Compute the total final tax that should have been withheld

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Q1. Mr. Digong, a resident citizen, earned the following prizes from two different competitions:

Date Event Gross Prize

January 4, 2011 Singing competition 12,000

February 14, 2011 Painting competition 10,000

Compute the TOTAL FINAL TAX that should have been withheld from the above prizes.

a. 5,500

b. 4,400

c. 2,400

d. 0

Q2. Based on the preceding data, how much income is subject to regular income tax (basic tax)?

a. 12,000

b. 10,000

c. 22,000

d. 0

Q3. Consider this situation: Jinkee Pacquiao filed charges against Agot Isidro for the latter's "noveau" statement against the former on Instagram. Jinkee received compensation from such charges amounting to 50,000. Will this amount form part of Jinkee's gross income? Why or why not?

Reference no: EM133134067

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