Reference no: EM132859486

Questions -

Q1. Mr. Redmare, a resident citizen of the Philippines, had shares of stock of a domestic corporation held as investment that he acquired for a purchase price of P250,000, excluding acquisition expenses of P7,500. The shares were not listed and traded in the local stock exchange. He sold the shares directly to the buyer for a selling price of P500,000 when the FMV was P450,000. He incurred selling expenses of P13,500. How much is the capital gains tax?

Q2. Mr. Omagana, a resident Japanese, owned 2,000 common shares of San Miguel Corporation with book value of P1,000,000. He sold half to Mr. Hapona, a direct buyer, for P1,000,000. The other half through the Philippine Stock Exchange for P950,000, inclusive of the broker's fee of P50,000. How much is the final income tax?

Q3. Miss Bae provided information to the government, which led the capture and seizure of smuggled goods with FMV of P 20, 000, 000. If the government destroyed the goods seized because these are regarded as harmful to health, how much cash reward would Ms. Bae receive?

Q4. In 2019, Sikanto Tinabangsit, a Thai citizen and the reigning WBO Super Featherweight Champion, successfully defended his crown against Kid Laban Gurruud at the Big Dome just a day after he arrived here in the Philippines and received P12 million in cash and a Cayenne with fair value of P8 Million. How much is his final withholding tax?

Q5. In 200A, Mr. Rosario acquired his principal residence for P6,000,000. He sold it to Mr. Dela Cruz for P12,000,000 in 200D. Within 30 days, he wrote the BIR for tax exemption because he intends to use the entire sales proceeds to purchase a new principal residence. How much is the basis of the new residence for taxation purposes if he actually acquired for P15,000,000?

Q6. Mariang is a Pilipinas Got Talent champion. She won P2million as cash prize, a house and lot at ABC Homes in Baguio City with the total fair value of P5 million, and a recording contract with Sony Music Inc. for P10 million in two years. How much his income tax, if any?

Q7. Mr. Joshie, a Filipino citizen and a resident of Baguio City, won P10,000 in a PCSO draw last May 8, 2018. His income tax is:

Q8. Mr. Abu, a Japanese engineer residing in Tokyo, Japan, was contracted by a domestic corporation to assemble in the Philippines an equipment it bought in Japan. He started to work in Japan and spent 10 days there. The assembling job was completed in the Philippines for another 20 days. He was paid P300,000 for his job. How much is the income from Philippine source?

Q9. Maki is a stockholder in both Agrix Corporation (domestic corporation) and Atlanta corporation (non-resident foreign corporation). During the year, Jhaeron earned P100,000 dividends from Agrix and P300,000 dividends from Atlanta. Maki is a Filipino citizen residing in the Philippines. How much of the dividend income of Maki is subject to income tax in the Philippines?

Q10. Ms. ABC bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years. The value of the policy is P1 Million. After paying 6 years of premium, Ms. ABC died and her heirs as beneficiaries received P1M from the insurance company. How much is the final tax on the transaction?

Q11. Mrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information to the Bureau of internal revenue unpaid taxes leading to the recovery of P9,500,000. How much is the net amount to be received by the informant after deduction of final taxes?

Q12. Joy, a resident alien, works home online and submits her output to clients. She collected P800,000 service fee from foreign clients and P200,000 from Philippine resident clients. How much income is earned by Gareth outside the Philippines?

Q13. Wendy Corp. reported the following data for 2019. Total net sales - P4,000,000; Goods purchased - P2,400,000; Beginning Inventory - P400,000; Ending Inventory - P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables - P120,000; Using cash basis, compute the total income subject to income tax.

Q14. Yeri Corp. reported the following data for 2019. Total net sales - P4,000,000; Goods purchased - P2,400,000; Beginning Inventory - P400,000; Ending Inventory - P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables - P120,000; Using Accrual Basis, compute the total income subject to income tax.

Q15. Irene sold his stocks in Seulgi Corporation (domestic corporation) to a foreign investor at a gain of P800,000. The foreign investor is a corporation abroad which is not registered as doing business in the Philippines. How much of Irene's income is considered as coming from Philippine source?