Multiple choice - Theory Problems

1 C Mr. Brendan (2-52)

2 D
3 D 1 Gross Income 557,588
4 C Less: Operating Expenses 388,475
5 A Taxable Income 169,113
6 B
7 C Gross Income 413,143
8 C Less: Operating Expenses 325,143
9 B Taxable Income 88,000
10 B
11 A 2 Gross Income 557,588
12 B Less: Operating Expenses 388,475
13 A Taxable Income 169,113
14 A
15 A 3 Gross Income 557,588
16 C Less: Operating Expenses 388,475
17 A Taxable Income 169,113

Multipl Choice (2-48,49) 4 Gross Income 557,588

1 A Less: Operating Expenses 388,475
2 D Taxable Income 169,113
3 D
4 A
5 A
6 C
7 B

Multiple Choice OFW

1 C
2 A
3 A
4 B
Problem 1A Pure compensation income Problem 2A
Mr. Bienvenido (2-54)

A Total ompensation Income 125,000

Less: Mandatory Contributions 7,000
Non-taxable 13th Month Pay 10,000
Taxable Compensation Income 108,00
Tax due TAX EXEMPT

B Total Compensation Income 125,000

Add: Overtime,nightshift differential, hazard pay 125,000
Total Income 250,000
Less: Mandatory contribution 7,000
Non-taxable 13th month pay 10,000
Net Taxable Income 233,000
Tax Due TAX EXEMPT

Problem 1B Mr. Braham (2-55)

A Total ompensation Income 160,000
Less: Mandatory Contributions 9,000
Non-taxable 13th Month Pay 13,000
Taxable Compensation Income 138,000 Problem 2B
Tax due TAX EXEMPT

B Total Compensation Income 160,000

Add: Overtime,nightshift differential, hazard pay 205,000
Total Income 365,000
Less: Mandatory contribution 9,000
Non-taxable 13th month pay 13,000
Net Taxable Income 343,000

Tax Due
343,000 - 250,000
93,000 x 15% 13,950
Problem 2A Pure self- employment Problem 3A
Ms. Abrial (2-56)

Gross sale 1,200,000

Gross receipts 450,000
Total sales/receipts 1,650,000
Less: Amount allowed as deduct 250,000
Taxable Income 1,400,000

Tax due
8% of 1,400,000 112,000

Gross sales/Receipts 1,650,000

Less:Cost of Sale 850,000
Gross income 800,000
Less:Operating Expense 380,000 Problem 3B
Taxable Income 420,000

Tax due on 400,000 22,500

On excess: (420,000 - 250,000) 34,000
Tax due on 400,000 56,500

Problem 2B
Architech Adira (2-57)

Gross sale 1,500,000

Gross receipts 750,000
Total sales/receipts 2,250,000
Less: Amount allowed as deduct 250,000
Taxable Income 2,000,000

Tax due
8% of 2,000,000 160,000

Gross sales/Receipts 2,250,000

Less:Cost of Sale 1,100,000
Gross income 1,150,000
Less:Operating Expense 450,000
Taxable Income 700,000

Tax due on 700,000 22,500

 Pure self- employment Problem 4A
Mr. Adolfo (2-58)

Total Sales 5,300,000

Less:Cost of Sale 2,750,000
Gross income 2,550,000
Less:Operating Expense 1,050,000
Taxable Income 1,500,000

Tax under graduated rates

130,000 + (210,000 x 30%) 340000
Less: 8%income tax previously paid
(1,300,000-250,000) 8% 84,000
ANNUAL INCOME TAX PAYABLE 256,000
Problem 4B

Mr Berto (2-59)

Total Sales 4,500,000

Less:Cost of Sale 2,300,000
Gross income 2,200,000
Less:Operating Expense 840,000
Taxable Income 1,360,000

Tax under graduated rates

130,000 + (560,000 x 30%) 298,000
Less: 8%income tax previously paid
(3,000,000-250,000) 8% 220,000
ANNUAL INCOME TAX PAYABLE 78,000
 Pure self- employment Problem 5A
Engr. Cala (2-60)

Gross Receipts 3,850,000

Less:Cost of Sale 2,150,000
Gross income 1,700,000
Less:Operating Expense 800,000
Taxable Income 900,000

Tax due on 800,000 130,000

On excess: (900,000 - 800,000) 30 30,000
Tax due on 400,000 160,000

Dr. Adrina (2-60) Problem 5A

Gross Receipts 5,700,000

Less:Cost of Sale 2,200,000
Gross income 3,500,000
Less:Operating Expense 750,000
Taxable Income 2,750,000

