Reference no: EM132824683
Questions -
Q1. A taxpayer paid the following salaries during the year:
Salaries of administrative employees P80,000
Salaries of sales and marketing employees 70,000
Salaries of factory production workers 120,000
Compute the deductible salaries expense.
Q2. A taxpayer paid P45,000 property insurance covering a 12-month coverage starting March 1, 2018. Compute the deductible insurance expense in 2018.
Q3. On September 30, 2018, a taxpayer borrowed P1,000,000, at a10% annual interest, to finance his acquisition of a luxury car. Compute the deductible interest expense.
Q4. On July 1, 2018, a taxpayer purchased equipment for P500,000 and was estimated to be useful until July 1, 2023, with an expected P100,000 residual value. Compute the 2018 depreciation expense using straight line method.
Q5. S Corporation has office supplies valued at P40,000 on January 1, 2018. At the end of the first calendar quarter, it has P80,000 worth of office supplies. Total supplies purchased were P250,000 during the period. Compute the supplies expense to be deducted during the first quarter.
Q6. A storm resulted in the loss of the following livestock:
Value of two heifers(purchased at P15,000 each) P40,000
Value of a bull (purchased for 18,000) 24,000
Value of twelve calves worth P6,000 each 72,000
Total value of lost livestock 136,000
Determine the deductible loss for tax purposes.
Q7. Ms. J, a professional practitioner, incurred the following expenses during the period:
Salaries of household maids P50,000
Salaries of office staff 30,000
Office utilities 12,000
Office supplies 8,000
Depreciation on personal car 15,000
Depreciation of office equipment 20,000
Compute the total deductible expenses.
Q8. The following relates to the building of a taxpayer:
Fair market value P6,000,000
Purchase price 5,000,000
Carrying amount 4,500,000
Remaining useful life 9 years
Depreciation method straight line
What is the deductible amount of depreciation expense?
Q9. The personal car of the taxpayer had the following data:
Fair market value P6,000,000
Purchase price 5,000,000
Estimated useful life 10 years
What is the deductible annual depreciation expense.
Q10. The following relates to the inventory of tools held by the taxpayer:
Inventory of tools, January 1, 2018 P120,000
Purchases of tools 300,000
Inventory of tools, December 31, 2018 140,000
What is the relates to the inventory of tools held by the taxpayer.