Mr. Arturo is in a quandary and approached you to help him identify which of the following is considered as gross income for taxation purposes: Proceeds of loan from a bank @ 7% interest per annum Basic salary Employee allowances and honoraria Indebtedness to employer which was cancelled by the latter because of their budding friendship Selling price of crops harvested for sale Costs and expenses incurred in relation to the harvested P90,000 300,000 20,000 50,000 400,000 crops 150,000 a. P710,000 b. P660,000 c. P570,000 O d. P320,000
Mr. Arturo is in a quandary and approached you to help him identify which of the following is considered as gross income for taxation purposes: Proceeds of loan from a bank @ 7% interest per annum Basic salary Employee allowances and honoraria Indebtedness to employer which was cancelled by the latter because of their budding friendship Selling price of crops harvested for sale Costs and expenses incurred in relation to the harvested P90,000 300,000 20,000 50,000 400,000 crops 150,000 a. P710,000 b. P660,000 c. P570,000 O d. P320,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mr. Arturo is in a quandary and approached you to help him identify which of the
following is considered as gross income for taxation purposes:
Proceeds of loan from a bank @ 7% interest per annum
Basic salary
Employee allowances and honoraria
Indebtedness to employer which was cancelled by the
latter because of their budding friendship
Selling price of crops harvested for sale
Costs and expenses incurred in relation to the harvested
P90,000
300,000
20,000
50,000
400,000
crops
150,000
a. P710,000
b. P660,000
с. Р570,000
d. P320,000
Transcribed Image Text:From the data below, how much is
the total passive income? *
Description
Interest income on savings deposits in local banks
Income from sale of lot held for investment, located IN
2020
P3,000
320,000
Compensation income
Income from legitimate business
Income from illegal business
Income from sale of machine not used in business
200,000
400,000
800,000
40,000
a. P323,000
b. P43,000
с. Р3,000
d. Answer not given
O E
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