Tax Quiz

Name: ACC-50_ Score:
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 Write your final answer inside the provided box.
 Write your answers clearly, ambiguous answers will be considered incorrect.
 Usage of pencil or friction pen in final answers is prohibited.
Problem 1
JM, Single, had the following data for 2018 taxable year:
Gross business income, Philippines 1,000,000
Gross business income, USA 500,000
Business expenses, Philippines 700,000
Business expenses, USA 430,000
Compensation income, Philippines 600,000
Dividend income from a domestic corporations 50,000
Dividend income from a foreign corporation 40,000
Interest income from peso bank deposit- Philippines 20,000
Interest income from bank deposit abroad 30,000
Interest income from FCDS deposits 40,000
Royalty income from compositions 25,000
Raffle draw winnings 10,000
PCSO winnings 200,000
Creditable withholding taxes on business income 125,000
Determine the following assuming the tax payer is a RESIDENT CITIZEN:
a. Taxable Net Income
b. Income Tax Payable
c. Total Final Taxes on Passive Income
d. Total income tax expense
Problem 2
The following cumulative balances during the year on income and expenses were provided by Gerber Mendoza, a
RESIDENT CITIZEN:
1st Q 2nd Q 3rd Q Year
Gross profit from sales P300,000 P650,000 P910,000 P1,200,000
Business expenses 120,000 262,000 405,890 426,700
Dividends- domestic corporation 20,000 20,000 30,000 30,000
Interest income-BPI 4,000 8,000 12,000 16,000
Interest income-UCPB 8,000 12,000 16,000 18,000
Interest income-Metro Bank 5,000 10,000 15,000 30,000
Capital gain on sale of land: 150,000 150,000 150,000 150,000
Selling Price-P600,000;Cost-P450,000
REQUIRED: using the information provided, compute the following:
a. Income tax payable, first quarter
b. Income tax payable, second quarter
c. Income tax payable, third quarter
d. Income tax payable, fourth quarter
e. Total final taxes(for the year) on passive income
f. Total capital gains tax
Problem 3
Assume the following data:
Selling price of building no.1 P15,000,000
Selling price of building no.2 20,000,000
Cost of building no.1 10,000,000
Cost of building no.2 30,000,000
Expenses on sale of building no.1 200,000
Expenses of building no.2 300,000
Fair market value of building no.1 12,000,000
Fair market value of building no.2 8,000,000
Required:
a. Compute the capital gains tax on building no.1
b. Compute the capital gains tax on building no.2
c. Compute the capital gains tax on building no.2 assuming the building is situated abroad.
Problem 4
Mr and Mrs Cruz, residents of Quezon City with three qualified dependent children, provided the following data for
2018 taxable year:
Husband Wife Husband and Wife
Compensation income P850,000 P650,000
Personal and Family expenses (including payment for life insurance 30,000 20,000
of P2,000 each)
Premium payment for health/hospitalization insurance 5,000 5,000
Income from practice of profession 800,000
Expenses-practice of profession 320,000
Income from trading business 250,000
Expenses from trading business 100,000
Required:
a. Determine the taxable income of Mr Cruz
b. Determine the taxable income of Mrs Cruz
c. Determine the consolidated income tax payable of Mr and Mrs Cruz

Problem 5
Daniel, married to Kath, is a citizen and resident of the Philippines. The parents of the couple are also living with
the spouses for chief support. They had the following data for 2018 taxable year:
Daniel Kath Daniel and Kath
Gross income from business P600,000 - -
Gross income from profession net of P40,000 CWTx - P360,000 -
Rental income, net 190,000
Dividend income-domestic corporation 40,000 - -
Dividend income-resident corporation - 20,000 -
Dividend income-non-resident corporation - - 10,000
Interest income on notes receivable 6,000 4,000 2,000
Interest on Philippine bank deposit, net 3,200 2,400 8,000
Interest on Philippine bank deposit (FCDU) 4,000 4,000 2,000
Interest on bank deposit abroad 5,000 5,000 5,000
Interest income on long- term bank deposit - - 20,000
Interest on government bonds - 10,000 -
Royalty income-literary works 10,000 - -
Royalty income(other than literary works) - - 12,000
Capital gain on sale directly to buyer at P550,000 of shares of 150,000 - -
domestic corporation
Capital gain on sale directly to a buyer of land held as investment - - 500,000
in Quezon City SP=P5,000,000
Capital gain on sale of land held as an investment abroad - - 500,000
Gain on sale thru New York Stock Exchange at P100,000 of shares - - 30,000
of domestic corporation
Loss on sale thru Philippine Stock Exchange at P100,000 of shares - - 10,000
of domestic corporation SP=100,000
Expenses-business/profession 350,000 200,000 75,000
Determine the following:
a. Total capital gains taxes paid by the spouses
b. Total final taxes withheld on passive income of the spouses
c. Taxable income of Daniel
d. Taxable income of Kath

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Name: ACC-50_ Score:

Take Home Quiz

Determine the following assuming the tax payer is a RESIDENT CITIZEN:

a. Taxable Net Income

b. Income Tax Payable

c. Total Final Taxes on Passive Income

d. Total income tax expense

b. Income tax payable, second quarter

c. Income tax payable, third quarter

d. Income tax payable, fourth quarter

e. Total final taxes(for the year) on passive income

f. Total capital gains tax

b. Compute the capital gains tax on building no.2

b. Determine the taxable income of Mrs Cruz

c. Determine the consolidated income tax payable of Mr and Mrs Cruz

Determine the following:

a. Total capital gains taxes paid by the spouses

b. Total final taxes withheld on passive income of the spouses

c. Taxable income of Daniel

d. Taxable income of Kath

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