Reference no: EM132761087
PROBLEM 1 - A resident alien, single and with her father as dependent had the following data for the current year 2019:
a. Gross rental income from apartment in Manila City P875,000
b. Interest income from bank deposits 83,000
c. Basic salary/overtime pay (net of P31,500 withholding tax) 450,000
d. 13th month pay 27,500
e. Subsistence (meals) allowances 82,500
f. Christmas bonus and other Incentive pay from employment 165,000
g. Income tax refund received for 2017 income tax return 27,500
h. Refund of life insurance premium 19,000
i. Allowances received (deemed for the convenience of the employer) 18,000
j. Cash gift from friend on account of her birthday 108,000
k. Other Fringe benefit from employment (as a chief accountant) 157,500
l. Properties received as inheritance from her deceased mother 1,800,000
m. Cash dividend from a domestic corporation 73,000
n. Property dividend from a non-resident foreign corporation 52,000
o. Director's fees received 380,000
p. Sales price of lot in Quezon City, held as capital asset: cost price P1,200,000 and a fair market value P6,500,000 5,200,000
Required - Determine the following:
a. Gross income
b. Taxable net income
c. Total final income tax on passive income
d. Capital gains tax.
PROBLEM 2 - A self-employed person who is unmarried had the following data in 2019:
Gross Income from Sales P750,000
Other Business Expense (except those items below) 480,000
Charitable Contributions not deductible 25,000
Charitable Contributions fully deductible 35,000
Charitable Contributions deductible but subject to limitation 15,000
Required - Compute the Taxable Net Income and Income Tax Due
PROBLEM 3 - An entrepreneur who is unmarried had the following information in 2019:
Gross Sales of merchandise P738,750
Sales Returns, Allowances & Discounts 50,000
Cost of Sales 321,200
Net Operating Loss in 2018 69,000
Business Expense (excluding above items) 150,250
Required - Compute the Taxable Net Income and Income Tax Due if:
a. Adopted the Optional Standard Deduction
b. Adopted the Itemized Deduction