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A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated) Dividends from ABC Corp. a domestic corp Php 1,000,000

A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated)

Dividends from ABC Corp. a domestic corp Php 1,000,000

Dividends from XYZ Corp. a foreign corp* (dominant income is abroad) Php 1,000,000

Interest income from long-term investments (6th year) Php 1,000,000

Interest income from short-term deposits Php 1,000,000

Raffle Prize (car) Php 1,000,000

Royalty Php 1,000,000

*Assuming tax treaty rate is 10%

Compute the ordinary/active income if taxpayer is a domestic corporation:

Group of answer choices

Php 3,000,000

Php 5,000,000

Php 6,000,000

Php 4,000,000

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