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    2 Easy Questions - Answers

    Uploaded by

    Marj Agustin
    The document provides solutions and answers to 8 easy questions. Question 1 calculates estate tax, applying deductions and exemptions to determine the taxable amount. Question 2 computes personal exemptions for heirs. Question 3 calculates output tax on various sales amounts. Question 4 identifies when a self-employed individual files their quarterly income tax return. Question 5 shows a VAT payable computation applying input and output taxes. Question 6 identifies a progressive tax system. Question 7 addresses the tax treatment of tips and stock dividends. Question 8 demonstrates the computation of allowable charitable deductions.

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    2 Easy Questions - Answers

    Uploaded by

    Marj Agustin
    46 views9 pages
    The document provides solutions and answers to 8 easy questions. Question 1 calculates estate tax, applying deductions and exemptions to determine the taxable amount. Question 2 computes personal exemptions for heirs. Question 3 calculates output tax on various sales amounts. Question 4 identifies when a self-employed individual files their quarterly income tax return. Question 5 shows a VAT payable computation applying input and output taxes. Question 6 identifies a progressive tax system. Question 7 addresses the tax treatment of tips and stock dividends. Question 8 demonstrates the computation of allowable charitable deductions.

    Original Description:

    CPA Quiz bee

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    The document provides solutions and answers to 8 easy questions. Question 1 calculates estate tax, applying deductions and exemptions to determine the taxable amount. Question 2 computes personal exemptions for heirs. Question 3 calculates output tax on various sales amounts. Question 4 identifies when a self-employed individual files their quarterly income tax return. Question 5 shows a VAT payable computation applying input and output taxes. Question 6 identifies a progressive tax system. Question 7 addresses the tax treatment of tips and stock dividends. Question 8 demonstrates the computation of allowable charitable deductions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views9 pages

    2 Easy Questions - Answers

    Uploaded by

    Marj Agustin
    The document provides solutions and answers to 8 easy questions. Question 1 calculates estate tax, applying deductions and exemptions to determine the taxable amount. Question 2 computes personal exemptions for heirs. Question 3 calculates output tax on various sales amounts. Question 4 identifies when a self-employed individual files their quarterly income tax return. Question 5 shows a VAT payable computation applying input and output taxes. Question 6 identifies a progressive tax system. Question 7 addresses the tax treatment of tips and stock dividends. Question 8 demonstrates the computation of allowable charitable deductions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 9

    EASY

    QUESTIONS
    ANSWERS/
    SOLUTIONS
    EASY - QUESTION NO. 1
    ANSWER/SOLUTIONS

    Gross Estate
    Php 7,000,000.00
    (Php5,000,000.00 + 2,000,000.00)
    Deductions (Php200,000.00+ 500,000.00 +
    1,500,000.00
    300,000.00 + 450,000.00 + 50,000.00)
    Estate after deductions Php 5,500,000.00
    Less: Special deductions
    Family Home (1,000,000.00)
    Standard deductions (1,000,000.00)
    Medical Expenses (subject to limit) (500,000.00)
    Taxable Net Estate Php 3,000,000.00
    EASY - QUESTION NO. 2
    ANSWER/SOLUTIONS

    Personal Exemption Php50,000.00


    Two minors legally adopted (2 x 50,000.00
    Php25,000.00)
    Child from previous marriage 25,000.00
    Total Exemption Php125,000.00
    EASY - QUESTION NO. 3
    ANSWER/SOLUTIONS

    Cash sales Php 500,000.00


    Open account sales (280,000.00/1.12) 250,000.00
    Installment sales 220,000.00
    Consignment made January purchase 50,000.00
    Total Php1,020,000.00
    Multiply by: 12%
    Output tax Php 122,400.00
    EASY - QUESTION NO. 4
    ANSWER/SOLUTIONS

    When will Nherwin Hernandez, a self-employed individual, file his


    first (1st) quarter income tax return?
    A. April 30 of the current year
    B. May 15 of the current year
    C. April 15 of the current year
    D. June 15 of the current year

    Under Revenue Memorandum Circular 11-98


    EASY - QUESTION NO. 5
    ANSWER/SOLUTIONS

    Output tax
    Php 600.00
    (5,600.00/1.12)*.12
    Less: Input tax
    (2,240.00*12%) 268.80
    (550.00*12%) 66.00
    VAT payable Php
    265.20

    Section 4.113 Invoicing Requirements


    (A) A VAT-registered person shall issue:

    xxx xxx xxx

    (B) Information contained in VAT Invoice or Official Receipt


    EASY - QUESTION NO. 6
    ANSWER/SOLUTIONS

    A system of taxation that places emphasis on direct rather than


    indirect taxation, with the ability to pay as the principal criterion
    A. Regressive tax system
    B. Progressive tax system
    C. Global tax system
    D. Gross income tax system

    Regressive Tax System The rate of tax decreases as the tax


    base or bracket increases
    Global Tax System Employs the grouping of similar incomes
    and subjecting them to a single tax rate or progressive graduated
    rates.
    Gross Income The taxpayers income tax is fixed or computed
    based on the gross income.
    (Valencia, Edwin G., Roxas, Gregorio F. Income Taxation:
    Principles and Laws with Accounting Applications. 6th ed. Baguio
    City: Valencia Educational Supply, 2013)
    EASY - QUESTION NO. 7
    ANSWER/SOLUTIONS

    Statement 1: Tips or gratuities paid directly to an employee (by a


    customer of the employee) which are not accounted for by the
    employee to the employer are not considered taxable income.
    Statement 2: Stock dividends are never subject to income tax.
    A. True, True
    B. True, False
    C. False, True
    D. False, False

    Tips or gratuities paid directly to an employee (by a customer of the


    employee) which are not accounted for by the employee to the
    employer are considered taxable income. (Section 2.78.1(A), RR
    2-98, as amended)
    Stock dividends are generally not subject to income tax but theyre
    subject to income tax if theres a change in proportion of the capital
    structure
    EASY - QUESTION NO. 8
    ANSWER/SOLUTIONS

    Computation of charitable and other contributions


    Deductible in full (Contribution to IRRI) 10,000.00
    Deduction with limit
    Contribution to religious organization 30,000.00
    Contribution for rehabilitation of veterans 20,000.00
    Total actual contributions 50,000.00
    Limit (5% x 550,000) 27,500.00
    Total 37,500.00
    *Gross Business Income 750,000.00
    Deductions 200,000.00
    Net Income from business before
    Contributions 550,000.00

    Gross income 750,000.00


    Less: Deductions 200,000.00
    Net income before charitable and other
    contributions 550,000.00
    Less: Charitable and other contributions (37,500.00)
    Taxable Net Income 512,500.00

    Valuation The amount of any charitable contribution of property


    other than money shall be based on the acquisition cost of said
    property. (Section 34(H)(3) of the Tax Code, as amended)
    IRRI: R.A. 2707 & P.D. 1620

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