Question 1

Mrs. B is an employee, with gross compensation income of P 600,000 and Mr. B is in business, with the following data:

Gross sales = P 4,800,000

Non-operating income = P 200,000

Costs and expenses = P 2,000,000

Net rent income of Mr. and Mrs. B from joint property is P 500,000.

Compute the following:

1. Income tax of Mrs. B?

2. Taxable income of Mr. B,

a. If he choose itemized deduction?

b. If he choose optional standard deduction?

3. Income tax of Mr. B,

a. If he choose itemized deduction?

b. If he choose optional standard deduction?

Question 2

Fill in the blanks

Mrs. A is an employee, with gross compensation income of P 400,000. And Mr. A is in business, with the following data:

Gross sales = P 4,800,000

Non-operating income = P 200,000

Cost and expenses = P 2,000,000

Compute the following:

1. Income tax of Mrs. A?

2. If availing of itemized deduction,

a. Taxable income of Mr. A?

b. Income tax of Mr. A?

3. If availing of optional standard deduction?

a. Taxable income of Mr. A?

b. Income tax of Mr. A?