Tax Answers

8/10/2019 Tax Answers

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Problem 10-1 True or False

1 TRUE2 FALSE3 FALSE4 TRUE5 FALSE

6 TRUE7 FALSE8 TRUE9 FALSE

10 TRUE11 FALSE12 FALSE13 FALSE14 FALSE15 FALSE16 FALSE



within withoutCompensation Income PhP 250,000.00 PhP -Business Income PhP 500,000.00 PhP 600,000.00Business Expenses PhP 200,000.00 PhP 300,000.00Dividend Income PhP 50,000.00 PhP 100,000.00

Resident Citizen (taxable forincome within and without)

Compensation Income PhP 250,000.00Business Income PhP 1,100,000.00

Less: Business Expenses PhP (500,000.00) Dividend Income* PhP 100,000.00Taxable Income (before

Personal Exemption PhP 950,000.00

Answer: PhP 950,000

Problem 10-9 Net Taxable Income of Resident Citizen

Required: Net Taxable Income before personal exemption

*only dividend income from sources outside the Philippines are subject to the tabular tax rate since income fromwithin are already subject to final tax



1Q 2Q 3Q 4QSales (non-cumulative) PhP 500,000 PhP 600,000 PhP 400,000 PhP 900,000Operating expenses before interest and

contribution PhP 120,000 PhP 150,000 PhP 100,000 PhP 160,000Interest expenses PhP 10,000 PhP 10,000 PhP 15,000 PhP 15,000

Contribution (deductible in full) PhP 20,000 PhP 40,000Other revenue:Dividend income (domestic) PhP 40,000Royalty income PhP 60,000Rent income PhP 30,000 PhP 30,000 PhP 30,000 PhP 30,000Interest income PhP 15,000 PhP 10,000 PhP 15,000 PhP 20,000

Required:

1Q 2Q 3Q 4QNon-taxable IncomeDividend Income (received from anotherdomestic corporation) PhP 40,000 PhP - PhP - PhP -

Taxable Income

40% of Sales - Gross Profit (cumulative) PhP 200,000 PhP 440,000 PhP 600,000 PhP 960,000Rent Income (gross) PhP 30,000 PhP 60,000 PhP 90,000 PhP 120,000Less: Interest Expense (reduced by 33%

pursuant to RA 9337) PhP (5,050) PhP (11,750) PhP (21,800) PhP (30,200)

Less: Contributions (deductible in full) PhP - PhP (20,000) PhP (20,000) PhP (60,000) Less: Operating Expenses PhP (120,000) PhP (270,000) PhP (370,000) PhP (530,000) Taxable Income PhP 104,950 PhP 198,250 PhP 278,200 PhP 459,800Income Tax (@ 30%) PhP 31,485 PhP 59,475 PhP 83,460 PhP 137,940Less: Payment previous quarters PhP - PhP (31,485) PhP (59,475) PhP (83,460)

Quarterly Income Tax Due and Payable PhP 31,485 PhP 27,990 PhP 23,985 PhP 54,480

Year (Total)Tax on Royalty (per quarter @ 20%) PhP - PhP 12,000 PhP - PhP - PhP 12,000

Tax on Interest Income (per quarter @20%) PhP 3,000 PhP 2,000 PhP 3,000 PhP 4,000 PhP 12,000Total Passive Income Tax PhP 3,000 PhP 14,000 PhP 3,000 PhP 4,000 PhP 24,000

ANSWERS 1Q 2Q 3Q 4Q

1. Quarterly Income Tax Due and PayablePhP 31,485 PhP 27,990 PhP 23,985 PhP 54,480

2. Income tax still due and payable in thefourth quarter

PhP 54,480

3. Total passive income tax PhP 24,000

Passive Income within subject to Final Tax (non cumulative)

(Quarters)

Quarters (Year 200x)Problem 10-13 Quarterly Income Tax

Gross Profit is 40% based on sales.

1. Quarterly Income tax due and payable2. Income tax still due and payable in the fourth quarter

3. Total passive income tax



Problem 11-5 Multiple Choice

1 C2 B3 A4 D5 D

6 B7 B8 D9 D

10 A



Gross Compensation Income PhP 200,000Gross Receipts derived from rentincome PhP 50,000Personal Living expenses PhP 180,000

Premium Payments onHospitalization Insurance PhP 5,000

Gross Compensation Income PhP 200,000Net Income from Rent

Rent Income PhP 50,000Less: Optional StandardDeduction @ 40% PhP (20,000) PhP 30,000

Net Income (before personalexemption) PhP 230,000Less: Personal Exemption PhP (50,000)

Hospitalization Insurance (limit of200/month or 2,400 per year) PhP (2,400)

PhP 177,600

Answer: C. PhP 177,600

Problem 11-14 Net Taxable Income

Required: Net Taxable Income (best option)

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