Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University College
Pablo Borbon Campus Logo
Rizal Avenue, Extension, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND INTERNATIONAL HOSPITALITY MANAGEMENT

BACHELOR OF SCIENCE IN ACCOUNTANCY

CATIBOG, MARYNISSA M.
BSA 3103

ACTIVITY
Tax 301 – Income Taxation
Income Taxes for Corporations

Directions: Present your answers and solutions in a document in PDF format. Highlight or encircle
your final answer. Upload in the Google Classroom on or before the set deadline.

Problem 1

Required:
1. The income tax due and payable for first quarter is
2. The income tax due and payable for second quarter is
3. The income tax due and payable for third quarter is
4. The income tax due and payable for fourth quarter is

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total

Normal Income Tax 100,000 120,000 250,000 200,000 670,000
MCIT 80,000 250,000 100,000 100,000 530,000
Income Tax Due 100,000 330,000 470,000 670,000
Less: Tax credits
MCIT - Prior Year 30,000 30,000 30,000
Excess cwt - Prior Year 10,000 10,000 10,000 10,000
1st Quarter CWT 20,000 20,000 20,000 20,000
2nd Quarter CWT 30,000 30,000 30,000
3rd Quarter CWT 40,000 40,000
4th Quarter CWT 35,000
1st Quarter Tax
Payment 40,000 40,000 40,000
2nd Quarter Tax
Payment 230,000 230,000
3rd Quarter Tax
Payment 70,000
Total Tax Credits 60,000 100,000 400,000 505,000
Income Tax Payable 40,000 230,000 70,000 165,000
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University College
Pablo Borbon Campus Logo
Rizal Avenue, Extension, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND INTERNATIONAL HOSPITALITY MANAGEMENT

BACHELOR OF SCIENCE IN ACCOUNTANCY

Problem 2
Required:
1. Gross Income from Operations
2. Total Gross Income
3. Taxable Income
4. Normal Tax for 2022
5. Minimum Corporate Income Tax for 2022
6. Income Tax due for 2022
7. Income Tax still due for 2022
8. Final Taxes on:
a. Interest Income
b. Dividends
c. Sale on Real Property
Gross Sales 8,876,400
Less: Sales Discount 150,000
Net Income 8,726,400
Less: Cost of Sales 3,450,865
Total Gross Income from Operation 5,275,535
Other Income 2,150,070
Total Gross Income 7,425,605
Operating Expense 6,827,700
Taxable Income 597,905
Multiply by RCIT rate 25%
Normal Tax for 2022 149,476.25

Total Gross Income 7,425,605

Multiply by MCIT rate 1%
Minimum Corporate Income Tax for
2022 74,256.05

Income Tax Due for 2022 149,476.25

Less: Tax credits
1st Quarter Tax Payment 17,650
2nd Quarter Tax Payment 12,092
3rd Quarter Tax Payment 32,107
Unclaimed Creditable Withholding
Taxes 56,980
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University College
Pablo Borbon Campus Logo
Rizal Avenue, Extension, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND INTERNATIONAL HOSPITALITY MANAGEMENT

BACHELOR OF SCIENCE IN ACCOUNTANCY

Excess MCIT – 2021 42,378

-
Income Tax still due for 2022 11,730.75
Interest Income 35,162
Final Tax Rate 20%

Final Tax on Interest Income 7,032.40

Dividends 17,900
Final Tax Rate 0%
Final Tax on Dividends -

Sales on Real Property 6,301,200

Final Tax Rate 6%
Final Tax on Sales on Real Property 378,072.00

Problem 3

Required:
1. Income tax payable for the 1st quarter
2. Income tax payable for the 2nd quarter
3. Gross Profit for the second quarter
4. Total Normal Taxable Income for the 2 quarters
5. Excess MCIT claimed for the 2nd quarter

1st Quarter 2nd Quarter

Normal Income Tax 10,000 12,000
MCIT 8,000 25,000
Income Tax Due 10,000 33,000
Less:
MCIT - Prior Year 3,000
Excess CWT - Prior
Year 1,000 1,000
1st Quarter CWT 2,000 2,000
2nd Quarter CWT 3,000
1st Quarter Tax
Payments 4,000
Total Tax Credits 6,000 10,000
Income Tax Payable 4,000 23,000
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University College
Pablo Borbon Campus Logo
Rizal Avenue, Extension, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND INTERNATIONAL HOSPITALITY MANAGEMENT

BACHELOR OF SCIENCE IN ACCOUNTANCY

MCIT - 2nd Quarter 33,000

Divided by: MCIT Rate 1%
Gross Profit - 2nd Year 3,300,000.00

Normal Income Tax for 1st and 2nd

Quarter 22,000
Divided by RCIT Rate 25%
Total Normal Taxable Income for the
2 Quarters 88,000

Excess MCIT Claimed for the 2nd

Quarter Zero

Problem 4

Required:
1. Income Tax payable in 2021
2. NOLCO for 2021
3. Taxable Income for 2022
4. Income Tax Due for 2022
5. Income Tax Payable in 2022

2021 2022
Gross Income P3,400,000 P3,960,000
Less: Expenses -3,800,000 3,100,000
Net Income/NOLCO 2021 (P400,000) P860,000
Less: NOLCO (2021) application -400,000
Taxable Income - 460,000
RCIT (Taxable Income x 25%) 115,000
MCIT (Gross Income x 1%) - -
Income Tax Due (whichever is higher) - 115,000
Income Tax Payable 0 115,000
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University College
Pablo Borbon Campus Logo
Rizal Avenue, Extension, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND INTERNATIONAL HOSPITALITY MANAGEMENT

BACHELOR OF SCIENCE IN ACCOUNTANCY

Problem 5

Required:
1. Income Tax Due at the end of the First Quarter
2. Normal Income Tax for the Second Quarter
3. Normal tax taxable income for the third quarter
4. Income Tax Due at the end of the year

3rd
1st Quarter 2nd Quarter Quarter Annual
Sales 180,000 405,000 675,000 1,080,000
Cost of Sales 45,000 108,000 166,500 270,000
Gross Income from
Operation 135,000 297,000 508,500 810,000
Add: Rent Income 7,200 14,400 21,600 28,800
Total Gross Income 142,200 311,400 530,100 838,800
Less: Allowable Deduction
Business Expenses 108,000 234,000 369,000 657,000
Municipal taxes 4,500 9,000 13,500 18,000
Taxable Income 29,700 68,400 147,600 163,800
Multiply by RCIT rate 25% 25% 25% 25%
Income Tax Due 7,425 17,100 36,900 40,950