etired from employment at the age of 48 because he was already qualified under his employer’s retirement plan duly registered with the BIR. He rendered 20 years in service at the time of retirement. Is the retirement

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Romy retired from employment at the age of 48 because he was already qualified under his employer’s retirement plan duly registered with the BIR. He rendered 20 years in service at the time of retirement. Is the retirement benefit of Romy excluded from taxable gross income?

A. Yes, he rendered at least 10 years of service at the time of retirement.

B. Yes, his retirement is compulsory under the retirement benefit plan.

C. No, the retirement pay is taxable because Romy was only 48 years old at the time of retirement.
 
D. Answer not given.
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