1. Compute for the income tax expenses for the year if the 8% tax was availed of. Note: income tax expense include tax on capital gains and final tax

Income Tax Expenses

See previous material for passive income with final tax

Mr. Fitness had the following data in a calendar year

Gross sales trom selt-employment

P 2,000,000

lnterest income on Philippine currency banked deposit

10,000

Capital gain on sale of land in the Philippines (selling price of P5.000,000) 1,000,000

Capital gain on sale of shares of stock of a domestic Corporation

Not listed and traded in a local stock exchange

100,000

Cost and expenses on income fromn self-employment

1,100,000

Requirement: Compute for the income tax expense for the year if the 8% tax was availed of.

Note income tax expense include tax on capital gains and final tax.