Reference no: EM132862581
Questions -
Q1. Cliff is a self-employed and/or professional. He provided the following information for 2020 taxable year
Gross sales P1,650,000
Cost of sales 500,000
Business expenses 425,000
Rental income (net) 308,750
Philippine charity sweepstakes winnings 500,000
Royalty income books 120,000
Other royalty income - Philippines 60,000
Dividend income- domestic corporations 40,000
Interest income, BDO QC 100,000
Interest income received from a depository bank 50,000 under FCDS, Philippines
Creditable withholding tax from business income 65,000
Quarterly tax payments 82,500
How much is the income tax payable of Cliff?
a. P57,500
b. P10,500
c. P205,000
d. P9,500
Q2. Cliff is a self-employed and/or professional. He provided the following information for 2020 taxable year
Gross sales P1,650,000
Cost of sales 500,000
Business expenses 425,000
Rental income (net) 308,750
Philippine charity sweepstakes winnings 500,000
Royalty income books 120,000
Other royalty income - Philippines 60,000
Dividend income- domestic corporations 40,000
Interest income, BDO QC 100,000
Interest income received from a depository bank 50,000 under FCDS, Philippines
Creditable withholding tax from business income 65,000
Quarterly tax payments 82,500
How much is the income tax payable of Cliff assuming he opted to taxed at 8% income tax rate?
a. (P9,500)
b. P205,000
c. P57,500
d. P10,500
Q3. Cliff is deriving compensation and business income. He provided the following information for 2020 taxable year
Gross compensation income P600,0000
Gross sales 1,650,000
Cost of sales 500,000
Business expenses 425,000
Rental income (net) 308,750
Philippine charity sweepstakes winnings 500,000
Royalty income books 120,000
Other royalty income - Philippines 60,000
Dividend income domestic corporations 40,000
Interest income, BDO QC 100,000
Interest income received from a depository 50,000 bank under FCDS Philippines
Creditable withholding tax from business income 65,000
Quarterly tax payments 82,500
How much is the income tax payable of Cliff assuming he opted to De taxed at 8% income tax rate?
a. P90,500
b. P205,000
c. P89,500
d. P57,500
Q4. Michael Cabarles, single, has the following income and expenses for the year 2020. He supports an eight-year-old illegitimate child.
Professional Income, net of P60,000 P540,000 withholding tax
Rental income (net) 47,500
Rewards as BIR informer 30,000
Wagering gains 50,000
Kickbacks received from suppliers of clients 40,000
Interest income on time deposit (net) 32,000
Dividend income from domestic corporations 75,000
Professional expenses 325,000
Household expenses 24,000
Premium payment on health insurance 4,000
Facilitation fees paid to government agencies 15,000
Compute the amount of his taxable income subject to basic tax for 2018?
a. P415,000
b. P445,000
c. P325,000
d. P340,000
Q5. A resident citizen, married, with two (2) qualified dependent children has the following data for the year 2020:
Gross sales, Philippines P5,000,000
Sales returns and allowances, Philippines 500,000
Cost of sales, Philippines 1,500,000
Gross sales, Ukraine 3,000,000
Sales returns and allowances, Ukraine 200,000
Cost of sales, Ukraine 800,000
Business expenses, Philippines 500,000
Business expenses, Ukraine 300,000
Interest income, peso bank deposit BDO-Marikina 20,000
Interest income, US dollar deposit, BDO-Mandaluyong 50,000
Gain from sale of residential house and lot 500,000 (selling price, P3,000,000; FMV, time of sale, P5,000,000)
Gain from sale of shares of stock listed and traded in the 30,000 local stock exchange (selling price, P100,000)
Gain from sale of shares of stock not traded in the local 150,000 stock exchange
How much is the total final tax on passive income?
a. P14,000
b. P7,750
c. P11,500
d. P4,000
Q6. A resident citizen, married, with two (2) qualified dependent children has the following data for the year 2020:
Gross sales, Philippines P5,000,000
Sales returns and allowances, Philippines 500,000
Cost of sales, Philippines 1,500,000
Gross sales, Ukraine 3,000,000
Sales returns and allowances, Ukraine 200,000
Cost of sales, Ukraine 800,000
Business expenses, Philippines 500,000
Business expenses, Ukraine 300,000
Interest income, peso bank deposit BDO-Marikina 20,000
Interest income, US dollar deposit, BDO-Mandaluyong 50,000
Gain from sale of residential house and lot 500,000 (selling price, P3,000,000; FMV, time of sale, P5,000,000)
Gain from sale of shares of stock listed and traded in the 30,000 local stock exchange (selling price, P100,000)
Gain from sale of shares of stock not traded in the local 150,000 stock exchange
How much is the capital gains tax due?
a. P310,000
b. P180,000
c. P300,000
d. P322,500
Q7. A resident citizen, married, with two (2) qualified dependent children has the following data for the year 2020:
Gross sales, Philippines P5,000,000
Sales returns and allowances, Philippines 500,000
Cost of sales, Philippines 1,500,000
Gross sales, Ukraine 3,000,000
Sales returns and allowances, Ukraine 200,000
Cost of sales, Ukraine 800,000
Business expenses, Philippines 500,000
Business expenses, Ukraine 300,000
Interest income, peso bank deposit BDO-Marikina 20,000
Interest income, US dollar deposit, BDO-Mandaluyong 50,000
Gain from sale of residential house and lot 500,000 (selling price, P3,000,000; FMV, time of sale, P5,000,000)
Gain from sale of shares of stock listed and traded in the 30,000 local stock exchange (selling price, P100,000)
Gain from sale of shares of stock not traded in the local 150,000 stock exchange
How much is the taxable net income?
a. P4,200,000
b. P4,700,000
c. P2,900,000
d. P4,280,000