PROBLEM 25

The data of a married couple for the year 2019 are as follow:

a. Net Income from employment-husband (tax withheld P28,750) P 801,500

b. Net Income from employment-wife (tax withheld P36,000) 1,202,500

c. Interest income on bank deposits in Philippines 8,000

d. Royalty income in Philippines (net of final tax) 65,000

e. Dividend income of husband from a non-resident foreign corporation 30,500

Compute the taxable net income and income tax still due after tax credits of the husband and wife.

PROBLEM 26

A resident alien taxpayer is married but is legally separated. He has with him his two dependent children. He requested for your assistance to compute for his income tax due for the year 2019:

Compensation income (net of withholding tax of P12,000) P 184,500

Business income (net of creditable withholding tax equal to 5%) 3,705,000

Dividend income from domestic corporation 125,000

Dividend income from resident foreign corporation 186,000

Interest income on bank deposits-Philippines 35,000

Interest income on trust fund- Philippines 65,000

Royalty income- Philippines 805,000

Interest income on trade receivables 108,000

Gain from sale of ordinary assets 58,500

Loss from sale of ordinary assets 24,300

Gain from sale of capital assets, held for 6 months 140,000

Loss from sale of capital assets, held for 13 months 160,000

Business Expenses 2,306,000

Non-deductible business expenses included above 215,000

Determine the following:

a. Gross income

b. Taxable net income

c. Total final income tax on passive income