1. Assume the following data for XYZ Inc., a domestic corporation, during the 2021 taxable year (4th year of business operations):

Gross Income, Philippines

P9,750,000

Expenses, Philippines

5,500,000

Gross Income, Malaysia

7,700,000

Expenses, Malaysia

3,300,000

Interest on bank deposit

250,000

Determine the income tax due.

2. A farmer on a cash basis has the following data for the year:

Beginning Inventory:

Livestock and farm products raised on the farm

Livestock and farm products purchased the previous year

P60,000

30.000

Ending Inventory:

Livestock and farm products raised on the farm

Livestock and farm products purchased

Sales of livestock and farm products raised and purchased

Cost of livestock and farm products purchased during the year

100.000

80.000

120,000

100.000

Miscellaneous Income:

Gain on the sale of work, breeding, or dairy animals Gain on the sale of farm equipment and machinery

Hire of tractor.

Hire of carabaos and horses

Others

30.000

10.000

20.000

6.000

4,000

How much is the gross income?