A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital P 10,000,000 Accumulated Earnings – unrestricted 8,000,000 Accumulated Earnings – restricted 2,000,000 Income tax per annual income tax return 300,000 Income tax for the first three quarters 240,000 Final tax on passive income at 20% 60,000 Capital gains tax at 15% 45,000 Compute the amount of improperly accumulated earnings tax (IAET).
A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital P 10,000,000 Accumulated Earnings – unrestricted 8,000,000 Accumulated Earnings – restricted 2,000,000 Income tax per annual income tax return 300,000 Income tax for the first three quarters 240,000 Final tax on passive income at 20% 60,000 Capital gains tax at 15% 45,000 Compute the amount of improperly accumulated earnings tax (IAET).
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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. A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following
data:
Paid-up capital P 10,000,000
Accumulated Earnings – unrestricted 8,000,000
Accumulated Earnings – restricted 2,000,000
Income tax per annual income tax return 300,000
Income tax for the first three quarters 240,000
Final tax on passive income at 20% 60,000
Capital gains tax at 15% 45,000
Compute the amount of improperly accumulated earnings tax (IAET).
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