On April 30, 2020 the endowmentinsurance policy of Zandy, for whichhe was paying an annual premium ofP10,000 since April 2000 matured. Hewas then paid the face value of hisinsurance policy in the amount ofP500,000.How much is excludedfrom gross income? *O ZeroP200,000P300,000P500,000 Rem was retired by his employercorporation in 2020 and was paidP1,000,000 as a retirement gratuitywithout any deduction of withholdingtax. In addition, Rem was also paidP50,000 representing terminal leavepay and P45,000 for unpaid bonuses.How much is excluded from grossincome? *ZeroP1,000,000P1,050,000P1,095,000

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Answered: surance policy of Zandy, for whicl e…

surance policy of Zandy, for whicl e was paying an annual premium o 10,000 since April 2000 matured. as then paid the face value of his

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 16P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

On April 30, 2020 the endowment
insurance policy of Zandy, for which
he was paying an annual premium of
P10,000 since April 2000 matured. He
was then paid the face value of his
insurance policy in the amount of
P500,000.How much is excluded
from gross income? *
O Zero
P200,000
P300,000
P500,000

Rem was retired by his employer
corporation in 2020 and was paid
P1,000,000 as a retirement gratuity
without any deduction of withholding
tax. In addition, Rem was also paid
P50,000 representing terminal leave
pay and P45,000 for unpaid bonuses.
How much is excluded from gross
income? *
Zero
P1,000,000
P1,050,000
P1,095,000

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