The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000 Allowable expenses, P 2,800,000 Rental income, net of 5% withholding tax, P 475,000 Interest on money market placement (net), P 90,000 Inter-corporate dividends, P480,000 Additional information: Dividends paid, P 1,700,000 Payments, first three quarters, P 50,000 Ordinary shares, P700,000 Share premium, P200,000 Year 2019 Gross income, P 3,200,000 Expenses, P 3,000,000 Net Income, P200,000 Retained Earnings, P 500,000 How much is the improperly accumulated earnings tax in 2018 ?

The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000 Allowable expenses, P 2,800,000 Rental income, net of 5% withholding tax, P 475,000 Interest on money market placement (net), P 90,000 Inter-corporate dividends, P480,000 Additional information: Dividends paid, P 1,700,000 Payments, first three quarters, P 50,000 Ordinary shares, P700,000 Share premium, P200,000 Year 2019 Gross income, P 3,200,000 Expenses, P 3,000,000 Net Income, P200,000 Retained Earnings, P 500,000 How much is the improperly accumulated earnings tax in 2018 ?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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