PROBLEM 29

A resident alien, single and with her father as dependent had the following data for the current year 2019:

a. Gross rental income from apartment in Manila City P875,000

b. Interest income from bank deposits 83,000

c. Basic salary/overtime pay (net of P31,500 withholding tax) 450,000

d. 13th month pay 27,500

e. Subsistence (meals) allowances 82,500

f. Christmas bonus and other Incentive pay from employment 165,000

g. Income tax refund received for 2017 income tax return 27,500

h. Refund of life insurance premium 19,000

i. Allowances received (deemed for the convenience of the employer) 18,000

j. Cash gift from friend on account of her birthday 108,000

k. Other Fringe benefit from employment (as a chief accountant) 157,500

l. Properties received as inheritance from her deceased mother 1,800,000

m. Cash dividend from a domestic corporation 73,000

n. Property dividend from a non-resident foreign corporation 52,000

o. Director's fees received 380,000

p. Sales price of lot in Quezon City, held as capital asset: cost

price P1,200,000 and a fair market value P6,500,000 5,200,000

Determine the following:

a. Gross income

b. Taxable net income

c. Total final income tax on passive income

d. Capital gains tax.

PROBLEM 30

A self-employed person who is unmarried had the following data in 2019:

Gross Income from Sales P750,000

Other Business Expense (except those items below) 480,000

Charitable Contributions not deductible 25,000

Charitable Contributions fully deductible 35,000

Charitable Contributions deductible but subject to limitation 15,000

Compute the Taxable Net Income and Income Tax Due

PROBLEM 31

An entrepreneur who is unmarried had the following information in 2019:

Gross Sales of merchandise P738,750

Sales Returns, Allowances & Discounts 50,000

Cost of Sales 321,200

Net Operating Loss in 2018 69,000

Business Expense (excluding above items) 150,250

Compute the Taxable Net Income and Income Tax Due if:

a. Adopted the Optional Standard Deduction

b. Adopted the Itemized Deduction