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Individual Income taxpayer Case 1 Case 3 Compensation income 300,000 300,000 Non-taxable 30,000 30,000 compensation Gross business income 400,000 400,000 Deductions 250,000 250,000 Compute

Individual Income taxpayer Case 1 Case 3 Compensation income 300,000 300,000 Non-taxable 30,000 30,000 compensation Gross business income 400,000 400,000 Deductions 250,000 250,000 Compute the taxable income in each case. Explain your answers. Case 2

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