RM, a resident of Batangas Province had the following data for the taxable year: (Exchange rate is $1=PHP50) Philippines Abroad Salaries P 165,000 $ 2,000 Business Income P 450,000 $ 6,000 Business Expense P 120,000 $ 1,500 Interest Income: Personal Receivable P 10,000 FCDU $ 2,500 On bank deposits (20%long term) P 25,000 $ 3,000 Royalty Income (20% from books) P 22,000 $ 1,000 Prize won in contest P 10,000 Winnings from Phil. Charity Sweepstakes P 80,000 Sale of shares of stocks of a domestic corporation directly to a buyer (cost PHP 10,000) P 30,000 RM received the following dividend income during the taxable year: P70,000 from the domestic corporation, 30% of its income is attributed to its operations abroad. P60,000 from the resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is only 40%. P80,000 from a nonresident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is 10% RM also sold his condominium unit in Manila (residential) with the following details: Selling price: P2,000,000 Assessed Value (valuation of the City/Provincial Assessor): P3,000,000 Zonal Value: P4,000,000 Determine the following: Taxable income of RM (subject to regular income tax) Total final taxes on his passive income Amount of capital gains tax If he is a non-resident citizen his total final tax on passive income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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RM, a resident of Batangas Province had the following data for the taxable year:

(Exchange rate is $1=PHP50)

		Philippines		Abroad
Salaries	P	165,000	$	2,000
Business Income	P	450,000	$	6,000
Business Expense	P	120,000	$	1,500
Interest Income:
Personal Receivable	P	10,000
FCDU	$	2,500
On bank deposits (20%long term)	P	25,000	$	3,000
Royalty Income (20% from books)	P	22,000	$	1,000
Prize won in contest	P	10,000
Winnings from Phil. Charity Sweepstakes	P	80,000
Sale of shares of stocks of a domestic corporation
directly to a buyer (cost PHP 10,000)	P	30,000

RM received the following dividend income during the taxable year:

P70,000 from the domestic corporation, 30% of its income is attributed to its operations abroad.
P60,000 from the resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is only 40%.
P80,000 from a nonresident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three years is 10%

RM also sold his condominium unit in Manila (residential) with the following details:

Selling price: P2,000,000
Assessed Value (valuation of the City/Provincial Assessor): P3,000,000
Zonal Value: P4,000,000

Determine the following:

Taxable income of RM (subject to regular income tax)
Total final taxes on his passive income
Amount of capital gains tax
If he is a non-resident citizen his total final tax on passive income

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