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Exclusion from Gross Income Multiple Choice – Problems Mr. Chua collected the P 1,000,000 insurance proceeds of Mr. Sy which he bought from the latter for P 400,000. Before the death of Mr. Sy, Mr Chua paid a total premium of P 200,000. What is the exclusion in gross income and inclusion in gross in...

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Exclusion from Gross Income Multiple Choice – Problems 1. Mr. Chua collected the P 1,000,000 insurance proceeds of Mr. Sy which he bought from the latter for P 400,000. Before the death of Mr. Sy, Mr Chua paid a total premium of P 200,000. What is the exclusion in gross income and inclusion in gross income, respectively? a. P 1,000,000; P 0 b. P 600,000; P 400,000 c. P 400,000; P 600,000 d. P 0; P 1,000,000 2. Mr. Bisligo surrendered his life insurance policy and received a cash surrendered value of P 800,000 after contributing P 700,000 in annual premiums. Determine the total exclusion in gross income and the inclusion in gross income, respectively? a. P 800,000; P 0 b. P 700,000; P 100,000 c. P 100,000; P 700,000 d. P 0; P 800,000 3. Mr. Cateel died. His heirs collected the P 2,000,000 proceeds of his life insurance policy. Mr. Cateel previously paid a total payment of P 500,000 in premiums. What is the exclusion in gross income? a. P 3,000,000 b. P 500,000 c. P 2,000,000 d. P 0 4. Mr. Malalag collected the P 5,000,000 fire insurance proceeds of his buildings which was destroyed by fire. The building had a tax basis of P 4,500,000 at the occurrence of the fire. What is the total exclusion in gross income? a. P 5,000,000 b. P 4,500,000 c. P 0 d. P 500,000 5. Mr. Kabacan insured his crops for a P 1,000,000 insurance cover against calamities. He paid P 100,000 insurance premium. What is the amount to be included in gross income? a. P 1,000,000 b. P 900,000 c. P 100,000 d. P 0 6. Mr. Dimataling was one of the passengers who were hurt in a bus accident. He received a total indemnity of P 800,000 from the insurer of the bus. Mr. Dimataling paid P 250,000 in hospital bills due to the accident. Compute the total amount to be excluded in gross income. a. P 0 b. P 250,000 c. P 550,000 d. P 800,000 7. At the age of 54, Mrs. Reyes was awarded with a retirement gratuity of P 2,000,000 for his 30 years of service. The employer’s retirement benefit plan was with an employee participation feature where Mrs. Reyes contributed a total premium of P 800,000 in the fund. Mrs Reyes also received P 500,000 benefit from the SSS. Compute the total exclusion in gross income. a. P 800,000 b. P 1,300,000 c. P 1,700,000

d. P 2,500,000 8. Mrs. Canadoni retired for the government after 30 years of service at the age of 55. He received a total retirement pay of P 1,800,000 plus P 400,000 GSIS benefits. How much will be excluded in gross income? a. P 0 b. P 400,000 c. P 1,800,000 d. P 2,200,000 9. The Professional Regulation Commission collected a total sum of P 100,000,000 from professional license fees. It also collected P 5,000,000 from rentals at government properties. What is the total exclusion in gross income? a. P 0 b. P 5,000,000 c. P 100,000,000 d. P 105,000,000 10. Mr. Alvarez had the following income during the year: Gross compensation income Including P 25,000 13th month pay P 325,000 Less: Tardy or absences ( 10,000) Net compensation income P 315,000 SSS Deductions P 12,000 PhilHealth deductions P 9,000 Pag ibig deductions P 10,000 Union dues P 5,000 Withholding tax P 40,000 P 239,000 Compute the total exclusions from gross income? a. P 36,000 b. P 61,000 c. P 66,000 d. 71,000 11. Mr. Henares received the following: Donated properties P 200,00 Income of donated property before donation P 50,000 Income of donated property after donation P 30,000 Inherited properties P 100,000 How much is taxable to Mr. Henares? a. P 380,000 b. 80,000 c. P 50,000 d. P 30,000 12. Mr. Tacurong has the following data during the year: Basic Salary P 400,000 Income tax withheld P 50,000 13TH month pay P 40,000 SSS P 2,000 PhilHealth p 1,800 Pag – Ibig P 1,700 Union dues P 500 Capital contribution P 2,000 Compute the total exemtions and exclusions from gross income: a. P 56,000

