Juana, widow, earning an annual gross compensation income of P300,000 has the following dependent children in 2017Aubrey - baby, born on January 31Barbara - celebrated her 21st birthday last June 12Cristeta - married on January 1Diana -gainfully employed effective July 1Eliza - died of dengue fever on September 30Assuming Juana has two employers, her taxable income in 2017 is:Select one:a.P63,000b.P32,000c.P100,000d.P150,000
Question
Juana, widow, earning an annual gross compensation income of P300,000 has the following dependent children in 2017Aubrey - baby, born on January 31Barbara - celebrated her 21st birthday last June 12Cristeta - married on January 1Diana -gainfully employed effective July 1Eliza - died of dengue fever on September 30Assuming Juana has two employers, her taxable income in 2017 is:Select one:a.P63,000b.P32,000c.P100,000d.P150,000
Solution
To calculate Juana's taxable income, we need to consider her gross income, her status as a widow, and the status of her dependents.
In the Philippines, the tax code allows for certain deductions based on the number of dependents a taxpayer has. However, there are specific rules about who can be considered a dependent.
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Aubrey, born on January 31, can be considered a dependent for the entire year of 2017.
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Barbara, who turned 21 on June 12, can only be considered a dependent for the first half of the year. After she turned 21, she is no longer considered a dependent according to the tax code.
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Cristeta, who got married on January 1, cannot be considered a dependent for any part of the year. Once a child is married, they are no longer considered a dependent.
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Diana, who started working on July 1, can be considered a dependent for the first half of the year. Once she started earning her own income, she is no longer considered a dependent.
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Eliza, who died on September 30, can be considered a dependent for the first three quarters of the year.
Given these considerations, Juana can claim 2 dependents for the entire year (Aubrey and Eliza), 2 dependents for half of the year (Barbara and Diana), and 1 dependent for none of the year (Cristeta).
However, the question does not provide enough information to calculate Juana's taxable income. We would need to know the specific deductions allowed per dependent and any other potential deductions Juana could claim. Once we have that information, we could subtract the total deductions from Juana's gross income to find her taxable income.
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