LESSON 3

TOPIC: Gross Income determination

Assignment:

1. What is the concept of income?

- It is the flow of money or goods according to an individual or a group of
individuals, a firm, or the economy over some period. It may originate from the
sale of productive services (as wages, interest, profit, and rent).

Quiz:

1. What are the elements of gross income?

- Gross income is the amount an individual or business makes before deductions
are added in. For individuals, gross income is the total salary a person earns
before taxes, and in business, gross income is the amount a company makes
minus direct expenses (such as operating costs).

2. What are the types of income taxpayers?

- Taxpayers can be classified into two major categories – individual and
Corporation. A Corporation is a legal entity that is separate from the owners for
tax purposes.
- For Individual taxpayers – it can be classified as either a citizen or an alien (an
alien is a person who resides within the borders of a country and is not a national
of that country). A citizen can further be classified as either a resident citizen or a
non-resident citizen.
- For Corporations taxpayers - it can be classified into domestic, foreign and
partnership. A foreign corporation is either resident foreign or non-resident
foreign corporation. A resident foreign corporation is a foreign corporation
engaged in trade or business in the country.

Reference: Taxpayer - Wikipedia. (2017, May 18). Taxpayer - Wikipedia.

https://en.wikipedia.org/wiki/Taxpayer#:~:text=Taxpayers%20can%20be%20classified%20into%20two
%20major%20categories%20%E2%80%93%20individual%20and%20corporation..
Note: Please check Reference Folder to get the answer of Assignment and Quiz