C. Individuals earning mixed income Assume the following are income and expenses of a resident citizen employee who is also engaged in business and/or practice of profession: Compensation income- Annual basic salary Allowances 13th month pay Christmas bonus Cash gift Productivity incentive Gross compensation income SSS and other contributions - SSS premium contribution PHIC contribution Pag-ibig contribution Total SSS and other contributions Income from business/profession - Sales/revenue/receipts/fees Cost of sales/services Operating expenses (e.g., salaries, wages, representation, travel, etc.) Other non-operating income Required: P 249,600 30,000 20,800 20,800 5,000 5,000 331,200 10,800 4,992 1,200 16,992 2,300,000 1,200,000 700,000 200,000 1. Compute income tax payable for year 2022, if NOT availing of the 8% tax rate. 2. Compute income tax payable for year 2022, if AVAILING of the 8% tax rate.
C. Individuals earning mixed income Assume the following are income and expenses of a resident citizen employee who is also engaged in business and/or practice of profession: Compensation income- Annual basic salary Allowances 13th month pay Christmas bonus Cash gift Productivity incentive Gross compensation income SSS and other contributions - SSS premium contribution PHIC contribution Pag-ibig contribution Total SSS and other contributions Income from business/profession - Sales/revenue/receipts/fees Cost of sales/services Operating expenses (e.g., salaries, wages, representation, travel, etc.) Other non-operating income Required: P 249,600 30,000 20,800 20,800 5,000 5,000 331,200 10,800 4,992 1,200 16,992 2,300,000 1,200,000 700,000 200,000 1. Compute income tax payable for year 2022, if NOT availing of the 8% tax rate. 2. Compute income tax payable for year 2022, if AVAILING of the 8% tax rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer number 1 and 2.
Transcribed Image Text:C. Individuals earning mixed income
Assume the following are income and expenses of a resident citizen
employee who is also engaged in business and/or practice of profession:
Compensation income -
Annual basic salary
Allowances
13th month pay
Christmas bonus
Cash gift
Productivity incentive
Gross compensation income
SSS and other contributions -
SSS premium contribution
PHIC contribution
Pag-ibig contribution
Total SSS and other contributions
Income from business/profession -
Sales/revenue/receipts/fees
Cost of sales/services
Operating expenses (e.g., salaries, wages, representation, travel, etc.)
Other non-operating income
Required:
P 249,600
30,000
20,800
20,800
5,000
5,000
331,200
10,800
4,992
1,200
16,992
2,300,000
1,200,000
700,000
200,000
1. Compute income tax payable for year 2022, if NOT availing of the 8%
tax rate.
2. Compute income tax payable for year 2022, if AVAILING of the 8% tax
rate.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education