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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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Explain the items not allowed to be deducted
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