1. How much is the total amount of excluded or exempt income?

2. How much is the final tax on certain income?

3. The taxpayer failed to indicate in his first quarter return the option to be taxed at 8%, how much is the income tax due?

4. The taxpayer signified in his first quarter return to opt for the 8% income tax rate, how much is the income tax due?
 

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A resident citizen, widower, with a dependent minor brother, had the following data on income and expenses for 2018: Gross Sales P1,500,000 Cost of Sales 1,000,000 Business Expenses Interest from savings deposit, BPI-Makati, Philippines Prize in a literary contest he joined Prize received for achievement in literature (did not join the contest) Gain from sale of bonds (maturity is 6 years) Separation pay from his former job (resigned) Cash he inherited from his uncle 200,000 50,000 100,000 10,000 5,000 250,000 300,000 Proceeds of his wife's life insurance (irrevocable beneficiary) Amount received as return of premium (premium paid, P150,000) 1,000,000 200,000 Tax informer's reward 500,000 Philippine Charity Sweepstakes winnings Interest income from government bonds Winnings from illegal gambling 10,000 20,000 10,000 A resident citizen, widower, with a dependent minor brother, had the following data on income and expenses for 2018: Gross Sales P1,500,000 Cost of Sales 1,000,000 Business Expenses Interest from savings deposit, BPI-Makati, Philippines Prize in a literary contest he joined Prize received for achievement in literature (did not join the contest) Gain from sale of bonds (maturity is 6 years) Separation pay from his former job (resigned) Cash he inherited from his uncle 200,000 50,000 100,000 10,000 5,000 250,000 300,000 Proceeds of his wife's life insurance (irrevocable beneficiary) Amount received as return of premium (premium paid, P150,000) 1,000,000 200,000 Tax informer's reward 500,000 Philippine Charity Sweepstakes winnings Interest income from government bonds Winnings from illegal gambling 10,000 20,000 10,000

Answer rating: 100% (QA)

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