1 Determine the type of income 2 Determine the income tax liability of each type of income 3 Actual computation of the income tax
Mr. Abillar, a financial analyst employed in BDO bank, received an annual compensation in 2020 of 1.5M, which is inclusive of his
13th month and other benefits in the amount of 120k, but net of the mandatory contributions to SSS & PHIC.
He also owns a computer store with gross sales of 2.4M. His cost of sales and operating expense amounted to 1M & 600k respectively.
His store's non-operating income amounted to 100k.
His other income for the year consisted of the following items:
Interest from bank deposit 20,000.00
Sale of lot in Bulacan:
Selling price 1,000,000.00
Acquisition cost 200,000.00
Required:
1 Determine the type of income
2 Determine the income tax liability of each type of income
3 Actual computation of the income tax
Step by step
Solved in 2 steps
