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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mr. Brandon 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.
Question:
1. How much of the amounts enumerated should not be reported as gross income?
2. How much is the total inclusions to gross income?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education