Homework Help is Here – Start Your Trial Now!
Business
Accounting
A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated)             Dividends from ABC Corp. a domestic corp – Php 1,000,000             Dividends from XYZ Corp. a foreign corp* (dominant income is abroad) – Php 1,000,000             Interest income from long-term investments (6th year) – Php 1,000,000             Interest income from short-term deposits – Php 1,000,000             Raffle Prize (car)  – Php 1,000,000

A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated)             Dividends from ABC Corp. a domestic corp – Php 1,000,000             Dividends from XYZ Corp. a foreign corp* (dominant income is abroad) – Php 1,000,000             Interest income from long-term investments (6th year) – Php 1,000,000             Interest income from short-term deposits – Php 1,000,000             Raffle Prize (car)  – Php 1,000,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

16 A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated)

            Dividends from ABC Corp. a domestic corp – Php 1,000,000

            Dividends from XYZ Corp. a foreign corp* (dominant income is abroad) – Php 1,000,000

            Interest income from long-term investments (6th year) – Php 1,000,000

            Interest income from short-term deposits – Php 1,000,000

            Raffle Prize (car)  – Php 1,000,000

            Royalty – Php 1,000,000

*Assuming tax treaty rate is 10%

 

Compute the ordinary/active income if taxpayer is a resident citizen:

 

Group of answer choices
Php 3,000,000
Php 2,000,000
Php 6,000,000
Php 1,000,000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS