- The employees of PALA, Incorporated staged a strike. Mon an employee joined the strike. After four (4) months of continued strike, Mon ran out of money and asked financial aid from other people since he has no source of income and needed financial assistance in order to live. He was able to raise P3,000. When Mon filed his return, he excluded these benefits from his gross income. a. The P 3,000 is subject to final withholding tax. b. The- entire amount is not taxable because it is a donation and not income. C. The income is not taxable because it is neither compensation, business, professional nor passive income. d. The entire income is taxable because it is considered as income from whatever source derived.
- The employees of PALA, Incorporated staged a strike. Mon an employee joined the strike. After four (4) months of continued strike, Mon ran out of money and asked financial aid from other people since he has no source of income and needed financial assistance in order to live. He was able to raise P3,000. When Mon filed his return, he excluded these benefits from his gross income. a. The P 3,000 is subject to final withholding tax. b. The- entire amount is not taxable because it is a donation and not income. C. The income is not taxable because it is neither compensation, business, professional nor passive income. d. The entire income is taxable because it is considered as income from whatever source derived.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:16. The employees of PALA, Incorporated staged a strike. Mon an employee
joined the strike. After four (4) months of continued strike, Mon ran out of
money and asked financial aid from other people since he has no source of
income and needed financial assistance in order to live. He was able to
raise P3,000. When Mon filed his return, he excluded these benefits from
his gross income.
a. The P 3,000 is subject to final withholding tax.
b. The- entire amount is not taxable because it is 'a donation and not
income.
C. The income is not taxable because it is neither compensation,
business, professional nor passive income.
d. The entire income is taxable because it is considered as income from
whatever source derived.
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