Mr. Ernesto dela Cruz, had the following during the taxable year • P1,500,000 for outliving his life insurance policy. He paid quarterly premium of P3,000 for 25 years. • P2,500,000 as proceeds of her mother's life insurance resulting from her death. Premiums paid totaled P780,000. • Increase in the fair value of his stock investments, P25,000. • Cash gift from his missionary friend, P50,000. • House and Lot inherited from his mother, P3,000,000. • Rent Income from house and lot inherited, P100,000. 1.)How much of the amounts enumerated should not be reported as gross income? 2.)How much is the total inclusions to gross income?
Mr. Ernesto dela Cruz, had the following during the taxable year • P1,500,000 for outliving his life insurance policy. He paid quarterly premium of P3,000 for 25 years. • P2,500,000 as proceeds of her mother's life insurance resulting from her death. Premiums paid totaled P780,000. • Increase in the fair value of his stock investments, P25,000. • Cash gift from his missionary friend, P50,000. • House and Lot inherited from his mother, P3,000,000. • Rent Income from house and lot inherited, P100,000. 1.)How much of the amounts enumerated should not be reported as gross income? 2.)How much is the total inclusions to gross income?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 24CE: Leland pays premiums of 5,000 for an insurance policy in the face amount of 25,000 upon the life of...
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Mr. Ernesto dela Cruz, had the following during the taxable year
• P1,500,000 for outliving his life insurance policy. He paid quarterly premium of P3,000 for 25 years.
• P2,500,000 as proceeds of her mother's life insurance resulting from her death. Premiums paid totaled P780,000.
• Increase in the fair value of his stock investments, P25,000.
• Cash gift from his missionary friend, P50,000.
• House and Lot inherited from his mother, P3,000,000.
• Rent Income from house and lot inherited, P100,000.
1.)How much of the amounts enumerated should not be reported as gross income?
2.)How much is the total inclusions to gross income?
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