### Financial Breakdown for a Multinational Business #### Income Sources and Expenses This section provides a detailed breakdown of various income sources and expenses for a multinational business with operations in the Philippines and Singapore. The figures are represented in primary currency units (presumably PHP or SGD). 1. **Gross Business Income:** - Philippines: 4,000,000 - Singapore: 3,000,000 2. **Business Expenses:** - Philippines: 1,500,000 - Singapore: 1,750,000 3. **Interest Income:** - From BPI (Bank of the Philippine Islands), Philippines: 90,000 - From BPI (Bank of the Philippine Islands), Singapore: 70,000 4. **Dividend Income:** - From a Domestic Corporation: 150,000 - From a Resident Foreign Corporation: 75,000 - From a Non-Resident Foreign Corporation: 125,000 5. **Other Interest Income:** - Received from a Depository FCDU (Foreign Currency Deposit Unit): 50,000 6. **Winnings:** - Philippine Lotto Winnings: 10,000 - Philippine Charity Sweepstakes Winnings: 400,000 - Singapore Sweepstakes Winnings: 250,000 - Other Winnings (From Philippines): 50,000 7. **Prize Winnings:** - Robinsons Manila: 9,000 - SM Manila: 20,000 - Singapore: 30,000 8. **Interest Income from Long-term Investments:** - General Long-term Investment: 10,000 - Long-term Investment (Pre-terminated on 2nd Year): 5,000 #### Analysis This breakdown reveals multiple revenue streams including business operations, interest incomes, dividends, lottery, and other sweepstakes winnings. It reflects the financial complexity and diversified income portfolio of a business operating in multiple countries. The reported business expenses are also significant, impacting the net income. Understanding these figures is essential for financial planning, tax calculations, and strategic expansion into other markets. ### Summary of Income Sources #### 1. Share Dividend from San Miguel Corporation - **Amount:** 7,500 #### 2. Interest Income from Loans Receivable - **Amount:** 10,000 #### 3. Royalty Income from Franchise - **Amount:** 100,000 #### 4. Royalty Income from Books - **Amount:** 50,000 This table identifies various sources of income with their respective amounts. - The individual or entity receives a shared dividend of 7,500 from San Miguel Corporation. - They earn an interest income of 10,000 from loans receivable. - Royalties from a franchise contribute significantly to the income, amounting to 100,000. - Additionally, royalties from book sales provide an income of 50,000. These different streams of income highlight the diversification of revenue sources, which can be critical for financial stability and growth.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Determine the amount of final withholding tax (include the ordinary income) assuming the individual is classified as NRA-NETB.

### Financial Breakdown for a Multinational Business

#### Income Sources and Expenses

This section provides a detailed breakdown of various income sources and expenses for a multinational business with operations in the Philippines and Singapore. The figures are represented in primary currency units (presumably PHP or SGD).

1. **Gross Business Income:**
   - Philippines: 4,000,000
   - Singapore: 3,000,000

2. **Business Expenses:**
   - Philippines: 1,500,000
   - Singapore: 1,750,000

3. **Interest Income:**
   - From BPI (Bank of the Philippine Islands), Philippines: 90,000
   - From BPI (Bank of the Philippine Islands), Singapore: 70,000

4. **Dividend Income:**
   - From a Domestic Corporation: 150,000
   - From a Resident Foreign Corporation: 75,000
   - From a Non-Resident Foreign Corporation: 125,000

5. **Other Interest Income:**
   - Received from a Depository FCDU (Foreign Currency Deposit Unit): 50,000

6. **Winnings:**
   - Philippine Lotto Winnings: 10,000
   - Philippine Charity Sweepstakes Winnings: 400,000
   - Singapore Sweepstakes Winnings: 250,000
   - Other Winnings (From Philippines): 50,000

7. **Prize Winnings:**
   - Robinsons Manila: 9,000
   - SM Manila: 20,000
   - Singapore: 30,000

8. **Interest Income from Long-term Investments:**
   - General Long-term Investment: 10,000
   - Long-term Investment (Pre-terminated on 2nd Year): 5,000

#### Analysis

This breakdown reveals multiple revenue streams including business operations, interest incomes, dividends, lottery, and other sweepstakes winnings. It reflects the financial complexity and diversified income portfolio of a business operating in multiple countries. The reported business expenses are also significant, impacting the net income.

Understanding these figures is essential for financial planning, tax calculations, and strategic expansion into other markets.
Transcribed Image Text:### Financial Breakdown for a Multinational Business #### Income Sources and Expenses This section provides a detailed breakdown of various income sources and expenses for a multinational business with operations in the Philippines and Singapore. The figures are represented in primary currency units (presumably PHP or SGD). 1. **Gross Business Income:** - Philippines: 4,000,000 - Singapore: 3,000,000 2. **Business Expenses:** - Philippines: 1,500,000 - Singapore: 1,750,000 3. **Interest Income:** - From BPI (Bank of the Philippine Islands), Philippines: 90,000 - From BPI (Bank of the Philippine Islands), Singapore: 70,000 4. **Dividend Income:** - From a Domestic Corporation: 150,000 - From a Resident Foreign Corporation: 75,000 - From a Non-Resident Foreign Corporation: 125,000 5. **Other Interest Income:** - Received from a Depository FCDU (Foreign Currency Deposit Unit): 50,000 6. **Winnings:** - Philippine Lotto Winnings: 10,000 - Philippine Charity Sweepstakes Winnings: 400,000 - Singapore Sweepstakes Winnings: 250,000 - Other Winnings (From Philippines): 50,000 7. **Prize Winnings:** - Robinsons Manila: 9,000 - SM Manila: 20,000 - Singapore: 30,000 8. **Interest Income from Long-term Investments:** - General Long-term Investment: 10,000 - Long-term Investment (Pre-terminated on 2nd Year): 5,000 #### Analysis This breakdown reveals multiple revenue streams including business operations, interest incomes, dividends, lottery, and other sweepstakes winnings. It reflects the financial complexity and diversified income portfolio of a business operating in multiple countries. The reported business expenses are also significant, impacting the net income. Understanding these figures is essential for financial planning, tax calculations, and strategic expansion into other markets.
### Summary of Income Sources

#### 1. Share Dividend from San Miguel Corporation
- **Amount:** 7,500

#### 2. Interest Income from Loans Receivable
- **Amount:** 10,000

#### 3. Royalty Income from Franchise
- **Amount:** 100,000

#### 4. Royalty Income from Books
- **Amount:** 50,000

This table identifies various sources of income with their respective amounts. 

- The individual or entity receives a shared dividend of 7,500 from San Miguel Corporation.
- They earn an interest income of 10,000 from loans receivable.
- Royalties from a franchise contribute significantly to the income, amounting to 100,000.
- Additionally, royalties from book sales provide an income of 50,000.

These different streams of income highlight the diversification of revenue sources, which can be critical for financial stability and growth.
Transcribed Image Text:### Summary of Income Sources #### 1. Share Dividend from San Miguel Corporation - **Amount:** 7,500 #### 2. Interest Income from Loans Receivable - **Amount:** 10,000 #### 3. Royalty Income from Franchise - **Amount:** 100,000 #### 4. Royalty Income from Books - **Amount:** 50,000 This table identifies various sources of income with their respective amounts. - The individual or entity receives a shared dividend of 7,500 from San Miguel Corporation. - They earn an interest income of 10,000 from loans receivable. - Royalties from a franchise contribute significantly to the income, amounting to 100,000. - Additionally, royalties from book sales provide an income of 50,000. These different streams of income highlight the diversification of revenue sources, which can be critical for financial stability and growth.
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