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Compute the correct taxable income for Mr Chua

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Reference no: EM132858597

Question - The Income Tax Return of Mr. Chua for taxable year 2019, reported a taxable income of P520,240. A careful scrutiny revealed that some items included as income and expenses are the following:

INCOME

Compensation Income- 180,000

Cash Dividend- 122,800

Stock Dividends- 73,500

Property Dividends- 27,000

Gambling Winnings- 23,100

Donation Received- 16,000

Gain on sale of capital assets (15 months)- 8,000

Income on rice land- 60,000

Gain on sale of his vacant lot- 120,000

TOTAL- 630,400

EXPENSES

Real estate tax- 3,500

Community Tax- 945

Surcharge, late filing of 2018 ITR- 12,000

Interest in personal loan- 24,000

Gambling Losses- 32,000

Personal and living expenses- 50,000

Loss on sale of capital assets (8.5 months)- 5,000

Loss on crops due to flood- 27,250

TOTAL- 154,695

Required - Compute the correct 2019 taxable income for Mr. Chua?

Reference no: EM132858597

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