Performance standards:Accomplish the BIR (Bureau of Internal Revenue) formsMELCS: Explain the procedure in the computation of gross taxable income and tax due.Mr. Sabado need to pay his tax. You are an agent hired by Mr. Sabado to compute his taxable income andtax due. The BIR agent will check and evaluate based on accuracy of the information prepared.Instructions:From the given information below compute the total taxable income and total income tax due on eachscenario.Mr. Sabado, Production Manager of M.A.R Corp., earned annual compensation in 2020 of P2,333,000, exclusive the 13h month and other benefits in the amount of P250,000 but net ofmandatory contributions to SSS and Philhealth. Aside from employment income, he owns aconvenience store, with gross sales of P3,555,000. His cost of sales and operating expenses areP1,500,000 and 800,000, respectively, and with non-operating income of P250,000.а.Mr. Sabado signified his intention to be taxed at 8% income tax rate on his income.b. Mr. Sabado did not opt for 8% income tax.

Gross taxable income refers to the total income earned by an individual or entity from various…

Answered: a. Mr. Sabado signified his intention…

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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a. Mr. Sabado signified his intention to be taxed at 8% income tax rate on his income. b. Mr. Sabado did not opt for 8% income tax.