Reference no: EM132962452

Problem 1 - Comprehensive Valkyrie reported the following income during the year.

	Within	Abroad
Service Fees	400,000	300,000
Interest Income from Bank Deposits	40,000	70,000
Royalties from Franchise	80,000	30,000
Gains on property dealings	10,000	100,000
Winnings	60,000	50,000
Prizes	5,000	-

Required - Determine the total amount of gross income if Valkyrie is a:

1. Domestic corporation

2. Resident Citizen

3. Resident Alien

4. Resident Foreign Corporation

Problem 2 - Concurrent Taxes - Dr. Ken Jeong is a famous celebrity doctor. He is a VAT taxpayer and is subject to 10% expanded withholding tax. The following are his items of income and expenses during the year.

Professional medical fees from a hospital (gross of VAT and EWT) 2,016,000

Professional medical fees from his clinic (net of VAT and EWT) 432,000

Talent fees from TV guestings (gross of VAT, net of EWT) 2,040,000

Talent fees from endorsements (net of VAT, gross of EWT) 1,450,000

Allowable Deductions 650,000

Required - Compute for his tax due.

Problem 3 - Comprehensive - Mang Jose has several interests in various businesses and partnerships. He received the following income during the year.

Dividends from a domestic corporation 120,000

Dividends from a resident foreign corporation 80,000

Share in net income of a business partnership 200,000

Share in net income of a professional partnership 100,000

Share in net income of a joint venture 50,000

Share in net income of a co-ownership 20,000

Required - How much is the total income to be reported in gross income?