Reference no: EM132690708

Problem 1: Compensation income is income arising out of an employer-employee relationship and encompasses all renumeration for services performed by an employee for his/her employer whether paid in cash or in kind. On the list of income given below, which represent compensation income? with explanation.

1. Professional fees
2. Director's fees
3. Wages for services rendered
4. Pension pay
5. Capital gain on sale of real property
6. Emergency leave pay
7. Vacation and sick leave
8. Honoraria
9. Gratuitous condonation of debt or obligation
10. Commission paid to salesman
11. Retirement pay
12. Bonuses
13. Fringe benefits given by employers to their rank-and-file personnel
14. Emoluments
15. Income tax paid by employer in favor of the employee