Mr. Ventura was on his way to deliver merchandise ordered by his customer when another driver lost control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with the other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the following: Repair and replacement of truck parts Total selling price of merchandise destroyed (at P1,000,000 cost) Hospitalization and medical expenses for injuries sustained Reimbursement for other expenses incurred in relation to the incident Total P900,000 1,700,000 300,000 250,000 P3,150,000 How much of the above is gross income of Mr. Ventura for taxation purposes?
Mr. Ventura was on his way to deliver merchandise ordered by his customer when another driver lost control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with the other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the following: Repair and replacement of truck parts Total selling price of merchandise destroyed (at P1,000,000 cost) Hospitalization and medical expenses for injuries sustained Reimbursement for other expenses incurred in relation to the incident Total P900,000 1,700,000 300,000 250,000 P3,150,000 How much of the above is gross income of Mr. Ventura for taxation purposes?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 35P
Related questions
Question
100%
Transcribed Image Text:Mr. Ventura was on his way to deliver merchandise ordered by his customer when
another driver lost control over his truck and rammed it against the truck of Mr.
Ventura. As a result, Ventura sustained injuries, his truck was severely damaged, and
all the merchandise were destroyed. Negotiations with the other party went smoothly
and Mr. Ventura was paid the total amount of P3,150,000 for the following:
Repair and replacement of truck parts
Total selling price of merchandise destroyed
(at P1,000,000 cost)
Hospitalization and medical expenses for
injuries sustained
Reimbursement for other expenses incurred
in relation to the incident
P900,000
1,700,000
300,000
250,000
Total
P3,150,000
How much of the above is gross income of Mr. Ventura for taxation purposes?
a. P3,150,000
b. P1,950,000
c. P1,700,000
d. P700,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you