporation engaged in merchandising business. For the
calendar year 2014, the net income per books is P180,000.00 after
considering among others:
The net income per books should be reconciled with the provisions
of the Tax Code, meaning, items which are not taxable must be
excluded and items which are not deductible are to be added back.
Upon examination of the 2015 return, the BIR concludes that there
is an improper accumulation of profit. The corporation fails to show
proof to prove the contrary.