MODULE 4 LONG PROBLEM EXERCISE #2

Maria Makiling decided to resign in March, 2023 from her work in Jabili and she received the
following in 2023:

28,000.00 Monthly Salary for 3 months

15,000.00 Overtime Pay
850,000.00 Separation pay

In May, she used that separation pay to start a merchandising business and in 2023 it resulted
to the following:

1,850,000.00 Sales
19,000.00 Sales Returns
35,000.00 Beginning Inventory
62,000.00 Ending Inventory
1,017,000.00 Purchases
12,000.00 Travelling Expenses
60,000.00 Rent Expenses but the creditable withholding tax was collected
3,000.00 Actual representation expenses
3,200.00 Community Tax
110,000.00 Estimated bad debts

She took a loan worth P800,000 in June 1, 2023. It has 10% annual interest and it is five years to
pay.
She also purchased the following fixed assets / PPE in 2023 with the following prices.
600,000 Vehicle for the business that was purchased in June 1, 2023. It has 25 year useful life
with P60,000 estimated scrap value.
140,000 Sala set furniture with a useful life of 10 years that was purchased in November 1,
2023, with 10 years useful life.
She also received the P400,000 royalty from his publications of books this 2023. The Final tax
though was not paid.
She also donated P100,000 to Department of Science and Technology in September 2023. No
portion of the said donation will be used for administrative purposes.
She also have a total of Special Allowable Itemized Deduction of P47,000.
Compute the Total Taxable Income of Ms. Makiling in 2023.

NOTE:
After you are done answering. Take a picture of the scratch paper that you used in answering.
Post it in the comment section and I will record it as a recitation. DO NOT FORGET TO WRITE
FIRST YOUR SECTION, LAST NAME, FIRST NAME.

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