Question

Problem 6B Both Compensation and Self-Employment Mr. Adrien, Advertising Director of Binah Corporation has the following records for his income from employment and souvenir shop business in 2018: Annual Compensation Income, including 13th Month Pay and Other Benefits of P170,000, but net of mandatory contributions to SSS, Philhealth and HDMF Gross Sales - Souvenir Shop Non-operating Income Cost of Sales Operating Expenses P2,400,000 1,700,000 85,000 700,000 300,000 A. Mr. Adrien opted to be taxed at 8% income tax rate on his gross sales for his income from business. Determine Mr. Adrien's income tax due for 2018? B. Assume that Mr. Adrien did not signify his intention to be taxed at the 8% income tax rate based on gross sales and other non-operating income. Compute for Mr. Adrien's income tax due for the year. C. Mr. Adrien filed his resignation from employment in March 2019. Up to that month, his total compensation income totalled P480,000 inclusive of P80,000 benefits. Assume that his business operations for 2019 were the same as last year. For 2019, he opted for the 8% income tax rate. What will be the total income tax due of Mr. Adrien for the year 2019?

          Problem 6B
Both Compensation and Self-Employment
Mr. Adrien, Advertising Director of Binah Corporation has the following records for his
income from employment and souvenir shop business in 2018:
Annual Compensation Income, including 13th Month Pay
and Other Benefits of P170,000, but net of mandatory
contributions to SSS, Philhealth and HDMF
Gross Sales - Souvenir Shop
Non-operating Income
Cost of Sales
Operating Expenses
P2,400,000
1,700,000
85,000
700,000
300,000
A. Mr. Adrien opted to be taxed at 8% income tax rate on his gross sales for his income
from business. Determine Mr. Adrien's income tax due for 2018?
B. Assume that Mr. Adrien did not signify his intention to be taxed at the 8% income
tax rate based on gross sales and other non-operating income. Compute for Mr.
Adrien's income tax due for the year.
C. Mr. Adrien filed his resignation from employment in March 2019. Up to that month,
his total compensation income totalled P480,000 inclusive of P80,000 benefits.
Assume that his business operations for 2019 were the same as last year. For 2019,
he opted for the 8% income tax rate. What will be the total income tax due of Mr.
Adrien for the year 2019?

Problem 6B
Both Compensation and Self-Employment
Mr. Adrien, Advertising Director of Binah Corporation has the following records for his
income from employment and souvenir shop business in 2018:
Annual Compensation Income, including 13th Month Pay
and Other Benefits of P170,000, but net of mandatory
contributions to SSS, Philhealth and HDMF
Gross Sales - Souvenir Shop
Non-operating Income
Cost of Sales
Operating Expenses
P2,400,000
1,700,000
85,000
700,000
300,000
A. Mr. Adrien opted to be taxed at 8% income tax rate on his gross sales for his income
from business. Determine Mr. Adrien's income tax due for 2018?
B. Assume that Mr. Adrien did not signify his intention to be taxed at the 8% income
tax rate based on gross sales and other non-operating income. Compute for Mr.
Adrien's income tax due for the year.
C. Mr. Adrien filed his resignation from employment in March 2019. Up to that month,
his total compensation income totalled P480,000 inclusive of P80,000 benefits.
Assume that his business operations for 2019 were the same as last year. For 2019,
he opted for the 8% income tax rate. What will be the total income tax due of Mr.
Adrien for the year 2019?

Added by James P.

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