5. Lia is a cash basis self-employed air-conditioning repairman with 2022 gross business receipts of P2,000,000. Lia's cash disbursement were as follows:Air conditioning parts250,000Facebook Advertisement20,000Estimated national income taxes on self-employment income10,000Internet bill34,000Allowed charitable contribution170,000What amount should Lia declare as taxable income? A. P1,516,000B. P1,526,000C. P1,526,400D. P1,686,000

Taxable Income is the income over which tax is calculated as per Income tax Law. Taxable Income…

Answered: Lia is a cash basis self-employed…

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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5. Lia is a cash basis self-employed air-conditioning repairman with 2022 gross business receipts of P2,000,000. Lia's cash disbursement were as follows:

Air conditioning parts	250,000
Facebook Advertisement	20,000
Estimated national income taxes on self-employment income	10,000
Internet bill	34,000
Allowed charitable contribution	170,000

What amount should Lia declare as taxable income?

A. P1,516,000

B. P1,526,000

C. P1,526,400

D. P1,686,000

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