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    Gross Income

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    Crystal Jenn Balaba
    Mr. Asuncion received royalties totaling $520,000 from mining claims, a novel, and a textbook. The total amount to be reported as gross income is $520,000. Mr. V leased his vacant lot to Mr. J for 12 years at an annual rate of $2,400,000. Mr. J paid $4,800,000 for the first two years and will pay annually on July 1 each year. The total income to be reported by the lessor in 2014 is $4,800,000. The resident citizen had total inclusions to gross income subject to progressive tax of $3,415,000 from various sources such as business income, prizes

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    Gross Income

    Uploaded by

    Crystal Jenn Balaba
    28 views2 pages
    Mr. Asuncion received royalties totaling $520,000 from mining claims, a novel, and a textbook. The total amount to be reported as gross income is $520,000. Mr. V leased his vacant lot to Mr. J for 12 years at an annual rate of $2,400,000. Mr. J paid $4,800,000 for the first two years and will pay annually on July 1 each year. The total income to be reported by the lessor in 2014 is $4,800,000. The resident citizen had total inclusions to gross income subject to progressive tax of $3,415,000 from various sources such as business income, prizes

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    Mr. Asuncion received royalties totaling $520,000 from mining claims, a novel, and a textbook. The total amount to be reported as gross income is $520,000. Mr. V leased his vacant lot to Mr. J for 12 years at an annual rate of $2,400,000. Mr. J paid $4,800,000 for the first two years and will pay annually on July 1 each year. The total income to be reported by the lessor in 2014 is $4,800,000. The resident citizen had total inclusions to gross income subject to progressive tax of $3,415,000 from various sources such as business income, prizes

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views2 pages

    Gross Income

    Uploaded by

    Crystal Jenn Balaba
    Mr. Asuncion received royalties totaling $520,000 from mining claims, a novel, and a textbook. The total amount to be reported as gross income is $520,000. Mr. V leased his vacant lot to Mr. J for 12 years at an annual rate of $2,400,000. Mr. J paid $4,800,000 for the first two years and will pay annually on July 1 each year. The total income to be reported by the lessor in 2014 is $4,800,000. The resident citizen had total inclusions to gross income subject to progressive tax of $3,415,000 from various sources such as business income, prizes

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Mr.

    Asuncion receive the following royalties from the sources:

    Mining claims 150,000


    Novel “Alicia in Wonderland” 250,000
    Basic Accounting textbook 80,000
    Musical composition 40,000
    What is the total amount to be reported in gross income?

    On July 1, 2014, Mr V. leased his vacant lot for a period of 12 years to Mr. J at an annual rate of 2,400,000. It was also
    agreed that Mr. J will pay the ff:

    4,800,000 representing rental payment for two (2) years. Subsequent rental payments will be made every July 1 of the
    applicable year.
    Security deposit of 2,400,000
    Annual real property tax of 30,000

    The lease contract provides, among others that the lessee will construct a 5-storey building for parking purposes at a
    cost of 36,000,000. Ownership of the building shall belong to the lessor upon the expiration of termination of the lease
    contract.

    The building was completed on July 1, 2016 with an estimated useful life of 15 years.

    Assuming Mr. V will use outright method un recognizing income from leasehold improvements, how much is the total
    income from lease for year 2016?

    Assuming Mr. V will use spread-out method un recognizing income from leasehold improvements, how much is the
    total income from lease for year 2016?

    How much income is to be reported by the lessor in 2014?

    A resident citizen, widower, with a dependent minor brother, has the following data on Income and expenses:

    Gross Sales 1,500,000

    Cost of sales 1,000,000

    Business expenses 200,000

    Interest from savings deposit, BPI-makati phil. 50,000

    Prize in literary contest he joined 100,000

    Prized received for achievement in literature (did not join the conte,) 10,000

    Gain from sale of bonds (maturity 6 yrs.) 5,000

    Separation pay from his former job (resigned) 250,000

    Cash he inherited from his uncle 300,000

    Proceeds of his wife’s life insurance (irrevocable benefe.) 1,000,000

    Amount received as a return of premium (premium paid 150,000) 200,000

    Tax informer’s reward 500,000

    Winnings from illegal business 10,000

    How much was the total amount of inclusions to gross income subject to progressive tax?
    How much was the total final tax from certain income?

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