Determine the taxable net income. An individual (Resident citizen) earning compensation and business incomeprovided the following income (within the Philippines unless otherwisestated) for the year:Basic salary (Net of withholding tax)Withholding tax on salaryDirector's feeBusiness incomeRental income (gross of 15,000 expanded withholding tax)400,00030,000300,000500,000300,000Business expenses150,000Cash dividend from domestic corporationStock dividend from a domestic corporationCash dividend from resident foreign corporationInterest from savings depositRoyalty income in generalPrizes from contest won90,00050,00070,00030,00040,0005,000PCSO winnings8,00013th month pay50,000Christmas bonus22,000Mid-year bonus16,000 Compensation on damages from injuries and sicknessProceeds from life insurance coverage of his deceased fatherVacation and sick leave payProceeds from his life insurance (70,000 represents his total100,000250,00050,000150,000contribution)Unused monetized vacation leave in excess of 10 days allowed deminimis benefitBad debt recovery (From a previous write-off with a net income of10,000 before write-off)15,00070,000Local tax refundPrizes received from a charitable activityProperties received by gratuitous transfer (income from property,8,000)20,00015,00020,000

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) Withholding tax on salary Director's fee Business income Rental income (gross of 15,000 expanded withholding tax) Business expenses Cash dividend from domestic corporation Stock dividend from a domestic corporation Cash dividend from resident foreign corporation Interest from savings deposit Royalty income in general Prizes from contest won 400,000 30,000 300,000 500,000 300,000 150,000 90,000 50,000 70,000 30,000 40,000 5,000 PCSO winnings 13th month pay 8,000 50,000

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) Withholding tax on salary Director's fee Business income Rental income (gross of 15,000 expanded withholding tax) Business expenses Cash dividend from domestic corporation Stock dividend from a domestic corporation Cash dividend from resident foreign corporation Interest from savings deposit Royalty income in general Prizes from contest won 400,000 30,000 300,000 500,000 300,000 150,000 90,000 50,000 70,000 30,000 40,000 5,000 PCSO winnings 13th month pay 8,000 50,000

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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