Correction for Problem B in the Final Exam: Rent expense for 12 months plus one month security deposit should be Php 156,000 and not Php 132,000. Please be guided accordingly and consider this correction in your computation.

Problem B: 8) On July 1, 2022, Joann received php 440,000, net of interest deducted in advance from ABC Bank. The Joann Arellano, a resident citizen, owns a small real estate consultancy firm that caters to selected individual personal loan is payable in 4 equal quarterly installments starting on October 31, 2022 at 12% interest and corporate clients. In addition to her practice of profession, she is also employed as a full-time Marketing per annum. Upon receiving the proceeds of the loan, Joan invested the amount in a short-term Manager in LEAP Trading, a fast-growing retail company located in Makati City, money market placement that bears an annual interest of 15%. She has the following information during the taxable year December 31, 2021: h) Creditable withholding taxes is Php 60,000 On Compensation (Annual) Other Sources of Income (Gross): Royalties received as author of a textbook in Marketing P 100,000 15,000 Basic salary Php 1,440,000 Dividend income from Manhattan Inc, a foreign corporation 10,000 13" month pay and performance bonus 240,000 Honorarium as a resource speaker during commencement exercise Monetized sick leave for 10 days (at P5,000 per day) 50,000 Dividends received from XYZ Inc, a domestic corporation 5,000 Reimbursement for travel expenses 120,000 Actual medical assistance as part of executive check-up 20,000 Requirements: Rice subsidy 18,000 5) How much is the total final withholding taxes from all sources? Cash gift received during Company anniversary and Christmas 10,000 6) How much is the net taxable income subject to basic tax? 7) How much is the income tax to be paid by Joann during the taxable year 2021? Additional information: a) In addition to above package, the Company granted her a 2-bedroom condominium unit in Tagaytay City where she can use for her convenience. The Company is paying a monthly rent of Php 78,000. 6) LEAP also pays the annual membership fee of Joann in Tagaytay Country Club (a social club) worth Php 65,000 and professional association of marketing professionals amounting to P2,000. c) Joann also received P13,000 grocery allowance. She is not required to submit official receipts and nvoices under the name of LEAP Trading. d) Joann is also given by the Company a service vehicle. On some instances, Joann is also using the car to cater to her personal clients. The car, which is under the name of LEAP Trading, has an acquisition cost of Php 1,000,000 e) Withholding tax on compensation is Php 200,000 On Business Income (Annual) Consultancy fees Php 1,200,000 Salaries expense 240,000 Rent expense for 12 months plus one-month's security deposit 132,000 Utilities expense (inclusive of electricity deposit of Php 6,000) 96,000 Local business taxes including interest of P1,000 and surcharges of P2,000 10,000 Representation expense 16,000 Miscellaneous expenses 25,000 Supplemental Information: f) Miscellaneous expenses include the following: Minor business expenses with official receipts Php 20,000 Cash shortage of one of the staff, deductible against his salary 2,000 Penalties for late payment of withholding tax on compensation 1.000 Loss on sale of used computer unit 2,000 Total Php 25,000