Business taxation accounting exam pracice materials PDF

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1) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gr...

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1) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the total income tax liability of Mr. Onyx if he opted to be taxed at 8% fixed rate on his business income? ● P513,000 2) In 2018, mr. Bladimir, Senior Executive of Antti International Corp. is both an employee and businessman. His records show the following income and expenses relative to his employment and poultry farm business: Annual compensation income, including 13th month pay and other benefit of P215,000 but net of mandatory contribution to SSS, Philhealth and HDMF: P 2,220,000 (3,250,000 - 375,000 - 975,000 - 640,000) Taxable compensation income is ● 2,130,000 3) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the taxable business income of Mr. Onyx, if he opted to be tax at 8% fixed rate? ● P2,500,000 4) Architect Adira offers architectural design services. She is also the sole proprietor of Aza Art Supplies store. In 2018, her gross receipts from services amounted to P750,000 while her gross sales from the store was P1,500,000. She … availed of the 8% income tax rate. Arch Adira’s income tax liability for 2018 is: ● 160,000 5) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other

benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the total income tax liability of Mr. Onyx if he did not opted for the 8% fixed rate? ● P589,200 6) In 2018, mr. Bladimir, Senior Executive of Antti International Corp. is both an employee and businessman. His records show the following income and expenses relative to his employment and poultry farm business: Annual compensation income, including 13th month pay and other benefit of P215,000 but net of mandatory contribution to SSS, Philhealth and HDMF: P 2,220,000 (3,250,000 - 375,000 - 975,000 - 640,000) Total Taxable income is: ● 4,140,000 7) Architect Adira offers architectural design services. She is also the sole proprietor of Aza Art Supplies store. In 2018, her gross receipts from services amounted to P750,000 while her gross sales from the store was P1,500,000. Cost of sales was P1,000,000 and operating expense was P450,000. Architect Adira did not opt to be tax at the income tax rate at 8% income tax rate. Arch. Adira’s income tax due for 2018 is: ● 105,000 8) Ms. Andrea, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Ms. Andrea opted to be taxed at 8% income tax rate on her gross sales for her income from business. How much is the total taxable compensation income? ● P2,310,000 9) In 2018, mr. Bladimir, Senior Executive of Antti International Corp. is both an employee and businessman. His records show the following income and expenses relative to his employment and poultry farm business: Annual compensation income, including 13th month pay and other benefit of P215,000 but net of mandatory contribution to SSS, Philhealth and HDMF: P 2,220,000 (3,250,000 - 375,000 - 975,000 - 640,000)

Total Income tax due is: ● 1,174,000 10) Mr. Andres, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Mr. Andres did not signify his intention to be taxed at 8% income tax rate. How much the taxable business income of Mr. Andres? ● P785,000 11) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the taxable compensation income of Mr. Onynx? ● P1,410,000 12) Mr. Andres, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Mr. Andres did not signify his intention to be taxed at 8% income tax rate. How much is the total taxable income subject to graduated tax rate? ● P3,095,000 13) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the income tax due on taxable compensation income of Mr. Onynx? ● P313,000 14) Ms. Andrea, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000)

Ms. Andrea opted to be taxed at 8% income tax rate on her gross sales for her income from business. How much is income tax due on business income at 8% flat rate? ● P142,800 15) Ms. Andrea, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Ms. Andrea opted to be taxed at 8% income tax rate on her gross sales for her income from business. How much is the total income tax liability of Ms. Andrea? ● P732,000 16) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the taxable business income of Mr. Onynx if he did not opt to be taxed at 8% fixed rate? ● P900,000 17) Mr. Andres, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Mr. Andres did not signify his intention to be taxed at 8% income tax rate. How much is the total income tax due on all income of Mr. Andres? ● P840,400 18) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the income tax due on business income of Mr. Onynx if he opted to be taxed at 8% fixed rate? ● 200,000

19) Ms. Andrea, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Ms. Andrea opted to be taxed at 8% income tax rate on her gross sales for her income from business. How much is the total taxable income subject to 8% flat rate? ● P1,785,000 20) Ms. Andrea, advertising director of REA Corporation has the following records for her income from employment and souvenir shop business in 2019. (given amount: 2,400,00 - 1,700,000 - 85,000 - 700,000 - 300,000) Ms. Andrea opted to be taxed at 8% income tax rate on her gross sales for her income from business. How much is income tax due on compensation? ● P589,200 21) In 2018, mr. Bladimir, Senior Executive of Antti International Corp. is both an employee and businessman. His records show the following income and expenses relative to his employment and poultry farm business: Annual compensation income, including 13th month pay and other benefit of P215,000 but net of mandatory contribution to SSS, Philhealth and HDMF: P 2,220,000 (3,250,000 - 375,000 - 975,000 - 640,000) Taxable business income is ● 2,010,000 22) Architect Adira offers architectural design services. She is also the sole proprietor of Aza Art Supplies store. In 2018, her gross receipts from services amounted to P750,000 while her gross sales from the store was P1,500,000. She … availed of the 8% income tax rate. Arch. Adira’s total taxable income for 2018 is: ● 2,250,000 23) Architect Adira offers architectural design services. She is also the sole proprietor of Aza Art Supplies store. In 2018, her gross receipts from services amounted to P750,000 while her gross sales from the store was P1,500,000. Cost of sales was P1,000,000 and operating expense was P450,000. Architect Adira did not opt to be tax at the income tax rate at 8% income tax rate. Arch. Adira’s taxable income for 2018 is ● 700,000

24) Which is true with the regular income tax? ● Tax is payable at regular intervals 25) Mr. Onyx, a financial comptroller of XYZ company, earned annual compensation in 2019 of P1,500,000 inclusive of 13th month pay and other benefits in the amount of P120,000, but net of mandatory contributions to SSS and Philhealth. Aside from employment income, he owns a convenience store, with gross sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively, and with non-operating income of P100,000. How much is the total taxable income of Mr. Onynx if he did not opt for the 8% fixed tax rate? ● P2,310,000...