Which constitutes a taxable item ofgross income? *Compensation for personal injuriesO Gain from sale of shares in mutual fund:O Gain from sale of government bondsO Income exempt under treaty Pedro insured his crops for aP1,000,000 insurance cover againstcalamities. He paid and expensedP100,000 insurance premium. Uponreceipt of the P1,000,000 insuranceafter the crops were destroyed by arecent typhoon, how much will beexcluded from his gross income? *P900,000O P1,000,000P100,000O zero

Compensation for injuries or sickness, Income exempt under treaty, Gains from redemption of shares…

Answered: Which constitutes a taxable item of…

Which constitutes a taxable item of gross income? * O Compensation for personal injuries Gain from sale of shares in mutual fund Gain from sale of government bonds Income exempt under treaty

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

Which constitutes a taxable item of
gross income? *
Compensation for personal injuries
O Gain from sale of shares in mutual fund:
O Gain from sale of government bonds
O Income exempt under treaty

Pedro insured his crops for a
P1,000,000 insurance cover against
calamities. He paid and expensed
P100,000 insurance premium. Upon
receipt of the P1,000,000 insurance
after the crops were destroyed by a
recent typhoon, how much will be
excluded from his gross income? *
P900,000
O P1,000,000
P100,000
O zero

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