Compute the income tax due in 2021.A. 50,000B. 800,000C. 290,000D. 400,000 GIVEN:• Taxpayer is a proprietary educational institution.• Taxable period is 2021.• Financial data:RelatedUnrelatedActivitiesActivitiesGross IncomeExpensesNetP35,000,00010,000,00025,000,000P5,000,0001,000,0004,000,000

The proprietary educational institutions are the entities that have issued permits based on the…

Answered: Compute the income tax due in 2021. A.…

Business

Accounting

Compute the income tax due in 2021. A. 50,000 B. 800,000 C. 290,000 D. 400,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter18: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 5DQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Compute the income tax due in 2021.

A. 50,000
B. 800,000
C. 290,000
D. 400,000

GIVEN:
• Taxpayer is a proprietary educational institution.
• Taxable period is 2021.
• Financial data:
Related
Unrelated
Activities
Activities
Gross Income
Expenses
Net
P35,000,000
10,000,000
25,000,000
P5,000,000
1,000,000
4,000,000

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