1. Darlene earns franchise fees from her Hot Burger franchise. He also deals in various properties. Johnny realized the following gains in 2021: P500,000 royalty fees from local Hot Burger outlets P200,000 royalty fees from foreign Hot Burger outlets P100,000 gain from sales of equipment to foreign franchisers P200,000 gain from sales of equipment to local franchisers P50,000 gains from sale of investment in domestic stocks to foreign investors P40,000 gains from sale of investments in foreign stocks to Filipino investors Compute the total income earned from sources within the Philippines. 2. For data given on no. 1, compute the total income earned from sources outside the Philippines.

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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1. Darlene earns franchise fees from her Hot Burger franchise. He also deals in various properties. Johnny realized the following gains in 2021:

  • P500,000 royalty fees from local Hot Burger outlets
  • P200,000 royalty fees from foreign Hot Burger outlets
  • P100,000 gain from sales of equipment to foreign franchisers
  • P200,000 gain from sales of equipment to local franchisers
  • P50,000 gains from sale of investment in domestic stocks to foreign investors
  • P40,000 gains from sale of investments in foreign stocks to Filipino investors

Compute the total income earned from sources within the Philippines.

2. For data given on no. 1, compute the total income earned from sources outside the Philippines.

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