Compute for the final income tax due given the following scenarios on passive income. Mark, a...
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Compute for the final income tax due given the following scenarios on passive income. Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the exchange rate is $1-P54. Salaries Business Income P: 165,000 $2,000 P 450,000 $ 6,000 P 120,000 $1,500 Business Expenses Interest Income: Personal Receivable Foreign Currency Deposit Unit On Bank Deposits (20% long-term) Royalty Income (20% from books) Prize won in contest Winnings from the Philippine Charity Sweepstakes Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000) P 10,000 $ 2,500 P 25,000 $3,000 P 22,000 $1,000 P 10,000 P 80,000 P 30,000 Additional information: Mark received the following dividend income during the year: • P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. • P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is only 40%. • P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is 10%. Compute for the final income tax due given the following scenarios on passive income. Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the exchange rate is $1-P54. Salaries Business Income P: 165,000 $2,000 P 450,000 $ 6,000 P 120,000 $1,500 Business Expenses Interest Income: Personal Receivable Foreign Currency Deposit Unit On Bank Deposits (20% long-term) Royalty Income (20% from books) Prize won in contest Winnings from the Philippine Charity Sweepstakes Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000) P 10,000 $ 2,500 P 25,000 $3,000 P 22,000 $1,000 P 10,000 P 80,000 P 30,000 Additional information: Mark received the following dividend income during the year: • P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad. • P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is only 40%. • P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is 10%.
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Answer rating: 100% (QA)
To compute the final income tax due for Mark we need to consider the different types of passive income and their corresponding tax rates Heres how we can calculate the income tax due for each scenario ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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