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Tiong Sang Department Store conducted a sales promotion where customer purchases exceeding P1,000 in one transaction shall be entitled to a ticket for a chance to win P500, 000 raffle prize. Mr. Shing won the prize.
Problem 1: How much shall Tiong Sang withhold from the grand prize?
a. P 200, 000
b. P 100, 000
c. P 50, 000
d. P 0
Problem 2: Tacurong, a resident citizen, won $1,000,000 from the US lottery. The lottery winning is
a. exempts from tax
b. subject to 20% final tax
c. subject to 10% final tax
d. subject to regular tax
Financial Statement Analysis and Preparation
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