Mang Carding is a minimum wage earner. To augment his earnings, he put up a mini store under his name and managed by his wife. Records show the following relating to his compensation and store operations for the taxable year: Basic salaryP85,000Overtime and holiday pay10,00013th month pay8,00014th month pay8,000Allowances25,000De minimis – limit20,000De minimis – excess over limit10,000Store gross income100,000 Compute the taxable income of Mang Carding.

1) The income received from 13th and 14th month will not be taken from taxable value , due to that…

Answered: Mang Carding is a minimum wage earner.…

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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Mang Carding is a minimum wage earner. To augment his earnings, he put up a mini store under his name and managed by his wife. Records show the following relating to his compensation and store operations for the taxable year:

Basic salary	P85,000
Overtime and holiday pay	10,000
13th month pay	8,000
14th month pay	8,000
Allowances	25,000
De minimis – limit	20,000
De minimis – excess over limit	10,000
Store gross income	100,000

Compute the taxable income of Mang Carding.

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