5.Pedro earned and incurred the following income and expenses: Compensation (exclusive of mandatory contributions) P200,000 Mandatory contributions 20,000 Gross receipts from business 500,000 Cost of service 150,000 Operating expenses 50,000 Royalties from books 40,000 Personal expenses 170,000 Interest income from client notes 8,000 Compute the taxable income subject to the graduated tax rates.
5.Pedro earned and incurred the following income and expenses: Compensation (exclusive of mandatory contributions) P200,000 Mandatory contributions 20,000 Gross receipts from business 500,000 Cost of service 150,000 Operating expenses 50,000 Royalties from books 40,000 Personal expenses 170,000 Interest income from client notes 8,000 Compute the taxable income subject to the graduated tax rates.
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 67P
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450,000
468,000
508,000
558,000
Answer is 450,000 can you tell me how it was solved?
Transcribed Image Text:5.Pedro earned and incurred the following income and expenses:
Compensation (exclusive of mandatory
contributions)
P200,000
Mandatory contributions
20,000
Gross receipts from business
500,000
Cost of service
150,000
Operating expenses
50,000
Royalties from books
40,000
Personal expenses
170,000
Interest income from client notes
8,000
Compute the taxable income subject to the graduated tax rates.
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