Final Taxes on Passive Income Compute for the final income tax due given the following scenarios on passive income. Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the exchange rate is $1 - P54. Philippines P 165,000 Abroad Salaries Business Income $ 2,000 P 450,000 $ 6,000 P 120,000 Business Expenses Interest Income: $ 1,500 P 10,000 $ 2,500 P 25,000 P 22,000 P 10,000 P 80,000 P 30,000 Personal Receivable Foreign Currency Deposit Unit On Bank Deposits (20% long-term) Royalty Income (20% from books) $ 3,000 $ 1,000 Prize won in contest Winnings from the Philippine Charity Sweepstakes Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000) Additional information: Mark received the following dividend income during the year: P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is only 40%. P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is 10%. Mark also sold a condominium unit in Manila (residential) for P2,000,000 although its FMV is P3,000,000 but with a zonal value of P4,000,000. Requirements: 1. Compute for Mark's total final income taxes from his passive income. 2. Assuming that Mark is a non-resident citizen, compute for his total final income taxes from his passive income.
Final Taxes on Passive Income Compute for the final income tax due given the following scenarios on passive income. Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the exchange rate is $1 - P54. Philippines P 165,000 Abroad Salaries Business Income $ 2,000 P 450,000 $ 6,000 P 120,000 Business Expenses Interest Income: $ 1,500 P 10,000 $ 2,500 P 25,000 P 22,000 P 10,000 P 80,000 P 30,000 Personal Receivable Foreign Currency Deposit Unit On Bank Deposits (20% long-term) Royalty Income (20% from books) $ 3,000 $ 1,000 Prize won in contest Winnings from the Philippine Charity Sweepstakes Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000) Additional information: Mark received the following dividend income during the year: P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is only 40%. P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is 10%. Mark also sold a condominium unit in Manila (residential) for P2,000,000 although its FMV is P3,000,000 but with a zonal value of P4,000,000. Requirements: 1. Compute for Mark's total final income taxes from his passive income. 2. Assuming that Mark is a non-resident citizen, compute for his total final income taxes from his passive income.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 52P
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Transcribed Image Text:Final Taxes on Passive Income
Compute for the final income tax due given the following scenarios on passive income.
Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the
exchange rate is $1 - P54.
Philippines
P 165,000
Abroad
Salaries
Business Income
$ 2,000
P 450,000 $ 6,000
P 120,000
Business Expenses
$ 1,500
Interest Income:
P 10,000
$ 2,500
P 25,000
P 22,000
P 10,000
P 80,000
P 30,000
Personal Receivable
Foreign Currency Deposit Unit
On Bank Deposits (20% long-term)
$ 3,000
$ 1,000
Royalty Income (20% from books)
Prize won in contest
Winnings from the Philippine Charity Sweepstakes
Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000)
Additional information: Mark received the following dividend income during the year:
P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad.
P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide
income for the past three (3) years is only 40%.
P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over
worldwide income for the past three (3) years is 10%.
Mark also sold a condominium unit in Manila (residential) for P2,000,000 although its FMV is P3,000,000
but with a zonal value of P4,000,000.
Requirements:
1. Compute for Mark's total final income taxes from his passive income.
2. Assuming that Mark is a non-resident citizen, compute for his total final income taxes from his passive
income.
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