Mariposa is a resident citizen employed by Maganda Corporation. She received
the following from her employer during 2020:
Basic compensation income P900,000
13th month pay 75,000
P3,000 monthly transportation allowance 36,000
Productivity incentive pay 20,000
Christmas bonus 25,000
Uniform allowance 16,000
Actual medical allowance 10,000
Rice subsidy 36,000
Required: Determine Mariposa’s taxable net income

Understanding the difference between a cash taxable allowance, a cash taxable benefit and a non-cash taxable benefit is critical when explaining the calculation of net pay to an employee. In your own words, explain whether each allowance and benefit is or is not subject to Canada/Québec Pension Plan (C/QPP) contributions, Employment Insurance (EI) premiums, Québec Parental Insurance Plan premiums and income tax. Provide an example of a cash taxable allowance, a cash taxable benefit and a non-cash taxable benefit

Understanding the difference between a cash taxable allowance, acash taxable benefit and a non-cash taxable benefit is criticalwhen explaining the calculation of net pay to an employee. In yourown words, explain whether each allowance and benefit is or is notsubject to Canada/Québec Pension Plan (C/QPP) contributions,Employment Insurance (EI) premiums, Québec Parental Insurance Planpremiums and income tax. Provide an example of a cash taxableallowance, a cash taxable benefit and a non-cash taxablebenefit.

Prepare an Income Statement from the following information:

Sales $500,000

Sales Discount $650

Sales Return as Allowance $3,000

Beginning Merchandise Inventory $85,000

Purchases $265,000 Transport In $4,200

Purchase Discount $1,500

Purchase Return Allowance $1,700

Closing Merchandise Inventory $76,000

Advertisement Expenses $4,500

Insurance Expenses $1,500

Bank and Fees $1,200

Maintenance Expenses $3,200

Payroll Tax Expenses $7,600

Rent Expenses $12,000

Salaries Expenses $36,000

Supplies Expenses $3,200

Utilities Expenses $1,700

Federal Corporation IncomeTax Expenses $ 1,200