On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000

On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000

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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