Name: Jayson G.

Nate 08 Activity 1
Section: BSA 202 May 15,2023

1.How much is the taxable income of the Partnership? Justify your answer.
Answer: The taxable income of the Partnership is P 600,000 because it is a General Professional
Partnership(GPP),GPP is not included in the definition of the corporation under Section 22 of the Tax
Code, therefore it is not taxable as a corporation. But GPP IS Subject to Final Withholding Tax on its
passive income and the P 600,000 of the COS Partnership is a passive income.
2.How much is each partner’s distributive share in the net income of the GPP?
Answer: P 700,000
Solution:
Gross Income P 5,000,000
Expenses ( 3,500,000)
Net Income 1,500,000
Add: Income Subject to final tax 600,000
Distributable Income of the Partnership 2,100,000
Divide by the numbers of partners 3
Distributive Share of a partner P 700,000
3. How much is the taxable income of Cabarles?
Answer: P 2,800,000
Solution:
Gross Income P 3,500,000
Expenses (1,200,000)
Share in the net income of GPP 500,000
Partner’s Taxable Income P 2,800,000

4. Assume the Partnership is a general( commercial) partnership; how much are the partnership’s taxable
income?
Answer: P 1,500,000
Solution:
Gross Income P 5,000,000
Expenses (3,500,000)
Taxable Income P 1,500,000

5.Using the same assumption in item #4, how much is the taxable income of Sia?
Answer: P 1,975,000
Solution:
Gross Income P 2,800,000
Expenses (825,000)
Taxable Income P 1,975,000
6.Using the same assumption in item #4,how much is the final tax of each partner from their share in
the net income of the Partnership?
Answer: The final tax of Cabarles, Ong, and Sia is P 900,000.
Solution:
Cabarles Ong Sia
Income Subject to Final Tax(Net) P 200,000 P 200,000 P 200,000
Share in Net In Income 700,000 700,000 700,000
Income Subject to Final Tax P 900,000 P 900,000 P 900,000