Question: Required: Solution and explanation From the data below, how much is subject to regular income tax? * Description 2020 Interest income on savings deposits in

Required: Solution and explanation

From the data below, how much is subject to regular income tax? * Description 2020 Interest income on savings deposits in local banks P3,000 Income from sale of lot held for investment, located IN 320,000 Compensation income 200,000 Income from legitimate business 400,000 Income from illegal business 800,000 Income from sale of machine not used in business 40,000 a. P1,760,000 b. P1,440,000 C. P1,400,000 d. P640,000 A taxpayer providing services provided the following: Description 2019 2020 Payment of expenses current period P400,000 P600,000 Expenses incurred but unpaid 250,000 150,000 Payment of 2019 incurred expenses 100,000 Advances for expenses incurred in the following year 200,000 300,000 How much is the total deductions for expenses under the accrual method? a. 250,000 (2019; 350,000 (2020) O b. 650,000 (2019); 750,000 (2020) O C. 600,000 (2019); 1,000,000 (2020) d. 650,000 (2019); 950,000 (2020)

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