Reference no: EM132905642

A resident citizen businessman, married, with five (5) dependent children has the following data for the current year ended December 31, 2020:

Income and Expenses from Business:

Gross revenue from business...................................... P 800,000
Cost of sales.............................................................. 310,000
Salaries and wages.................................................... 160,000
Repairs and maintenance............................................ 20,000
Bad debts................................................................. 15,000
Rent......................................................................... 120,000
Taxes and licenses...................................................... 18,000
Utilities..................................................................... 60,000

Income and Expenses from Profession:

Professional income.................................................... 600,000
Salaries of office personnel........................................... 180,000
Office rentals.............................................................. 100,000
Taxes and licenses........................................................ 300
Bad debts written-off..................................................... 15,000
Interest paid to brother, on loan used to finance profession 5,000
Donations to the Boy Scout of the Philippines.................. 10,000
Dividend received from a domestic corporation................ 10,000
Interest income on time deposit with Banco de Oro............ 8,000

All expenses were properly documented and the corresponding withholding taxes were withheld.

Problem 1: How much is the total taxable income?

Problem 2: How much is income tax due?

Problem 3: How much final taxes were paid by the taxpayer on passive income?