An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year: Basic salary (Net of withholding tax) 400,000 Withholding tax on salary 30,000 Director's fee 300,000 Business income 500,000 Rental income (gross of 15,000 expanded withholding tax) Business expenses 300,000 150,000 Cash dividend from domestic corporation Stock dividend from a domestic corporation 90,000 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit Royalty income in general 30,000 40,000 Prizes from contest won 5,000 PCSO winnings 8,000 13th month pay 50,000 Christmas bonus 22,000 Mid-year bonus 16,000 Compensation on damages from injuries and sickness Proceeds from life insurance coverage of his deceased father Vacation and sick leave pay Proceeds from his life insurance (70,000 represents his total contribution) 100,000 250,000 50,000 150,000 Unused monetized vacation leave in excess of 10 days allowed de minimis benefit 15,000 Bad debt recovery (From a previous write-off with a net income of 10,000 before write-off) 70,000 Local tax refund Prizes received from a charitable activity Properties received by gratuitous transfer (income from property, 8,000) 20,000 15,000 20,000
An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year: Basic salary (Net of withholding tax) 400,000 Withholding tax on salary 30,000 Director's fee 300,000 Business income 500,000 Rental income (gross of 15,000 expanded withholding tax) Business expenses 300,000 150,000 Cash dividend from domestic corporation Stock dividend from a domestic corporation 90,000 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit Royalty income in general 30,000 40,000 Prizes from contest won 5,000 PCSO winnings 8,000 13th month pay 50,000 Christmas bonus 22,000 Mid-year bonus 16,000 Compensation on damages from injuries and sickness Proceeds from life insurance coverage of his deceased father Vacation and sick leave pay Proceeds from his life insurance (70,000 represents his total contribution) 100,000 250,000 50,000 150,000 Unused monetized vacation leave in excess of 10 days allowed de minimis benefit 15,000 Bad debt recovery (From a previous write-off with a net income of 10,000 before write-off) 70,000 Local tax refund Prizes received from a charitable activity Properties received by gratuitous transfer (income from property, 8,000) 20,000 15,000 20,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:An individual (Resident citizen) earning
compensation and business income provided
the following income (within the Philippines
unless otherwise stated) for the year:
Basic salary (Net of withholding tax) 400,000
Withholding tax on salary
30,000
Director's fee
300,000
Business income
500,000
Rental income (gross of 15,000
expanded withholding tax)
300,000
Business expenses
150,000
Cash dividend from domestic
corporation
Stock dividend from a domestic
corporation
Cash dividend from resident foreign
corporation
Interest from savings deposit
90,000
50,000
70,000
30,000
Royalty income in general
40,000
Prizes from contest won
5,000
PCSO winnings
8,000
13th month pay
50,000
Christmas bonus
22,000
Mid-year bonus
16,000
Compensation on damages from
injuries and sickness
Proceeds from life insurance
coverage of his deceased father
Vacation and sick leave pay
100,000
250,000
50,000
Proceeds from his life insurance
(70,000 represents his total
contribution)
150,000
Unused monetized vacation leave
in excess of 10 days allowed de
15,000
minimis benefit
Bad debt recovery (From a previous
write-off with a net income of
10,000 before write-off)
70,000
Local tax refund
20,000
Prizes received from a charitable
activity
15,000
Properties received by gratuitous
transfer (income from property,
8,000)
20,000
Determine the taxable net income for the
year.
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