2. Aside from being a manager Pepe also deposited in a Bank to earn an extra income through passive income. He deposited 4,000,000 in a 180-day time deposit. The deposit pays 5% interest. Compute the final tax on the maturity of the deposit.

2. Aside from being a manager Pepe also deposited in a Bank to earn an extra income through passive income. He deposited 4,000,000 in a 180-day time deposit. The deposit pays 5% interest. Compute the final tax on the maturity of the deposit.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 47P: How do the all events and economic performance requirements apply to the following transactions by...

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Answer 2 to 5 only

1. Pepe is a Manager working at Ayala Malls Legazpi for Taxable year 2020. He had the following data:
. Basic Pay-
259,000.00
50,000.00
•
Holiday & OT-
Incentives -
50,000.00
TOTAL 359,000.00
Travel Allowance (to be liquidated)
100,000.00
MANDATORY BENEFITS:
. SSS
10,000.00
PHIC
1,200.00
• HDMI
1,000.00
12,200.00
Total
• COMPUTE THE GROSS COMPENSATION
2. Aside from being a manager Pepe also deposited in a Bank to earn an extra income through passive
income. He deposited 4,000,000 in a 180-day time deposit. The deposit pays 5% interest. Compute the
final tax on the maturity of the deposit.
3. Supposed that Pepe's investment is a Six year time deposit dated January 26, 2020. Assuming Pepe
terminated the deposit today, how much is the final tax to be withheld by the Bank upon termination?
4. Explain who will pat the final tax and ow?
5. Explain the different between Income Tax and final tax.

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