Tax due on 20000,000 490,000

On excess: (2750,000 - 2000,000) 240,000
Tax due on 400,000 730,000
 Pure self- employment
Mr. Blanco (2-61)

Gross Receipts 2,350,000

Less:Cost of Sale 1,050,000
Gross income 1,300,000
Less:Operating Expense 550,000
Net Income from operation 750,000
Add:non-operating income 175,000
Taxable Income 925,000

Tax due on 800,000 130,000

On excess: (925,000 - 800,000) 30% 37,500
Tax due on 400,000 167,500

Mr. Afarius (2-61)

Gross Receipts 5,500,000

Less:Cost of Sale 2,800,000
Gross income 2,700,000
Less:Operating Expense 950,000
Net Income from operation 1,750,000
Add:non-operating income 350,000
Taxable Income 2,100,000

Tax due on 20000,000 490,000

On excess: (2100,000 - 2000,000) 32,000
Tax due on 400,000 522,000
Multiple Choice Theory Multiple Choice Problems
1 A 1C Basic Salary (8,000 x 12) 96,000
2 C Gross commission (4,200,000 x 5%) 210,000
3 C Representation Allowance (1,000 x 12) 12,000
4 E TOTAL Gross income 318,000
5 A
6 D 2C Annual salary (25,000 x12) 300,000
7 D Additional Salary (15,000 x 12) 180,000
8 E Non- taxable Benefits:
9 D 13th month pay 40,000
10 B Productivity incentive pay 150,000
11 F GROSS INCOME 670,000
12 C
13 B 3A Service fee 5,000
14 B 4B Productive Incentive Pay 16,000
15 A 5A
16 B 6A Cash Sales on livestock raised 500,000
17 A Sales of livestock purchased 250,000
Less: Cost of Sales 300,000
Other Income 100,000
GROSS INCOME 550,000

7C Gross Sales 300,000

Cost of Goods Sold 150,000
Other Income 50,000
GROSS INCOME 200,000

8B Rent Income (30,000 x 12) 360,000

Compensation Income (13,000 x 12) 156,000
Less : 13th Month Pay contribution 13,000
Bonus 25,000
Royalties 113,000
80,000
Gross Income 747,000

9A
10 B Contributions by the employer 120,000
Contribution by Ms. J 30,000
Interest income 10,000
Gross Income 160,000

11 B Amount received from the death of the fa 1,000,000

 1
12 B Net Income before write-off 400,000
Less: Bad debt Written-off 40,000
Taxable Income 360,000
Bad debt Recovery 40,000
INCOME 40,000
 2 3
-72,000 16,000
10,000 24,000
-82,000 -8,000
10,000 20,000
10,000 8,000
 Multiple choice Problem 1B
1 A Fringe Benefit Tax
2 C Ms. Astrid (8-22)
3 D
4 C Monetary Value of Fringe Benefit
5 C Percentage Divisor Applicable
6 C FBT rate
7 C (45,000/65%) 35%
8 D
9 D Monetary Value of Fringe Benefit
10 E Percentage Divisor Applicable
11 A FBT rate
12 A (45,000/75%) 25%
13 E
14 D
15 F
16 C
17 E
18 D
19 D
20 D
21 D
Benefit Tax

45,000
65%
35%
24,230.77

45,000
75%
25%
21,666.67
 Multiple choices Multiple Choice Problem
1 B
2 C 1 C Car
3 C Refrigerator
4 D Volks car
5 D Net capital gain
6 C 2
7 B B On the date of sale
8 E Dec. 1,2020
9 B Initial payment
10 A
11 A 3 D
12 D 4 C On the date of sale
13 E Dec. 1,2020
14 B payment received -july 1,2019
Capital gains tax
Tax due

5 B

6 A Selling price
Capital gains tax
Tax due

7 C cost basis of the new principal

8 C Selling price
Capital gains tax
Tax due

9A cost basis of the new principal

10 B Selling price
Capital gains tax
Tax due
 30,000 11 A cost basis of the new principal residence
1,000
11,000 12 A
42,000
13 C Capital gain on sale directly to buyer of shares
300,000 of domestic Corporation held for 6 months
200,000
500,000 14 A Capital loss on sale of land
Net capital loss in 2018
/2
300,000 Net capital loss carry over from 2018
200,000
500,000 15 A
6%
30,000 16 B

17 C Selling price
Capital gains tax
Tax due
4,000,000
6% 18
240000
19 B
2,500,000
20 C
3,000,000
6%
180000

2,500,000

7,000,000
6%
420000
2,500,000

240,000

120,000
40,000
160,000
80000

5,000,000
6%
300000