Mr. Cruz was an employee of ABC Trading. He was killed by a co-employee in one of their regular “inuman" session. A case was filed by theheirs of Mr. Cruz against the co-employee. The court decided in favor ofthe heirs and awarded them the following:DescriptionAmountCompensatory damagesMoral damagesExemplary damagesFor attorney's fees and cost of lawsuitConsequential damages representing the loss of thevictim's earning capacityP400,000800,000200,000500,0001,300,000How much of the above is return of capital?P3,200,000O P2,400,000P2,200,000P1,900,000

Solution Return of capital is defined as the amount that is not taxable. Description Amount…

Answered: Mr. Cruz was an employee of ABC…

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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