On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000
On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 26P
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Transcribed Image Text:On January 1, 2018, Roque established a trust fund for the benefit of his dear friend,
Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the
trust is a piece of land with a dormitory earning rental income.
During the year, the trust earned P80,000,000 revenues and incurred expenses of
P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In
the same year, Mr. Panelo earned compensation income of P5,000,000.
The tax due of the trust is
O Nil
O P10,500,000
O P8,750,000
O P17,500,000
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT