Mr.

Ted Mosby, a resident citizen, married, an employee and also a self-employed individual, with the
following dependents:

 Legitimate son, 22 years old, single and unemployed

 Another legitimate son, 20 years old, married in the current taxable year and unemployed
 Legitimate daughter, 20 years old, single and unemployed
 Mother of Mr. Ted Mosby

Information from the business of Mr. Ted Mosby:

Gross receipts from services 5,000,000

Cost of service rendered 1,705,000
Salaries and wages 500,000
Loss on cash embezzlement in the business 70,000
Advertising 25,000
Depreciation 70,000
Tax Expenses (including income tax last year of P90,000) 200,000
Pension contribution (including past contribution of P100,000) 250,000
Interest income on bank deposit in the Philippines 65,000
Entertainment Expense 45,000
Charitable contribution to the government for public purpose 150,000
Dividend received from domestic corporation 50,000
Interest expense on bank borrowing for business use 110,000
Documentary stamp tax 500
Community Tax 2,100
Real estate tax on business property 5,000
Car registration for business use 3,000
Municipal licenses 3,000
Fringe benefit to Rank and File 400,000
Fringe benefit to Managerial 340,000

Mr. Ted Mosby also received the following compensation as a chemical engineer in ABC Co.

 Cash representing his annual basic salary of 750,000

 Christmas bonus and cash gift 120,000
 Also received a 13th month pay
 Due to exposure to chemicals, he was given a hazard pay equivalent to 100% of his monthly
salary and an overtime pay of 10% of his total annual salary
 He was also given a honoraria of 100,000

Also showed the following during the taxable year:

Short-term capital gain 250,000

Short-term capital loss 200,000
Long-term capital gain 175,000
 Long-term capital loss 150,000
Royalty income from literary work 430,000
Insurance proceeds received from insurance policy of his deceased father 100,000
Compensation for actual damages for injuries of her wife 50,000
Interest from Expanded Foreign Currency Deposit 15,000
Interest from long-term deposits 5,000
Interest from Bank Deposit- Australia 12,000
Winnings from illegal gambling 25,000
Cash received as inheritance from his father 18,000
Winnings from Philippine Charity 210,000
Winnings from Australia 30,000
Birthday gift from brother in Australia during his birthday 80,000
Income from gift of brother 15,000

Required:

1. Total Income subject to Final Tax

2. Final Tax due
3. Taxable Net Income
4. Income Tax Due
5. Total Tax Exempt