ProblemMr. Renato and Mr. Walter, both married and are certified public accountants, formed generalprofessional partnership during the current taxable year to render consultancy services to the public.The partners share profits and losses equally.The result of the partnership's operation showed the following data:Gross receipt from clientsCosts of servicesP 1,000,000300,000Business expenses240,000Additional information provided:a. Mr. Renato, married with three qualified dependent children, has other income derivedfrom business as follows:P 400,000120,00080,000Gross salesCosts of expensesOperating taxesb. Travelling expenses incurred by the partners related to GPP's operation, which were neitherclaimed by the GPP as deduction income nor liquidated by the partnership:15,00010,000Mr. RenatoMr. Walterc. Mr. Walter, married with five qualified dependents, received compensation income of P250,000 as part -time college professor.Required: Determine the net taxable income and the tax due and payable of Mr. Renato under thefollowing cases:1. The GPP avails itemized deductions.2. The GPP avails the OSD.

Deductions The amount that a person or individual will reduce from the gross income earned is called…

Problem Mr. Renato and Mr. Walter, both married and are certified public accountants, formed general professional partnership during the current taxable year to render consultancy services to the public. The partners share profits and losses equally. The result of the partnership's operation showed the following data: Gross receipt from clients Costs of services Business expenses 1,000,000 300,000 240,000 Additional information provided: a. Mr. Renato, married with three qualified dependent children, has other income derived from business as follows: Gross sales Costs of expenses P 400,000 Operating taxes 120,000 80,000 b. Travelling expenses incurred by the partners related to GPP's operation, which were neither claimed by the GPP as deduction income nor liquidated by the partnership: Mr. Renato Mr. Walter P 15,000 10,000 Mr. Walter, married with five qualified dependents, received compensation income of 250,000 as part-time college professor. Required: Determine the net taxable income and the tax due and payable of Mr. Renato under the following cases: 1. The GPP avails itemized deductions. 2. The GPP avails the OSD.

Problem Mr. Renato and Mr. Walter, both married and are certified public accountants, formed general professional partnership during the current taxable year to render consultancy services to the public. The partners share profits and losses equally. The result of the partnership's operation showed the following data: Gross receipt from clients Costs of services Business expenses 1,000,000 300,000 240,000 Additional information provided: a. Mr. Renato, married with three qualified dependent children, has other income derived from business as follows: Gross sales Costs of expenses P 400,000 Operating taxes 120,000 80,000 b. Travelling expenses incurred by the partners related to GPP's operation, which were neither claimed by the GPP as deduction income nor liquidated by the partnership: Mr. Renato Mr. Walter P 15,000 10,000 Mr. Walter, married with five qualified dependents, received compensation income of 250,000 as part-time college professor. Required: Determine the net taxable income and the tax due and payable of Mr. Renato under the following cases: 1. The GPP avails itemized deductions. 2. The GPP avails the OSD.

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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