Number 32.

Cost of leasehold improvement ₱300,000

Less: Depreciation for remaining term of lease -₱229,167
Estimated Book Value, end of the lease ₱70,833
Divide: Remaining term of the lease 4 7/12 years
Annual Income to be recognized by the lessor ₱15,455
Multiply: Date of compeletion to date of termination of lease 2.75 years

Cummulative income recognized as of December 31, 2021 ₱42,500

Cost of leasehold impovement ₱300,000

Less: Depreciation from completion until the termination date -₱137,500.00
BV at termination date (the should be income as of Dec. 31, 2021) ₱162,500
Less: cummulative Income already recognized -₱42,500
Additional Income to be recognized ₱120,000
Gross sales ₱1,566,000
Less: cost of Sales -₱567,000
Interest income (lending) ₱78,000
Prizes ₱10,000
Gross income: ₱1,087,000

Rate Final tax

Interest income (bank) 61,000 20% ₱12,200.00

Royalty income (invention) 89,000

Royalty income (books) 5,000
Winnings 50,000
205,000
Number 36-38 Downpayment (cash) 50,000

Downpayment (property@FV) 100,000

Mortgage Assumed 450,000
Installment Receivable (100k+200k+300k+400k) 1,000,000
Selling price 1,600,000

Selling price 1,600,000

Add: Excess of Mortgage over cost (450,000-400,000) 50,000
Less: Mortgage Assumed -450,000
Contract Price 1,200,000

Downpayment (cash) 50,000

Downpayment (FV of property) 100,000
Excess of mortgage over cost 50,000
installment payment (1st year) 100,000
Initial payment

Gross Profit/Contract Price * Collection per year = income recognize

Gross profit = selling price - cost of sale

 Final tax
₱12,200.00

00 20% ₱17,800.00
0 10% ₱500.00
00 20% ₱10,000.00
000 ₱40,500.00
00

000
000
0,000 Note: Memorize the formula
0,000

0,000
00
0,000
0,000

00
000
00
000