Income Taxation: INDIVIDUAL INCOME TAXATION in the philippines 7. Jerik, a self-employed employee with ten dependent children, had thefollowing items of income and expenses in 2020:P 900, 000400, 000Р 500, 00016, 00012, 000SalesLess: Cost of salesGross profitInterest income, net of 20% final taxInterest income from clients notesExpenses:Salaries expenseDepreciation expenseRent & other expensesInterest expenseP 100, 00015, 00050, 00030, 000P 333, 000Net income 9. Compute the taxable income if Jerik opted to use the optionalstandard deductiona. P 552, 000b. P 547, 200c.. P 540, 000d. P 312, 000

A tax deduction is declared by the taxable assessee for which the tax is being determined and he…

Answered: of sales it ncome, net of 20% final tax…

of sales it ncome, net of 20% final tax P 900, 000 400, 000 P 500, 000 16, 000 12, 000 ncome from clients notes ries expense eciation expense & other expenses P 100, 000 15, 000 50, 000

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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Question

Income Taxation: INDIVIDUAL INCOME TAXATION in the philippines

7. Jerik, a self-employed employee with ten dependent children, had the
following items of income and expenses in 2020:
P 900, 000
400, 000
Р 500, 000
16, 000
12, 000
Sales
Less: Cost of sales
Gross profit
Interest income, net of 20% final tax
Interest income from clients notes
Expenses:
Salaries expense
Depreciation expense
Rent & other expenses
Interest expense
P 100, 000
15, 000
50, 000
30, 000
P 333, 000
Net income

9. Compute the taxable income if Jerik opted to use the optional
standard deduction
a. P 552, 000
b. P 547, 200
c.. P 540, 000
d. P 312, 000

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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