1. **Problem 1: Compute tax due on total taxable compensation for Lea earning 640000 in 2023 using the tax table.** Assuming the tax table is the Philippine income tax rates for individuals in 2023: - For annual income over 250000 up to 400000, tax is 20 of excess over 250000 - For 400001 to 800000, tax is 30000 plus 25 of excess over 400000 Since 640000 is in the 400001 to 800000 bracket: $$\text{Tax} = 30000 + 0.25 \times (640000 - 400000) = 30000 + 0.25 \times 240000 = 30000 + 60000 = 90000$$ 2. **Problem 2: Lea's manufacturing business net taxable income is 500000 in 2024. Calculate tax due and rate using graduated rates.** Using the same tax model for corporations/individuals (graduated): - 500000 lies in the 400001 to 800000 bracket Tax is: $$= 30000 + 0.25 \times (500000 - 400000) = 30000 + 0.25 \times 100000 = 30000 + 25000 = 55000$$ Tax rate percentage is: $$\frac{55000}{500000} \times 100 = 11\%$$ 3. **Problem 3: Calculate tax due and rate if Lea opts for the preferential rate of 8% on 500000 net taxable income.** Tax due at 8%: $$500000 \times 0.08 = 40000$$ Tax rate percentage is: $$8\%$$ **Final answers:** - Tax due on 640000 compensation: 90000 - Tax due on 500000 net income (graduated): 55000 at 11 percent - Tax due on 500000 net income (preferential 8%): 40000 at 8 percent