An individual who is married and has 3 dependent children had the following data in 2019:

Gross Service Fees P1,800,000

Cost of Service Rendered 516,800

Rental Income 216,150

Interest Income on Trade Receivables 34,750

Interest Income on bank time deposits in Phil. 18,000

Interest Expense on Debts to banks 30,500

Taxes Expense (including income tax for 2018 of P26,000) 63,000

Losses (including net gambling losses of P80,000) 152,000

Bad Debts Expense (only 60% of this was written off) 78,000

Depreciation Expense 54,000

Pension Contribution 35,400

Charitable Contribution (deductible but subject to limitation) 76,500

Research & Development Cost (amortized for 5 years) 142,000

Salaries & Wages of employees 350,000

Rent Expense 163,000

Repairs and Maintenance Expense (15% is undocumented) 51,200

Advertising Expense 26,800

Actual Value of Fringe Benefit given to officers 150,000

Other Deductible Business Expenses 324,100

Compute the following:

a. Taxable gross income subject to basic tax

b. Total allowed deductions including charitable contributions

c. Taxable Net Income & Income Tax Due

Answer rating: 100% (QA)

a Taxable gross income subject to basic tax 1283200 b Total allowed deductions including charitable ... View the full answer