Reference no: EM132947907

Questions -

Q1) In 2020, James had: Compensation income (including 13th-month pay and other benefits of P120,000, but net of SSS and Philhealth), P1,500,000

On his store:

Gross sales, P2,400,000

Cost of sales, P1,000,000

Operating expenses, P600,000

Non-operating income, P100,000

How much is the total income tax due assuming James avails the 8% optional income tax?

Q2) A taxpayer who is a resident entrepreneur with a legitimate child, illegitimate child, and a senior citizen dependent, furnished us his financial data for the taxable year 2019 as follows:

Salary from employment, gross monthly, P70,000

Allowances from employment, gross monthly, P5,000

Commission income from employment, P20,000

Interest income on bank deposit, P4,000

Cash dividend, P8,500

Gross business income, P930,000

Other income (15% pf other income is income exempt), P80,000

Business expenses, P480,000

10% of the above expenses are not deductible

Determine his taxable net income and the corresponding income tax due.