SLIDE 7

SLIDE 27
In a taxable year, a taxpayer constructed a building for business use which cost him
P3,000,000. Improvements were made on the building and an additional P1,500,000
was spent. Unfortunately, the building was totally razed by fire. At this point, the
building had been depreciated for P2,400,000. Recovery from insurance relative to the
loss was P1,800,000. How much shall be deductible as loss?

SLIDE 32
On September 1, 2010, Le Petit Hotel Corporation purchased furniture and equipment with an
estimated useful life of 10 years for P1,220,000 cash. It is expected that the furniture and equipment
will be worth P20,000 at the end of its 10-yr estimated useful life (known as salvage or residual value).

2010

Sept. 1 Furniture and Equipment 1,220,000

Cash 1,220,000

2010

Dec. 31 Depreciation Expense 40,000

 Accumulated Depreciation –Furniture & Equipment 40,000

Depreciation = Asset Cost – Salvage Value / Est. Useful Life

= 1,220,000 – 20,000 / 10 yrs

= 120,000 / 12 * 4 (September 1 to December 31)

SLIDE 63
Katrina, single and a resident citizen, has a gross business
income of P370,000 in 2018. Deductions related to her
business is P80,000. How much is the taxable income and
tax due for 2018?
 SLIDE 80
1) In June 2012, Boris, a resident citizen, received from his employer, fringe benefit of P198,000.
This fringe benefit is subject to the fringe benefit tax. Compute the tax that shall be paid by
Boris’ employer.

Fringe Benefits –
Monetary Value of Fringe Benefit P198,000

Divide by 68%

Grossed-up Monetary Value P291,176

Multiply by 32%

Fringe Benefit Tax P 93,176