1.

Jerik

Salaries expense 100,000

Depreciation expense 15,000
Rent and other expense 50,000
Interest expense 23,400
(30,000 - (16,000/80% x 33%))
Total deduction 188,400 B

Gross Profit 500,000

Interest income fr client notes 12,000
Total 512,000
Less: Deduction 188,400
Taxable income 323,600 B

Sales 900,000 Total Sales

Interest income fr client notes 12,000 Less: OSD
Total sales 912,000
OSD rate 40%
OSD 364,800

Total Sales 912,000

OIT rate 8%
72,960 A

Mr. Aguin
Profesional fee 600,000
Ordinary gain 20,000
Total Compensation 620,000
Less:
Ordinary loss 40,000
Other business expenses 200,000 240,000
Net income 380,000
Add: Net Capital Gain
Long term Capital gain (80,000x 50%) 40,000
Short term capital gain 45,000
Long term Capital loss (90,000x 50%) (45,000)
Short term capital loss (30,000) 10,000
Taxable income 390,000

Jerson
Compensation Income 280,000
Rental Income (Phil) 50,000
Rental Income (Abroad) 100,000
Royalties (Abroad) 25,000
Foreign Dividends 40,000
Taxable Income 495,000 C

Compensation Income 280,000

Rental Income (Phil) 50,000
Taxable Income 330,000 A

Mr. Markey
Sales 2,500,000 Taxable Income
Less: COS 1,000,000 Less: Lower Limt
Gross income from operation 1,500,000 Excess
GPP Share net income 200,000 Marginal rate
Subject to RIT 1,700,000 Income Tax Due
Less: Deduction 700,000
Net Income 1,000,000

Sales 2,500,000
GPP Share net income 200,000
Total Sales 2,700,000
Less: Lower Limit 250,000
Total 2,450,000
OIT rate 8%
Income Tax Due 196,000 C
912,000
364,800
547,200 B
 Tax Due
1,000,000
800,000 130,000
200,000
30% 60,000
190,000 C