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3. Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008: Real property taxes paid on his beach resort including 100 as interest Value added tax Losses from fire but recovered 100,000 from Insurance Company Interest paid on his loan to his mother Membership dues paid to Integrated Bar of the Phil. 2,500 10,000 150,000 1,500 500

3. Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008: Real property taxes paid on his beach resort including 100 as interest Value added tax Losses from fire but recovered 100,000 from Insurance Company Interest paid on his loan to his mother Membership dues paid to Integrated Bar of the Phil. 2,500 10,000 150,000 1,500 500

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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Bad debts written off Yearly depreciation on car Office furniture bought on July 1, 2008, with an estimated life of 5 years Loss on sale of residential lot held for 2 years Entertaining sales supervisor and sales manager Salaries to office and business personnel 20,000 5,000 30,000 25,000 4,000 160,000 Bernardo received a cash gift from his Uncle amounting to 25,000 but was stolen. The bad debts in No. 6 above refer to an uncollectible account of a debtor who died without leaving any properties. Required: Compute Bernardo's allowable deductions for his 2008 income tax return and explain the items not allowed to be deducted.
Transcribed Image Text:Bad debts written off Yearly depreciation on car Office furniture bought on July 1, 2008, with an estimated life of 5 years Loss on sale of residential lot held for 2 years Entertaining sales supervisor and sales manager Salaries to office and business personnel 20,000 5,000 30,000 25,000 4,000 160,000 Bernardo received a cash gift from his Uncle amounting to 25,000 but was stolen. The bad debts in No. 6 above refer to an uncollectible account of a debtor who died without leaving any properties. Required: Compute Bernardo's allowable deductions for his 2008 income tax return and explain the items not allowed to be deducted.
3. Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008: Real property taxes paid on his beach resort including 100 as interest Value added tax Losses from fire but recovered 100,000 from Insurance Company Interest paid on his loan to his mother Membership dues paid to Integrated Bar of the Phil. 2,500 10,000 150,000 1,500 500
Transcribed Image Text:3. Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008: Real property taxes paid on his beach resort including 100 as interest Value added tax Losses from fire but recovered 100,000 from Insurance Company Interest paid on his loan to his mother Membership dues paid to Integrated Bar of the Phil. 2,500 10,000 150,000 1,500 500
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