Instruction: Write The Letter of Your Choice On The Space Provided Before The Number
Instruction: Write The Letter of Your Choice On The Space Provided Before The Number
15. Transportation allowance is nontaxable if: 23. Campo Santo received stock options of 500
I. Pre-computed on a daily basis SMC shares with a fair market value of P100 per
II. Paid to employee while on duty share. He subsequently donated the stock
III. Received by employee under employer’s options to his brother. How much is the tax on
benefit rule. the transfer of stock option? _____________
a. I only c. I and II
b. II and III d. I, II and III For numbers 24 and 25
X, an officer of Y Corporation granted stock
16. The amount of 13th month pay and other option for 1,000 shares with P20 par at the
benefits limit for exemption in TRAIN law is: option price P23. The option was exercised
a. P82,000 c. P90,000 when the market price was P30.
b. P30,000 d. P0
24. The tax on the grant of stock option would be
17. These benefits are relatively small value and ____________
they are not considered compensation subject to
income tax. 25. The tax on the exercise of the option would be
a. Fringe benefits ____________
b. 13th month pay and other benefits of P90,000
c. Minimum wage 26. A manufacturing business reported the following
d. De minimis for its first year of operation:
Purchases of raw materials P540,000
18. Which of the following is a taxable compensation Freight in 20,000
income? Raw materials, ending inventory 10,000
a. Separation pay due to resignation Direct Labor 400,000
b. Retirement pay under BIR approved Factory overhead 200,000
retirement plan WIP, end 100,000
c. Separation pay due to disability Finished goods, end 50,000
d. Terminal pay by fact of death Sales 1,275,000
Freight out 12,000
19. Which of the following is a taxable compensation Sales return 25,000
income? Its gross business income is ____________
a. Professional fee, net of CWT
b. Separation pay due to closure of the business 27. Metrobank, Inc. reported the following during the
c. Terminal pay inclusive of P15,000 13th month taxable year:
pay. Interest income P10,000,000
d. Separation pay due to early retirement. Gain on sale of capital
assets (personal) 5,000,000
20. The employee reported a net take home pay of Rent income 2,000,000
P180,000. The amount is net of P180,000 Salaries of bank employees 3,700,000
withholding tax and P1,000 SSS. The amount is Salaries of janitors and guards 1,000,000
inclusive of P5,000, covering a 10-day vacation Depreciation of building 800,000
leave(de minimis) actually availed and P86,000 Depreciation of computers 600,000
13th month pay. His gross compensation Direct supplies used 200,000
income is ______________ Interest expense paid
to depositors 1,500,000
Gross income of Metrobank: ____________
For numbers 28 and 29: Interest income
On March 1, 2018, CLaudette leases a portion (lending) 78,000 43,000
of its commercial building to Mark with the
following terms:
Interest income
Advanced deposit P40,000
Monthly rental 20,000
(from a bank) 61,000 22,000
Annual insurance premium Royalty income
to be paid by the lessee 6,000 (invention) 89,000 17,000
Portion (10 mos.) of real estate Royalty income (books) 5,000 11,500
tax to be paid by lessee 3,000/year Winnings 50,000 60,000
The lease contract also stipulates that a 5% of Prizes 10,000 20,000
Mark’s net revenue will be credited to Claudette Cost of living expenses 97,000 15,000
as commission. Mark’s net revenue during the
year is P2,000,000. 33. Compute the gross income to be reported by
Ralph in 2018: __________
28. Claudette’s 2018 rent income would be
____________ 34. How much is the total income subject to final
income tax? ____________
29. Assume that the advanced deposit is restricted,
the CLaudette’s gross reportable income would
35. Compute the total final income tax: _________
be ______________
32. The following data pertaining to a 5-year lease 37. How much is the contract price?
contract which started October 31, 2018 _________________
Cost of improvement put up
by the lessee P300,000 38. How much is the initial payments?
Estimated useful life of the _________________
improvement 6 years
Date completed March 31, 2019 39. The seized property of a delinquent taxpayer
The income from leasehold improvement was becomes the property of the government. This
reported by the lessor using spread-out method. refers to:
Assuming that the lease contract was a. Distraint c. Forfeiture
pre-terminated on December 31, 2021, how b. Levy d. Compromise
much would be the additional income in 200D
from pre-termination of contract? ____________ 40. The tax rate on inter-corporate dividend income
received by nonresident foreign corporation from
a domestic corporation
For numbers 33 to 34
a. 0% c.15%
Ralph, a resident alien has the following
b. 10% d. 30%
data in taxable year 2018:
Within Outside
Gross sales 1,566,000 342,000
Cost of Sales 567,000 546,000
Business Expenses 99,000 45,000