2. Ethel is a self -employed professional. She provided the following information for 2020 taxable year:

Gross sales P1,650,000

Cost of sales 500,000

Business Expenses 425,000

Rental income (net) 308,750

Philippine Charity sweepstakes winnings 500,000

Royalty income-books 120,000

Other royalty income-Philippines 60,000

Dividend income-domestic corporations 40,000

Interest Income-PNB-Manila 100,000

Interest income received from a foreign currency

Deposit-Philippines 50,000

Creditable withholding tax from business income 65,000

Quarterly tax payments 82,500

1. How much is the income tax payable of Ethel for the year 2020?

247,500 is incorrect based on our grading system. please come up with another answer.

2. How much is the income tax payable of Ethel if she opted to be taxed at an 8% preferential income tax rate?

9,500 is incorrect based on our grading system. please come up with another answer.