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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.

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.

FINANCIAL ACCOUNTING
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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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
Transcribed Image Text: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
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