Assuming the taxable year is 2018, determine the taxable net income if the Carlo is a: (tax reviewer page 77) 4. Resident Citizen? 5. Nonresident Citizen? 6. Non Resident Alien engaged in trade or business? 7. Non Resident Alien not engaged in trade or business?
Assuming the taxable year is 2018, determine the taxable net income if the Carlo is a: (tax reviewer page 77) 4. Resident Citizen? 5. Nonresident Citizen? 6. Non Resident Alien engaged in trade or business? 7. Non Resident Alien not engaged in trade or business?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The problem is in the attached picture below.
NOTE:
Make sure that your solutions are complete, meaning with label and numbers. For example, do not just write P1,000,000 but instead, write House and Lot P1,000,000.

Transcribed Image Text:Carlo, married, received the following income:
Rent Income, PH
Rent, Hongkong
Interest, peso deposit, Philippine bank
Interest, US $ deposit, in Philippine Bank under FCDS (amount in pesos)
Interest, deposit in Hongkong bank
Prize won in a local contest
Prize won in a local lottery
PCSO/Lotto Winnings
Prize won in contest in U.S.
Lotto winning in U.S.
Dividend from a domestic company
P1,000,000
200,000
100,000
420,000
50,000
8,000
2,000,000
2,000,000
300,000
100,000
600,000
Assuming the taxable year is 2018, determine the taxable net income if the Carlo is a: (tax reviewer page
77)
4. Resident Citizen?
5. Nonresident Citizen?
6. Non Resident Alien engaged in trade or business?
7. Non Resident Alien not engaged in trade or business?
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Step 1: Define taxable income:
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VIEWStep 3: Determine the taxable income of nonresident citizen:
VIEWStep 4: Determine the taxable income of non-resident alien:
VIEWStep 5: Determine the taxable income of non-resident alien not engaged in trade and business:
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