Reference no: EM133180587
Question 1 - Assume that Mr. Melmag, a resident citizen employee, has compensation income amounting to P1,440,000 inclusive of 13th month pay amounting to P120,000; Christmas bonus, P120,000; Cash gift, P5,000; SSS contribution, P9,600; Philhealth contribution, P19,200; and Pag-ibig contribution, P1,200.
Required -
a. Compute income tax payable for year 2022.
b. Compute income tax payable for year 2023.
Question 2 - Assume that Ms. Tere, a resident citizen, is engaged in the sale of goods. Her income and expenses for year 2022 are as follows:
Sales 15,000,000.00
Salaries and allowances paid to employees 1,680,000.00
Repairs expenses 126,000.00
Representation expenses 42,000.00
Transportation expenses 294,000.00
Fuel and oil expenses 630,000.00
Communication, light and water expenses 756,000.00
Office supplies expenses 378,000.00
Taxes and licenses 210,000.00
Miscellaneous expenses 84,000.00
Cost of sales 8,700,000.00
Required -
a. Compute gross income;
b. Compute income tax payable if Ms Tere avails of the itemized deductions; and
c. Compute income tax payable if Ms Tere avails of the 40% Optional Standard Deduction.
Question 3 - Assume that Mr. Manpac, a Filipino Citizen residing in the Philippines (Resident Citizen), is a professional boxer. He derives income in the Philippines and abroad.
In 2022, his taxable income in the Philippines is P10,000,000. In Las Vegas USA, P12,000,000 and paid the corresponding income tax thereon amounting to P3,500,000.
Required - Compute income tax still payable after tax credit.