Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance...

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Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance manager of Hallie Corporation. The following data were provided for the year 2021. Compensation Income, net of mandatory contributions Sales Cost of Sales Business Expenses Interest income from peso bank deposits Interest income from customer's notes Gain on sale of land in the Philippines held as a capital asset with cost of P1,500,000 when the zonal is 1,200,000 P 1,800,000 2,800,000 1,125,000 650,000 80,000 120,000 500,000 1. How much is subject to regular income tax? 2. Assuming he opted to be taxed at 8%, compute his income tax expense. 3. If Michael opted to use OSD instead of itemized deduction, how much is his income tax expense? 4. If Michael opted to use OSD instead of itemized deduction and didn't pay any taxes during the year, compute the tax that Michael should pay to the BIR (Disregard the penalty) Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance manager of Hallie Corporation. The following data were provided for the year 2021. Compensation Income, net of mandatory contributions Sales Cost of Sales Business Expenses Interest income from peso bank deposits Interest income from customer's notes Gain on sale of land in the Philippines held as a capital asset with cost of P1,500,000 when the zonal is 1,200,000 P 1,800,000 2,800,000 1,125,000 650,000 80,000 120,000 500,000 1. How much is subject to regular income tax? 2. Assuming he opted to be taxed at 8%, compute his income tax expense. 3. If Michael opted to use OSD instead of itemized deduction, how much is his income tax expense? 4. If Michael opted to use OSD instead of itemized deduction and didn't pay any taxes during the year, compute the tax that Michael should pay to the BIR (Disregard the penalty)

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To determine the income tax liability of Michael we need to calculate his taxable income first Heres how we can calculate it 1 Calculate Gross Income Compensation Income P1800000 Sales P2800000 Intere... View the full answer