Anna is a scholarship grantee of ABC Company. In consideration of Anna’s excellent academic performance, she received a P100,000 award form ABC Company with the condition that after graduation, she...

Anna is a scholarship grantee of ABC Company. In consideration of Anna’s excellent academic performance, she received a P100,000 award form ABC Company with the condition that after graduation, she will render at least 1 year service to ABC. Is the award taxable?

A. Yes, it is not excluded from gross income because it is in consideration of future service.