Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000. In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000. How much is his income tax due in 2021 if he avails of the 8% income tax rate?
Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000. In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000. How much is his income tax due in 2021 if he avails of the 8% income tax rate?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 4DQ
Related questions
Question
Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000.
In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000.
How much is his income tax due in 2021 if he avails of the 8% income tax rate?
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