In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth. Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000. What would be Malakas’s total income tax due if he did not avail of the 8% income tax rate on gross sales plus non-operating income arising from his business? Group of choices P696,969 P1,650,920 P1,549,360 P1,202,340
In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth. Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000. What would be Malakas’s total income tax due if he did not avail of the 8% income tax rate on gross sales plus non-operating income arising from his business? Group of choices P696,969 P1,650,920 P1,549,360 P1,202,340
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth.
Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000.
What would be Malakas’s total income tax due if he did not avail of the 8% income tax rate on gross sales plus non-operating income arising from his business?
Group of choices
P696,969
P1,650,920
P1,549,360
P1,202,340
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