Patrick was injured in a vehicular accident in 2018. He incurred and paid medical expenses of P10,000 and legal fees of P5,000 during that year. In 2016, he recovered P35,000 as settlement from the insurance company which insured the car owned by the other party involved in the accident. The taxable income in 2019 is a. 20,000 b. 30,000 c. 0 d. 25,000

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter1: The Individual Income Tax Return
Section: Chapter Questions
Problem 4P: In 2019, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and...
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Patrick was injured in a vehicular accident in 2018. He incurred and paid
medical expenses of P10,000 and legal fees of P5,000 during that year. In 2016,
he recovered P35,000 as settlement from the insurance company which insured
the car owned by the other party involved in the accident. The taxable income in
2019 is

a. 20,000
b. 30,000
c. 0
d. 25,000

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