Mr. Ventura was on his way to deliver merchandise ordered by his customer when another driver lost control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with the other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the following: Repair and replacement of truck parts Total selling price of merchandise destroyed (at P1,000,000 cost) Hospitalization and medical expenses for injuries sustained Reimbursement for other expenses incurred in relation to the incident P900,000 1,700,000 300,000 250,000 Total P3,150,000 How much of the above is gross income of Mr. Ventura for taxation purposes? a. P3,150,000 b. P1,950,000 c. P1,700,000 d. P700,000
Mr. Ventura was on his way to deliver merchandise ordered by his customer when another driver lost control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with the other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the following: Repair and replacement of truck parts Total selling price of merchandise destroyed (at P1,000,000 cost) Hospitalization and medical expenses for injuries sustained Reimbursement for other expenses incurred in relation to the incident P900,000 1,700,000 300,000 250,000 Total P3,150,000 How much of the above is gross income of Mr. Ventura for taxation purposes? a. P3,150,000 b. P1,950,000 c. P1,700,000 d. P700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mr. Ventura was on his way to deliver merchandise ordered by his customer when
another driver lost control over his truck and rammed it against the truck of Mr.
Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and
all the merchandise were destroyed. Negotiations with the other party went smoothly
and Mr. Ventura was paid the total amount of P3,150,000 for the following:
Repair and replacement of truck parts
Total selling price of merchandise destroyed
(at P1,000,000 cost)
Hospitalization and medical expenses for
injuries sustained
Reimbursement for other expenses incurred
in relation to the incident
P900,000
1,700,000
300,000
250,000
Total
P3,150,000
How much of the above is gross income of Mr. Ventura for taxation purposes?
a. P3,150,000
b. P1,950,000
c. P1,700,000
d. P700,000
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