Compensation income Gross compensation income per month Total SSS premium contribution Total Philhealth premium contribution Total Pag-IBIG premium contributions Union dues P 50,000 2,400 3,000 1,200 2,000 Other benefits received by employees: Annual rice subsidy Annual clothing allowance Temporary housing for 3 months Christmas gift Christmas bonus 18,000 14,000 15,000 5,000 20,000 Other Income Rent Income per month from leasing a residential space Operating Expenses per month (with receipts) 50,000 25,000 REQUIRED: a. Compute the taxable compensation income during the year assuming that Mr. ABC is a rank-and-file employee.
Problem 1. Mr. ABC, a resident Filipino Citizen, shows his income and expenses during a calendar year:
Required:
1a. Compute the taxable compensation income during the year assuming that Mr. ABC is a rank-and-file employee.
1b. Compute the table compensation income subject to regular tax during the year assuming that Mr. ABC is a managerial employee.
1c. Compute the total taxable income subject to regular tax during the year assuming that Mr. ABC is a rank-and-file employee.
1d. Compute the total income tax due if Mr. ABC is a rank-and-file employee and he opted to use Optional Standard Deduction.
1e. Compute the total income tax due if Mr. ABC is a rank-and-file employee and he opted to use the 8% preferential tax.
![Compensation income
Gross compensation income per month
Total SSS premium contribution
Total Philhealth premium contribution
Total Pag-IBIG premium contributions
P 50,000
2,400
3,000
1,200
Union dues
2,000
Other benefits received by employees:
Annual rice subsidy
Annual clothing allowance
Temporary housing for 3 months
Christmas gift
Christmas bonus
18,000
14,000
15,000
5,000
20,000
Other Income
Rent Income per month from leasing a residential space
Operating Expenses per month (with receipts)
50,000
25,000
REQUIRED:
a. Compute the taxable compensation income during the year assuming that Mr. ABC
is a rank-and-file employee.
b. Compute the table compensation income subject to regular tax during the year
assuming that Mr. ABC is a managerial employee.
c. Compute the total taxable income subject to regular tax during the year assuming
that Mr. ABC is a rank-and-file employee.
d. Compute the total income tax due if Mr. ABC is a rank-and-file employee and he
opted to use Optional Standard Deduction.
e. Compute the total income tax due if Mr. ABC is a rank-and-file employee and he
opted to use the 8% preferential tax](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6d40f40-da42-4427-9be1-0728e2a2b3cb%2Fd5c1f206-cf66-41e4-be72-f0eb6e08352c%2F1846ab_processed.png&w=3840&q=75)
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