Mr. B, a resident Filipino, married having 5 dependent children, reported the following income and expenses from the taxable year 2019. B did not signify his intention to elect and be taxed at the 8% final income tax. Compensation income, net of P60,000 withholding tax P 754,000 Overtime pay 60,000 ssS contribution (mandatory) 10,800 PhilHealth contribution (mandatory) 4,800 PAG-IBIG contribution (mandatory) 1,200 Union dues contribution 1,200 | Compensation received for personal injuries 30,000 Hospitalization benefits received from SSS 5,000 13th month pay 92,000 De minimis: Unavailed vacation leave (10 days) 35,380 Rice subsidy 48,000 Clothing allowance 10,000 Christmas bonus 10,000 CPA Professional income, net of withholding tax 380,000 Salary of audit staff 150,000 Interest expense used for CPA continuing education 25,000 Interest income, net of final tax 20,000 Dividend income, net of final tax 45,000 Royalty income - as author, net of final tax 108,000 Gain on sale of capital asset – short term 100,000 Loss on sale of capital asset – long term 48,500
Mr. B, a resident Filipino, married having 5 dependent children, reported the following income and expenses from the taxable year 2019. B did not signify his intention to elect and be taxed at the 8% final income tax. Compensation income, net of P60,000 withholding tax P 754,000 Overtime pay 60,000 ssS contribution (mandatory) 10,800 PhilHealth contribution (mandatory) 4,800 PAG-IBIG contribution (mandatory) 1,200 Union dues contribution 1,200 | Compensation received for personal injuries 30,000 Hospitalization benefits received from SSS 5,000 13th month pay 92,000 De minimis: Unavailed vacation leave (10 days) 35,380 Rice subsidy 48,000 Clothing allowance 10,000 Christmas bonus 10,000 CPA Professional income, net of withholding tax 380,000 Salary of audit staff 150,000 Interest expense used for CPA continuing education 25,000 Interest income, net of final tax 20,000 Dividend income, net of final tax 45,000 Royalty income - as author, net of final tax 108,000 Gain on sale of capital asset – short term 100,000 Loss on sale of capital asset – long term 48,500
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 18CE
Related questions
Question
Income tax still due and payable per ITR.
P170,000
P250,000
P120,000
P130,000
None of the above
Transcribed Image Text:Mr. B, a resident Filipino, married having 5 dependent
children, reported the following income and expenses from
the taxable year 2019. B did not signify his intention to elect
and be taxed at the 8% final income tax.
Compensation income, net of P60,000 withholding tax
P 754,000
Overtime pay
60,000
SSS contribution (mandatory)
10,800
PhilHealth contribution (mandatory)
4,800
PAG-IBIG contribution (mandatory)
1,200
Union dues contribution
1,200
Compensation received for personal injuries
30,000
Hospitalization benefits received from SSS
5,000
13th month pay
92,000
De minimis:
Unavailed vacation leave (10 days)
35,380
Rice subsidy
48,000
Clothing allowance
10,000
Christmas bonus
10,000
CPA Professional income, net of withholding tax
380,000
Salary of audit staff
150,000
Interest expense used for CPA continuing education
25,000
Interest income, net of final tax
20,000
Dividend income, net of final tax
45,000
Royalty income - as author, net of final tax
108,000
Gain on sale of capital asset – short term
100,000
Loss on sale of capital asset - long term
48,500
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