4. Jollibee Foods Corporation is currently facing a legal battle with one of its customers. The...

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4. Jollibee Foods Corporation is currently facing a legal battle with one of its customers. The customer claim that he ordered a chicken joy meal, but instead of chicken, he received a deep-fried towel. But because of the customer's low level of thinking, he ate the towel which caused him stomach pain. Aggrieved, the customer then filed a lawsuit. The court, finding Jolibee guilty, awards the customer the following: Moral Damages Damages for loss of income-generating capacity Reimbursement for legal expenses and cost of suit (but the customer actually paid only P16,000) P 120,000 250,000 25,000 Unfortunately, Jolibee can't tender the amount right away, so they paid the above amount 7 months after the decision. Upon payment, Jolibee also paid interest at the legal interest rate of 5%. In addition, Jolibee gave the customer gift certificates worth P20,000 as a sign of courtesy. How much will be subject to regular income tax? 4. Jollibee Foods Corporation is currently facing a legal battle with one of its customers. The customer claim that he ordered a chicken joy meal, but instead of chicken, he received a deep-fried towel. But because of the customer's low level of thinking, he ate the towel which caused him stomach pain. Aggrieved, the customer then filed a lawsuit. The court, finding Jolibee guilty, awards the customer the following: Moral Damages Damages for loss of income-generating capacity Reimbursement for legal expenses and cost of suit (but the customer actually paid only P16,000) P 120,000 250,000 25,000 Unfortunately, Jolibee can't tender the amount right away, so they paid the above amount 7 months after the decision. Upon payment, Jolibee also paid interest at the legal interest rate of 5%. In addition, Jolibee gave the customer gift certificates worth P20,000 as a sign of courtesy. How much will be subject to regular income tax?

Answer rating: 100% (QA)

To determine the amount subject to regular income tax in this scenario we need to calculate the tota... View the full answer