of her mother's life insurance resulting from her death. Premiums paid totaled P780,000. • Increase in the fair value of his stock investments, P25,000. • Cash gift from his missionary friend, P50,000. • House and Lot inherited from his
of her mother's life insurance resulting from her death. Premiums paid totaled P780,000. • Increase in the fair value of his stock investments, P25,000. • Cash gift from his missionary friend, P50,000. • House and Lot inherited from his
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 24CE
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Question
Mr. Brandon dela Cruz, had the following during the taxable year:
• P1,500,000 for outliving his life insurance policy. He paid quarterly premium of P3,000 for 25 years.
• P2,500,000 as proceeds of her mother's life insurance resulting from her death. Premiums paid totaled P780,000.
• Increase in the fair value of his stock investments, P25,000.
• Cash gift from his missionary friend, P50,000.
• House and Lot inherited from his mother, P3,000,000. . Rent Income from house and lot inherited, P100,000.
Question:
1. How much of the amounts enumerated should not be reported as gross income?
2. How much is the total inclusions to gross income?
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