Lorna is a mixed income earner. She is a self-employed resident citizen and currently the Finance Manager of Omega Corporation. The following data were provided for 2018 taxable year: Compensation income P1,800,000 Sales 2,800,000 Cost of sales 1,125,000 Business expenses Interest income from peso bank deposit Interest income from bank deposit under FCDS Gain on sale of land in the Philippines held as 650,000 80,000 120,000 Capital asset with cost P1.5M when zonal is P1.2M 500,000 How much is her total income tax expense assuming she opted to be taxed at 8% O P321,500 O P788,500 O P808,000 P652,000
Lorna is a mixed income earner. She is a self-employed resident citizen and currently the Finance Manager of Omega Corporation. The following data were provided for 2018 taxable year: Compensation income P1,800,000 Sales 2,800,000 Cost of sales 1,125,000 Business expenses Interest income from peso bank deposit Interest income from bank deposit under FCDS Gain on sale of land in the Philippines held as 650,000 80,000 120,000 Capital asset with cost P1.5M when zonal is P1.2M 500,000 How much is her total income tax expense assuming she opted to be taxed at 8% O P321,500 O P788,500 O P808,000 P652,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lorna is a mixed income earner. She is a self-employed
resident citizen and currently the Finance Manager of
Omega Corporation. The following data were provided
for 2018 taxable year:
P 1,800,000
2,800,000
1,125,000
Compensation income
Sales
Cost of sales
Business expenses
Interest income from peso bank deposit
Interest income from bank deposit under FCDS
Gain on sale of land in the Philippines held as
Capital asset with cost P1.5M when zonal is P1.2M 500,000
650,000
80,000
120,000
How much is her total income tax expense assuming she
opted to be taxed at 8%
P321,500
O P788,500
O P808,000
O P652,000
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