Allan, an officer of Jetti Corporation, earned in 2018 an annual compensation of P1,300,000 inclusive of 13th month pay. The total amount of mandatory contributions is P24,500. He also received 10,000 representing his annual clothing allowance. Aside from employment income, he owns a farm with gross sales of P3,500,000. His cost of sales and operating expenses are P1,000,000 and P600,000, respectively, and with non-operating income of P100,000. His taxable compensation income is: a. 1,179,500 b. 1,275,500 c. 1,181,500 d. Cannot be determined based on the given

Allan, an officer of Jetti Corporation, earned in 2018 an annual compensation of P1,300,000 inclusive of 13th month pay. The total amount of mandatory contributions is P24,500. He also received 10,000 representing his annual clothing allowance. Aside from employment income, he owns a farm with gross sales of P3,500,000. His cost of sales and operating expenses are P1,000,000 and P600,000, respectively, and with non-operating income of P100,000. His taxable compensation income is: a. 1,179,500 b. 1,275,500 c. 1,181,500 d. Cannot be determined based on the given

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 41P

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