10. Compute the income tax due if Jerik opted to use the 88 optional income tax. a. P 72, 960 b. P 72, 000 c. P 52, 960 d. P 52, 000
10. Compute the income tax due if Jerik opted to use the 88 optional income tax. a. P 72, 960 b. P 72, 000 c. P 52, 960 d. P 52, 000
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 54P
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Question
Income
Transcribed Image Text:7. Jerik, a self-employed employee with ten dependent children, had the
following items of income and expenses in 2020:
P 900, 000
400, 000
Р 500, 000
16, 000
12, 000
Sales
Less: Cost of sales
Gross profit
Interest income, net of 20% final tax
Interest income from clients notes
Expenses:
Salaries expense
Depreciation expense
Rent & other expenses
Interest expense
P 100, 000
15, 000
50, 000
30, 000
P 333, 000
Net income
Transcribed Image Text:10. Compute the income tax due if Jerik opted to use the 88 optional
income tax.
P 72, 960
b. P 72, 000
c. P 52, 960
d. P 52, 000
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