In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth. Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000. Compute his income tax due for 2018 if he avails of the 8% income tax rate option on his gross sales plus non-operating income arising from his cafeteria business. P1,277,360 P1,257,360 P1,101,360 P1,734,430
In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth. Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000. Compute his income tax due for 2018 if he avails of the 8% income tax rate option on his gross sales plus non-operating income arising from his cafeteria business. P1,277,360 P1,257,360 P1,101,360 P1,734,430
Chapter5: Unemployment Compensation Taxes
Section: Chapter Questions
Problem 14PB
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Question
In 2018, Malakas M. Henyo, the CEO of the Philippines Nuclear Fusion Corporation, earned compensation income of P4,000,500. This amount is inclusive of his 13th month pay and other benefits of P250,000, but net of the mandatory contributed to SSS and Philhealth.
Aside from his employment, he also owns a cafeteria. In 2018, the cafeteria had gross sales of P1,500,000, cost of sales of P500,000 and operating expenses of P300,000. It also had non-operating income of P700,000.
Compute his income tax due for 2018 if he avails of the 8% income tax rate option on his gross sales plus non-operating income arising from his cafeteria business.
P1,277,360
P1,257,360
P1,101,360
P1,734,430
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