Mr. Masigasig created a trust in favor of Pedro. A large sum entrusted to BDO (Trustee), the income of which is accumulated Pedro. The following data were provided: Gross income of the trust .................................................................
Mr. Masigasig created a trust in favor of Pedro. A large sum entrusted to BDO (Trustee), the income of which is accumulated Pedro. The following data were provided:
Gross income of the trust .................................................................P3,000,000
Deductible business expenses of the trust .....................................1,800,000
Income distributed to Pedro during the year .....................................200,000
Dividend income from domestic corporation..................................... 100,000
Dividend income from resident foreign corporation ........................100,000
Interest income from U.S. $ deposits ..................................................200,000
Interest income from peso deposits ..................................................100,000
Personal Income and Expenses of Pedro
Compensation income .....................................800,000
Rental income (net) .........................................475,000
Rental expenses ..............................................80,000
Royalty income, books ...................................300,000
Other royalty ................................................120,000
income Dividend from domestic corporation ..30,000
Dividend from foreign corporation .....................8,250
Prize, S&R raffle ...............................................15,000
Lotto winnings .........................................10,000,000
Tax payments (Quarter 1-3)...........................120,000
Required:
Determine the following:
1. Income tax payable of the trust
2. Income tax payable of Pedro
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