Yaren, a resident of Isabela Province had the following data for taxable year. (Exchange rate $1=P50). Salaries Business income Business expenses Interest Income- personal receivable Interest income- FCDU Interest income-bank deposits (20% long-term) Royalty income (20% from books) Prize won in contest Winnings from PCSO Sale of shares of stocks of domestic corporation directly to a buyer (cost P10,000) Philippines P 165,000 450,000 120,000 10,000 $ 2,500 25,000 22,000 Questions: 1.) The taxable income of Yaren 10,000 80,000 30,000 Abroad $ 2,000 6,000 1,500 3,000 1,000 Additional Information: → Yaren received the following dividend income during the taxable year: ▪ P 70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. ▪ P 60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is only 40%. ▪ P 80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is 10%. → Yaren also sold his condominium unit in Manila (residential) with the following details: ▪ Selling Price : P 2,000,000 • Assessed value (valuation by the city/provincial assessor) P3,000,000 ▪ Zonal value : P 4,000,000
Yaren, a resident of Isabela Province had the following data for taxable year. (Exchange rate $1=P50). Salaries Business income Business expenses Interest Income- personal receivable Interest income- FCDU Interest income-bank deposits (20% long-term) Royalty income (20% from books) Prize won in contest Winnings from PCSO Sale of shares of stocks of domestic corporation directly to a buyer (cost P10,000) Philippines P 165,000 450,000 120,000 10,000 $ 2,500 25,000 22,000 Questions: 1.) The taxable income of Yaren 10,000 80,000 30,000 Abroad $ 2,000 6,000 1,500 3,000 1,000 Additional Information: → Yaren received the following dividend income during the taxable year: ▪ P 70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. ▪ P 60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is only 40%. ▪ P 80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is 10%. → Yaren also sold his condominium unit in Manila (residential) with the following details: ▪ Selling Price : P 2,000,000 • Assessed value (valuation by the city/provincial assessor) P3,000,000 ▪ Zonal value : P 4,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question: What is the taxable income of Yaren?
Transcribed Image Text:Yaren, a resident of Isabela Province had the following data for taxable year. (Exchange rate
$1=P50).
Salaries
Business income
Business expenses
Interest Income- personal
receivable
Interest income- FCDU
Interest income-bank deposits
(20% long-term)
Royalty income (20% from
books)
Prize won in contest
Winnings from PCSO
Sale of shares of stocks of
domestic corporation directly
to a buyer (cost P10,000)
Philippines
P 165,000
450,000
120,000
10,000
$ 2,500
25,000
22,000
Questions:
1.) The taxable income of Yaren
10,000
80,000
30,000
Abroad
$ 2,000
6,000
1,500
Additional Information:
→ Yaren received the following dividend income during the taxable year:
3,000
1,000
▪ P 70,000 from a domestic corporation. 30% of its income is attributed to its
operations abroad.
▪ P 60,000 from a resident foreign corporation. The ratio of its gross income in
the Philippines over worldwide income for the past three years is only 40%.
▪ P 80,000 from a non-resident foreign corporation. The ratio of its gross income
in the Philippines over worldwide income for the past three years is 10%.
→ Yaren also sold his condominium unit in Manila (residential) with the following details:
▪ Selling Price : P 2,000,000
▪ Assessed value (valuation by the city/provincial assessor) P3,000,000
▪
Zonal value : P 4,000,000
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