In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000 for services rendered. The note will mature in 2019. However, it can be sold to a bank at a discount of 25%. The employer paid the promissory note in 2019. How much is the taxable income to be declared by Alonte on the promissory note in 2018 and 2019? 2018 2019 a. P 50,000 P 50,000 b. P 12,500 P 37,500 c. P 37,500 P 12,500 d. None P 50,000
In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000 for services rendered. The note will mature in 2019. However, it can be sold to a bank at a discount of 25%. The employer paid the promissory note in 2019. How much is the taxable income to be declared by Alonte on the promissory note in 2018 and 2019? 2018 2019 a. P 50,000 P 50,000 b. P 12,500 P 37,500 c. P 37,500 P 12,500 d. None P 50,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 39P
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In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000 for services rendered. The note will mature in 2019. However, it can be sold to a bank at a discount of 25%. The employer paid the promissory note in 2019. How much is the taxable income to be declared by Alonte on the promissory note in 2018 and 2019?
2018 2019
a. P 50,000 P 50,000
b. P 12,500 P 37,500
c. P 37,500 P 12,500
d. None P 50,000
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