Anna is a scholarship grantee of ABC Company. In consideration of Anna’s excellent academic performance, she received a P100,000 award form ABC Company with the condition that after graduation, she will render at least 1 year service to ABC. Is the award taxable?
Anna is a scholarship grantee of ABC Company. In consideration of Anna’s excellent academic performance, she received a P100,000 award form ABC Company with the condition that after graduation, she will render at least 1 year service to ABC. Is the award taxable?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 17DQ
Related questions
Question
Anna is a scholarship grantee of ABC Company. In consideration of Anna’s excellent academic performance, she received a P100,000 award form ABC Company with the condition that after graduation, she will render at least 1 year service to ABC. Is the award taxable?
A. Yes, it is not excluded from gross income because it is in consideration of future service.
B. Yes, it is subject to tax on donation.
C. No, it is an award excluded from gross income because it is for Anna’s academic achievement.
D. Answer not given.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT