Reference no: EM132761083

PROBLEM 1 - An entrepreneur who is single had the following data in the current year 2019:

Gross Business Income-Philippines P2,600,000

Gross Business Income-Australia 1,400,000

Cash Dividend Income from a domestic corporation 25,000

Collections of loans receivable from the Philippines.

The payor is a non-resident alien - Principal 50,000

- Interest 2,500

Property Dividend Income from a non-resident foreign corp. 15,000

Rental Income received in Australia from a relative of a resident alien who is renting the property located in the Philippines 20,000

Cash dividend from a resident foreign corporation, 18,000 which had the following data for the last 3 years period before the year the dividend was declared:

Gross income - Philippines P3,000,000

Gross income - Abroad 2,000,000

Compute the gross income if the taxpayer is a:

a. Resident Citizen

b. Resident Alien

PROBLEM 2 - The following are the business data of an unmarried individual for the taxable year 2019.

He is an ordinary employee and has his 15 years old brother as dependent.

Business income P875,000

Business expenses 610,000

Gains from sale of ordinary asset 185,000

Losses from sale of ordinary asset 69,000

Basic salary 135,000

Overtime pay 62,500

Personnel economic relief allowance 12,000

13th month pay, bonus, incentive pay 58,000

Other fringe benefits from employment 65,000

Representation transportation allowance, not to be accounted for 7,200

Commission income from employment 43,500

Director's fees 60,000

Required - Determine the gross income.