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    Inclusion To Gross Income - Part 3 (TORREON, Kimberly Shane) - Sheet3

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    Shane Torrie
    This document contains financial information for Ms. Suko Na and Mr. Laban Pa for the years 2019-2021. It includes computations of their gross income from business, dealings in property, and compensation. It also calculates their taxable income by taking the total gross income and subtracting allowable deductions including mandatory deductions and expenses.

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    Inclusion To Gross Income - Part 3 (TORREON, Kimberly Shane) - Sheet3

    Uploaded by

    Shane Torrie
    19 views1 page
    This document contains financial information for Ms. Suko Na and Mr. Laban Pa for the years 2019-2021. It includes computations of their gross income from business, dealings in property, and compensation. It also calculates their taxable income by taking the total gross income and subtracting allowable deductions including mandatory deductions and expenses.

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    Inclusion to Gross Income - Part 3 (TORREON, Kimberly Shane) - Sheet3

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    This document contains financial information for Ms. Suko Na and Mr. Laban Pa for the years 2019-2021. It includes computations of their gross income from business, dealings in property, and compensation. It also calculates their taxable income by taking the total gross income and subtracting allowable deductions including mandatory deductions and expenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views1 page

    Inclusion To Gross Income - Part 3 (TORREON, Kimberly Shane) - Sheet3

    Uploaded by

    Shane Torrie
    This document contains financial information for Ms. Suko Na and Mr. Laban Pa for the years 2019-2021. It includes computations of their gross income from business, dealings in property, and compensation. It also calculates their taxable income by taking the total gross income and subtracting allowable deductions including mandatory deductions and expenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    MS.

    SUKO NA GUSTOKANYA PERO-ATIKRA


    2019 2020 Compute the gross income from business:
    Dealings in ordinary assets: Sales 2,500,000.00
    Ordinary taxable income 10,000.00 120,000.00 Less: Sales Returns (250,000.00)
    Net Sales 2,250,000.00
    Dealings in capital assets: Less: Cost of Goods Sold:
    Short-term capital gain 10,000.00 50,000.00 Raw Materials Used 500,000.00
    Short-term capital loss (25,000.00) Direct Labor 500,000.00
    Long-term capital loss (25,000x50%) (12,500.00) Overhead (500,000x150%) 750,000.00
    Net capital gain (loss) (15,000.00) 37,500.00 Decrease in Work in Process Inv. 5,000.00
    Increase in Finished Goods (150,000.00) 1,605,000.00
    Net capital gain (loss) (15,000.00) 37,500.00 Gross Income from business 645,000.00
    Carry-over: lowest of 10,000; 15,000; 25,000 10,000.00 (10,000.00)
    Net capital gain - 27,500.00 Compute the gross income from dealings in property:
    Equipment Selling Price (fully depreciated) 5,000.00
    Net income before dealings in capital assets 10,000.00 120,000.00 Gross Income from Dealings in Property 5,000.00
    Add: Net capital gain - 27,500.00
    Net income 10,000.00 147,500.00 Compute the gross compensation income:
    MR. LABAN PA Net Pay 432,000.00
    2020 2021 Withholding Tax 38,000.00
    Dealings in ordinary assets: Mandatory Contributions 31,200.00
    Ordinary taxable income 100,000.00 50,000.00 Gross Compensation Income 501,200.00

    Dealings in capital assets: Compute the taxable income:


    Short-term capital gain 50,000.00 100,000.00 Gross income from business 645,000.00
    Short-term capital loss (20,000.00) Gross income from dealings in property 5,000.00
    Long-term capital loss (75,000x50%) (37,500.00) Gross compensation income 501,200.00
    Net capital gain (loss) 12,500.00 80,000.00 Total Gross income 1,151,200.00
    Less: Allowable deductions
    Ordinary gain 50,000.00 Mandatory deductions 31,200.00
    Add: Net capital gain 80,000.00 Expenses 608,000.00 639,200.00
    Net income 130,000.00 Taxable Income 512,000.00

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