Philippine Taxation (Train Law)

A private employee retired at 60 in the middle of the year and was paid the following remunerations:

Retirement benefits P2,000,000;

Terminal leave pay (150 accumulated days) P120,000

Compensation, net of P16,000 SSS, PHIC and HDMF contributions, for P128,000

Mid-year bonus P8,000 and Pro-rated 13th month pay P12,000.

Compute the taxable compensation income.

a.) 136,000

b.) 170,000

c.) 2,170,000

d.) 238,000