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TAXATION-2
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The AB & Co. is a general professional partnership, with Partners A and B, both married
each with a minor child is sharing 60%-40% respectively in the partnership net income or loss.
AB & Co. is in its fourth year of operations during taxable year 2018. The partnership withheld
an income tax of 8% on each share of the Partners when they withdrew their share. In 2018, the
partnership and the partners had the following data on income and expenses?
AB & Co:
Gross Income P900,000.00
Operating Expenses 150,000.00
Office Rental expense 120,000.00
Bad Debts 25,000.00
Depreciation Expense of Office Furniture 9,600.00
Partner A
Own Gross Income from Business P 950,000.00
Cost of Goods Sold 300,000.00
Interest Expense on Loans 26,000.00
Bad Debts Expense 17,000.00
Business Expenses 135,000.00
Partner B
Own income and Expenses none