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 90,000 Stock dividend from a domestic corporation 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit 30,000 Royalty income in general 40,000 Prizes from contest won PCSO winnings 13th month pay Christmas bonus Mid-year bonus 5,000 8,000 50,000 22,000 16,000 Compensation on damages from injuries and sickness Proceeds from life insurance coverage of his deceased father 100,000 250,000 Vacation and sick leave pay Proceeds from his life insurance (70,000 represents his total contribution) 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 70,000 before write-off) 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.
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 90,000 Stock dividend from a domestic corporation 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit 30,000 Royalty income in general 40,000 Prizes from contest won PCSO winnings 13th month pay Christmas bonus Mid-year bonus 5,000 8,000 50,000 22,000 16,000 Compensation on damages from injuries and sickness Proceeds from life insurance coverage of his deceased father 100,000 250,000 Vacation and sick leave pay Proceeds from his life insurance (70,000 represents his total contribution) 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 70,000 before write-off) 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Determine the taxable income for the year.
(PHILIPPINES)
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
90,000
Stock dividend from a domestic corporation
50,000
Cash dividend from resident foreign corporation
70,000
Interest from savings deposit
30,000
Royalty income in general
Prizes from contest won
40,000
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
100,000
250,000
50,000
Vacation and sick leave pay
Proceeds from his life insurance (70,000 represents his total contribution)
150,000
Unused monetized vacation leave in excess of 10 days allowed de minimis
15,000
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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