Compute the total amount of income subject to finaltax.Yield from deposit substitute- 20,000• Interest income from bonds of a domesticcorporation- 23,000Property dividend declared by a foreigncorporation- 40,000• Stock dividend declared by a domesticcorporation- 60,000Compensation income, net of P10,000withholding tax- 80,000• Prize on "Search for Mr. Sexy Body"- 25,000Royalties from books- 24,000• Interest income on personal loans granted to afriend- 8,000AP89,000ВP99,000P49,000P69,000

Correct answer is option B That is P99,000 So,Total amount of income subject to final tax is P99,000

Answered: erest income from bonds of a dome…

Business

Accounting

erest income from bonds of a dome poration- 23,000 perty dividend declared by a foreigr poration- 40.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Compute the total amount of income subject to final
tax.
Yield from deposit substitute- 20,000
• Interest income from bonds of a domestic
corporation- 23,000
Property dividend declared by a foreign
corporation- 40,000
• Stock dividend declared by a domestic
corporation- 60,000
Compensation income, net of P10,000
withholding tax- 80,000
• Prize on "Search for Mr. Sexy Body"- 25,000
Royalties from books- 24,000
• Interest income on personal loans granted to a
friend- 8,000
A
P89,000
В
P99,000
P49,000
P69,000

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