Mr. X was injured in a vehicular accident in 2018. He incurred and paid medical expenses of P20,000 and legal fee
Mr. X was injured in a vehicular accident in 2018. He incurred and paid medical expenses of P20,000 and legal fee
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 41P
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Question
Mr. X was injured in a vehicular accident in 2018. He incurred and paid medical expenses of P20,000 and legal fees of P10,000 during the taxable year. In 2020, he received P70,000 as settlement from the insurance company which insured the car owned by the other party involved in the accident. From the above payments and transactions, the amount of taxable income in 2020 is?
a. P70,000
b. P50,000
c. P40,000
d. zero
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT