• University of Perpetual Help System Laguna

• ECON BSBA311

REINFORCEMENT/ ASSIGNMENT Problem 9.1

COMPREHENSIVE

Valkyrie reported the following income during the year.

Within Abroad Service Fees

400,000 30,000

Interest Income from bank deposits 40,000 70,000

Royalties from franchise 80,000 30,000

Gains on property dealings 10,000 100,000 Winnings

60,000 50,000

Prizes 5,000 -

Determine the total amount of gross income if Valkyrie is a:

1. 1,145,000 Domestic corporation

2. 1,145,000 Resident Citizen

3. 595,000 Resident Alien

4. 400,000 Resident Foreign Corporation

Problem 9.2 CONCURRENT TAXES

Dr. Ken Jeong is a famous celebrity doctor. He is a VAT taxpayer and is subject to 10% expanded

withholding tax. The following are his items of income and expenses during the year.

Professional medical fees from a hospital (gross of VAT and EWT) 2,016,000.00

Professional medical fees from his clinic (net of VAT and EWT) 432,000.00

Talent fees from TV guesting (gross of VAT, net of EWT) 2,040,000.00

Talent fees from endorsements (net of VAT, gross of EWT) 1,450,000.00

Allowable Deductions 650,000.00