R. Jagna Earned A Gross Compensation Income Of P200,000, Exclusive Of P20,000 No…

R. jagna earned a gross compensation income of p200,000, exclusive of p20,000 non-taxable compensation income, and gross business income of p500,000 before expenses of p200,000. he also earned books royalties of p10,000 and p8,000 interest income from client’s promissory notes. mr. jagna has a personal expense of p170,000 during the year. what is mr. jagna’s taxable com

Answer: Taxable Compensation is P 508,000.

Explanation:

Gross compensation: 200,000

Add: Gross business income: 500,000

Less: Business expenses: (200,000)

Add: Interest income from Promissory Notes: 8,000

Total: 508,000

Notes:
(1) Non-Taxable Compensation is excluded when computing taxable compen.

(2) Royalties from books subject to final tax, thus, excluded.

For further financial accounting (or even cost/management) accounting, statistics or economic questions, I do offer commission-type services. Let me know how I can help by sending me a message. Thank you. 🙂  

R. Jagna Earned A Gross Compensation Income Of P200,000, Exclusive Of P20,000 No…

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