A practicing Certified Public Accountant, who is single, has a younger brother as dependent. He had the
Question:
A practicing Certified Public Accountant, who is single, has a younger brother as dependent.
He had the following data in 2019:
Income from employment – Jan. to Sept. 2019
Basic salary (net of P2, 750 Tax Withheld) P64,200
Allowances (net of 5% Tax Withheld) 25,000
Gain from sale of personal car 13,600
Income/Expenses from practice of profession July to December 2019:
Professional Fees (net of 10% tax withheld) P863,000
Rental Income on business property (net of 5% tax withheld) 42,000
Interest Income on bank deposit-Phil. 5,700
Business Expenses 549,000
Required: Compute for the Taxable Net Income and the Income tax payable after tax
credit.
PROBLEM 16
A resident citizen individual, who is a head of family, provided the following commercial
information for the year 2019 as reflected from its accounting records:
Gross Income-Phil. P600,000
Gross Income-Malaysia 350,000
Gross Income-USA 400,000
Business Expense-Phil. 300,000
Business Expense-Malaysia 150,000
Business Expense-USA 300,000
Income tax paid-Malaysia 21,700
Income tax paid-USA 35,600
Prior’s quarters income tax paid 27,600
Required: Compute the Taxable Net Income and the income tax still due after the tax
credit, if the taxpayer opted to treat the foreign income tax as:
a. Part of Tax Credit
b. Part of Allowed Deductions from Gross Income
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta