.Pedro earned and incurred the following income and expenses:Compensation (exclusive of mandatorycontributions)P200,000Mandatory contributions20,000Gross receipts from business500,000Cost of service150,000Operating expenses50,000Royalties from books40,000Personal expenses170,000Interest income from client notes8,000Compute the taxable income subject to the graduated tax rates.

Taxable income refers to the income which is used for determining the taxes owed through the company…

›.Pedro earned and incurred the following income and expenses: Compensation (exclusive of mandatory contributions) Mandatory contributions Gross receipts from business Cost of service Operating expenses Royalties from books P200,000 20,000 500,000 150,000 50,000 40,000

›.Pedro earned and incurred the following income and expenses: Compensation (exclusive of mandatory contributions) Mandatory contributions Gross receipts from business Cost of service Operating expenses Royalties from books P200,000 20,000 500,000 150,000 50,000 40,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

.Pedro earned and incurred the following income and expenses:
Compensation (exclusive of mandatory
contributions)
P200,000
Mandatory contributions
20,000
Gross receipts from business
500,000
Cost of service
150,000
Operating expenses
50,000
Royalties from books
40,000
Personal expenses
170,000
Interest income from client notes
8,000
Compute the taxable income subject to the graduated tax rates.

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