Answered: Which of the following statements is…

Business

Accounting

Which of the following statements is not correct?

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 of the following statements is not correct?

a. Interest income from long term deposit is exempt from income tax.

b. Winnings from Philippine Charity Sweeptakes are exempt from income tax.

c. Royalties on books, literary works and musical composition are subject to 10% non- creditable withholding tax.

d. A prize of P10,000 is subject to 20% final tax.

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