Mang Panday, a resident citizen taxpayer approached you and presented the following- * Description 2020 Basic salary P800,000 130,000 Overtime, holiday pays, honorarium and other allowances Non-taxable compensation (not included in the above) Rental income on his apartment for lease 90,000 150,000 Royalty earned from the sale and distribution of his books- Local Dividend earned on his stocks from San Mig. Inc., a domestic corporation Gross income from a "sideline" store business Interest income earned from his banks savings account-Local banks Gross income from online selling of plants Income from the sale of his old car Income from the sale of a farm land he inherited years ago 500.000 30,000 70,000 10,000 90.000 40,000 400,000 Mang Panday wants to determine the taxability of the foregoing. How much is the total amount of passive income which is subject to final tax?

Mang Panday, a resident citizen taxpayer approached you and presented the following- * Description 2020 Basic salary P800,000 130,000 Overtime, holiday pays, honorarium and other allowances Non-taxable compensation (not included in the above) Rental income on his apartment for lease 90,000 150,000 Royalty earned from the sale and distribution of his books- Local Dividend earned on his stocks from San Mig. Inc., a domestic corporation Gross income from a "sideline" store business Interest income earned from his banks savings account-Local banks Gross income from online selling of plants Income from the sale of his old car Income from the sale of a farm land he inherited years ago 500.000 30,000 70,000 10,000 90.000 40,000 400,000 Mang Panday wants to determine the taxability of the foregoing. How much is the total amount of passive income which is subject to final tax?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A capital gains tax is levied on the sale of which of the following items? Choose all that apply. A. real estate B. income C. stocks D. gasoline
Which of the following taxes is both an employee and an employer tax?a. federal income tax.b. FUTA.c. local income tax.d. OASDI.
! Required information Problem 12-45 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $191,000 salary working full time for Angels Corporation. Angels Corporation reported $444,000 of taxable business income for the year (2021). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $191,000 (all salary from Angels Corporation). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) Problem 12-45 Part a (Algo) a. Assuming the income allocated to Mason is qualified business income, what is Mason's deduction for qualified business income?
What aree the procedures in the computation of gross taxable income and tax due in the situation or circumstances suggested below: a) Individuals whose earning is purely from compensation income.
One is a deductible taxa. fringe benefit tax b. estate tax c. donors tax d. income tax
Net income after tax is: The difference of financial income and total deferred income tax expense. The difference of taxable income and current income tax expense. The financial income less any current income tax expense add any income tax benefit. Cannot be determined.
Explain the federal estate tax.
what are the differences between the following components of taxable income o Deductions for AGI and deductions from AGI o Gross income and AGI o AGI and taxable income o Tax deduction and tax credit
Explain what the benifit is to having tax classified under statutory income. Aside from capital gains discounts that are applied, if you receive income that is classified under staturory income, what are the benifits over it being classified as ordinary income. provide an example.
Under this income taxation scheme, the full amount of tax is withheld by the payor before such income is received by the payee taxpayer. a. Final income tax scheme b. Capital gains tax scheme c. Regular income tax scheme d. Any one of the above
Explain further the steps in determining the income tax.