8. Larry is a mixed income earner. He is a self-employed resident citizen and currently the Finance Manager of Caterpillar Corporation. The following data were provided for 2018 taxable year. How much is her total income tax expense assuming he opted to be taxed at 8%?Compensation income1,800,000Sales2,800,000Cost of Sales1,125,000Business expense650,000Interest income from peso bank deposits80,000Interest income from bank deposits under FCDS120,000Gain on sale of land in the Philippines held as Capital Asset with cost P1,500,000 when zonal is P1,200,000500,000P321,500P788,500P808,000P652,000

Computation of Basic/Regular Income Tax: ●Compensation income Compensation Income P 1,800,000…

Answered: Larry is a mixed income earner. He is a…

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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8. Larry is a mixed income earner. He is a self-employed resident citizen and currently the Finance Manager of Caterpillar Corporation. The following data were provided for 2018 taxable year. How much is her total income tax expense assuming he opted to be taxed at 8%?

Compensation income	1,800,000
Sales	2,800,000
Cost of Sales	1,125,000
Business expense	650,000
Interest income from peso bank deposits	80,000
Interest income from bank deposits under FCDS	120,000
Gain on sale of land in the Philippines held as Capital Asset with cost P1,500,000 when zonal is P1,200,000	500,000

P321,500

P788,500

P808,000

P652,000

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