Consider the following in answering a set of questions:

Nicanor is a resident doctor at ABC Hospital. At the same time, he operates his own clinic. ABC Hospital and Nicanor’s clinic are both accredited by PhilHealth. The following were disclosed to you by Nicanor:

Income from ABC Hospital:

Gross Compensation – Php 2,800,000

13th-month pay and other benefits – Php 200,000

SSS, Philhealth, and other mandatory contributions – Php 50,000

Income from Clinic:

Gross receipts:

From Walk-in patients with issued receipts - Php 1,000,000

From patients paid for by Philhealth – Php 1,000,000

Expenses:

Office Rental – Php 250,000

Representation expense – Php 100,000

Salary of staff nurse – Php 250,000

Salary of the family driver – Php 120,000

Salary of kasambahay – 60,000

Gas and oil – Php 50,000

Utilities expense (office) – Php 100,000

Utilities expense (house) – Php 250,000

Other information:

Receipts from patients with no issued official receipts – Php 2,000,000

Under-the-table (not reported) Commissions from pharmaceutical companies due to referrals/prescriptions of medicines – Php 500,000

Quarterly Income tax payments – Php 30,000

Tax withheld by PhilHealth (with BIR Form 2307) – Php 100,000

Tax withheld by ABC Hospital (with BIR Form 2316) – Php 300,000

If you are the Accountant of ABC Hospital, how much withholding tax should be withheld on Nicanor’s compensation for the year?

Group of answer choices

b. 1,290,000

d. 701,200

c. 0

a. 746,000