Lorna is a resident citizen, earning compensation and business income for 2020 as follows:

Juan is a resident citizen, earning purely business income for the taxable year:

Compensation income	P1,400,000
Gross sales	2,800,000
Cost of sales	1,200,000
Operating expenses	650,000

Determine the income tax due.

Group of answer choices

0 or Exempted

P112,000

P602,000

P485,000 Using the previous question, can Lorna choose to be taxed at 8% instead of the graduated income tax rate?