directal 7520,000 - Free download as PDF File (.pdf), Text File (.txt) or read online for free. 1) For Problem 1, the life insurance proceeds of P5,000,000 for Joey's death (part a) and the maturity value of P1,500,000 (part c) are excluded from gross income. For part b, P5,000,000 is excluded and the P200,000 interest income is taxable. 2) For Problem 2, the P600,000 insurance proceeds from the fire damage to Phoebe Company's building is fully excluded from gross income. 3) For Problem 3, the P450,000 moral damages and P70,000 reimbursement for Ross's hospital bills are excluded from his gross income for the taxable compensation of P80,000">
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    Problem Set - Exclusions From Gross Income: Directal 7520,000

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    Ciana Sacdalan
    1) For Problem 1, the life insurance proceeds of P5,000,000 for Joey's death (part a) and the maturity value of P1,500,000 (part c) are excluded from gross income. For part b, P5,000,000 is excluded and the P200,000 interest income is taxable. 2) For Problem 2, the P600,000 insurance proceeds from the fire damage to Phoebe Company's building is fully excluded from gross income. 3) For Problem 3, the P450,000 moral damages and P70,000 reimbursement for Ross's hospital bills are excluded from his gross income for the taxable compensation of P80,000

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    Problem Set - Exclusions From Gross Income: Directal 7520,000

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    Ciana Sacdalan
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    1) For Problem 1, the life insurance proceeds of P5,000,000 for Joey's death (part a) and the maturity value of P1,500,000 (part c) are excluded from gross income. For part b, P5,000,000 is excluded and the P200,000 interest income is taxable. 2) For Problem 2, the P600,000 insurance proceeds from the fire damage to Phoebe Company's building is fully excluded from gross income. 3) For Problem 3, the P450,000 moral damages and P70,000 reimbursement for Ross's hospital bills are excluded from his gross income for the taxable compensation of P80,000

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    1) For Problem 1, the life insurance proceeds of P5,000,000 for Joey's death (part a) and the maturity value of P1,500,000 (part c) are excluded from gross income. For part b, P5,000,000 is excluded and the P200,000 interest income is taxable. 2) For Problem 2, the P600,000 insurance proceeds from the fire damage to Phoebe Company's building is fully excluded from gross income. 3) For Problem 3, the P450,000 moral damages and P70,000 reimbursement for Ross's hospital bills are excluded from his gross income for the taxable compensation of P80,000

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views3 pages

    Problem Set - Exclusions From Gross Income: Directal 7520,000

    Uploaded by

    Ciana Sacdalan
    1) For Problem 1, the life insurance proceeds of P5,000,000 for Joey's death (part a) and the maturity value of P1,500,000 (part c) are excluded from gross income. For part b, P5,000,000 is excluded and the P200,000 interest income is taxable. 2) For Problem 2, the P600,000 insurance proceeds from the fire damage to Phoebe Company's building is fully excluded from gross income. 3) For Problem 3, the P450,000 moral damages and P70,000 reimbursement for Ross's hospital bills are excluded from his gross income for the taxable compensation of P80,000

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    PROBLEM SET – EXCLUSIONS FROM GROSS INCOME

    PROBLEM 1. LIFE INSURANCE CONTRACTS

    Joey is insured in a P 5,000,000 life insurance policy. The policy requires annual premium payments of P 100,000
    for 10 years. If Joey outlives the policy after the 10 years, he will be paid a P 1,500,000 maturity value. Compute
    for the exclusions from gross income for each independent situation:
    a. Joey has died on the 8th year of coverage and his heirs received P 5,000,000 proceeds. F5,000,000 =>

    b. Joey’s insurance company asked for an extension of payment of proceeds and will pay P 5,200,000.
    -
    c. Joey outlived the policy and collected the maturity value of P 1,500,000.
    -
    d. Joey assigned the policy to Chandler for P 500,000 after 4 years of paying annual premium payments.

    PROBLEM 2. PROPERTY INSURANCE CONTRACTS

    Phoebe Company secured a fire insurance covering the half of its commercial building for P 600,000. The building
    was destroyed by fire when the current value of the building was P 2,000,000. The company recovered the
    insurance proceeds in full. Determine the exclusion from gross income.

    PROBLEM 3. COMPENSTION FOR INJURIES

    Ross was hit by a taxi. He paid P 70,000 for hospitalization expenses. The court awarded him a total indemnity
    of P 600,000 after he sued the taxi driver. The breakdown is as follows:
    >directal for injury

    Moral damages P o
    450,000
    Reimbursement of hospital bills - 7520,000
    70,000
    Lost salary 80,000
    ↳ inclusion in al

    Determine the exclusions from gross income.

    PROBLEM 4. STATE MANDATED CONTRIBUTIONS

    Rachel has a gross compensation of P 500,000 in 2022. His employer deducted the following from his income:
    -

    50," 000)
    SSS Contributions P 15,000
    0
    =

    PhilHealth Contributions 12,000


    HDMF Contributions 9,000
    Labor union dues 6,000
    Creditable withholding tax 90,000 44,500

    Determine the gross taxable compensation income. 90,000


    -

    PROBLEM 5. BARANGAY MICRO-BUSINESS ENTERPRISES 0

    Monica has a restaurant with total assets of P 3,500,000 inclusive of a lot with book value of P 1,000,000. The
    following are her transactions for the year:

    Gross income – food sales P-


    250,000
    Interest on promissory notes -15,000
    Royalties – sale of recipe books 10,000
    Dividend income from domestic stock 6,000 FI
    -

    Determine the exclusions from gross income. 265,000


    Problem 1

    a) F5,000,000
    b) Return of premiu
    taxable
    -

    5,000,000 exclusion from gross income 5,000,000 exclusion;200,000 interest


    income
    for gross
    200,000 interest
    Is taxable

    C) Total Proceeds * 1,550,000

    Return premium
    of 1,000,000
    ROC
    -
    500,000
    I - -

    d) Total Proceeds

    premium
    #

    Return of

    ROC

    Problem 2

    Total proceeds 600,000


    * exclusion

    Di
    -

    Return of
    Premium 1,000,000

    ROC
    #000-

    Problem 3

    450,000
    damages
    #

    moral

    Reimbursement of hospital bills 70,000

    20
    Problem 4

    500,000

    2022:
    (15,000) 44,508

    (12,000) *458,000
    =

    44,500
    - 190,000)
    -
    -
    (9,000) 0
    ↳
    (6,000) Walang babayaram
    Problem 5

    Gross Income -

    food sales * 250,000

    intereston promissory notes 15,000

    *
    265,000

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