b. 46,000 c. 38,000 d. 36,000 13. Mang Antonio collected P 2,000,000 from the fire insurance company that insured his building which has a tax basis of P 1,800,000 when the fire occurred. During the same period, he also collected P 300,000 crop insurance proceeds pertaining to his crop destroyed by frost. The total item of gross income is a. P 2,300,000 b. P 500,000 c. P 300,000 d. P 200,000 14. The policy holder of a life insurance contract outlived his insurance policy. He was paid P 300,000 upon maturity of the policy. He paid P 250,000 total premium. What is the inclusion I gross income? a. P 300,000 b. P 250,000 c. P 50,000 d. P 0 15. Ms. Henson retired from her job after 25 years of service. She joined the company at the age of 23 and was promoted from a clerk to VP Finance. She was paid P 2,000,000 total retirement pay from the employes’s contributory pension plan. Out of the total proceeds, Ms Henson contributed P 600,000. This was Ms Henson’s first retirement from employment. How much is excluded in gross income? a. P 2,000,000 b. P 1,400,000 c. P 600,000 d. P 0 16. The following related to the compensation income of Ms. Lamitan in 2015.: Compensation P 2,400,000 Contribution to SSS, Philhealth, HDMF: -Mandatory contributions P 125,000 -Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 What is the total exclusion in gross income? a. P 125,000 b, P 230,000 c. P 275,000 d. P 465,000 17. The following income related to a proprietorship registered as BMBE: Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 18. Compute the total inclusion in gross income subject to final tax. a. P 0 b. P 9,000

c. P 6,800 d. P 15,800 19. KKB, a credit cooperative, had the following: Income from related activities P 400,000 Income from unrelated activities -Dividends from stocks P 20,000 -Income from time deposits P 18,000 -Rent income P 60,000 Compute the total exclusion in gross income. a. P 0 b. P 38,000 c. P 400,000 d. P 438,000 20. In the immediately preceding problem, compute the total inclusion in gross income subject to regular tax. a. P 460,000 b. P 98,000 c. P 60,000 d. P 38,000 21. A charity received the following: Contributions from the public P 1,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 2,200,000 b. P 1,900,000 c. P 1,400,000 d. P 1,300,000 22. Mr. Santiago purchased a life annuity For P 100,000 which will pay him P 10,000 a year. The life expectancy of Mr Santiago is 12 years. Which of the following will Mr. Santiago be able to exclude from his gross income? a. P 10,000 B. p 20,000 c. P100,000 d. P 120,000 23. A non profit organization received the following during 2015 Contributions from the public P 1,900,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 2,200,000 b. P 1,900,000 c. P 1,400,000 d. P 1,300,000 24. Mr. Ketchum collected the P 1,000,000 fire insurance proceeds of Mr. Brock which he bought from the latter for P 400,000. Before the death of Mr. Brock, Mr Ketchum paid P 300,000 for the premium. What is the exclusion in gross income? a. P 7,000,000 b. P 300,000

c. P 400,000 d. P 0 25. Team Rocket surrendered their life insurance policy and received a cash surrendered value of P 800,000 after contributing P 900,000 in annual premiums. Determine the total exclusion in gross income? a. P 800,000 b. P 900,000 c. P 100,000 d. P 0 28. Misty died last month. Her heirs collected the P 7,000,000 proceeds of her life insurance policy. Misty previously paid a total payment of P 1,500,000 in premiums. What is the exclusion in gross income? a. P 5,500,000 b. P 1, 500,000 c. P 7,000,000 d. 0 29. Kirito was one of the passengers who were hurt in a plane crash. He received a total indemnity of P 2,800,000 from the insurer of the plane. Kirito paid P 250,000 in hospital bills due to the accident. Compute the total amount to be excluded in gross income. a. P 0 b. P 250,000 c. P 550,000 d. P 2,800,000 30. Cherry Pie retired after 30 years of service as a Nurse at the age of 55. She received a total retirement pay of P 1,800,000 plus P 500,000 GSIS benefits. How much will be excluded in gross income? a. P 0 b. P 500,000 c. P 1,800,000 d. P 2,300,000 31. The Securities and Exchange Commission collected a total sum of P 200,000,000 from professional license fees. It also collected P 5,000,000 from rentals at government properties. What is the total exclusion in gross income? a. P 0 b. P 5,000,000 c. P 200,000,000 d. P 205,000,000 32. Mr. Rex had the following income during the year: SSS Deductions P 12,000 PhilHealth deductions P 9,000 Pag ibig deductions P 10,000 Union dues P 5,000 Withholding tax P 40,000 Compute the total exclusions from gross income? a. P 36,000 b. P 15,000 c. P 50,000 d. 76,000 33. Voldemort received the following data for the year 2016:

Income of donated property before donation P 50,000 Income of donated property after donation P 30,000 Inherited properties P 100,000 How much is taxable to Voldemort? a. P 180,000 b. 80,000 c. P 50,000 d. P 30,000 34. Pikachu has the following data: 13TH month pay P 40,000 SSS P 2,000 PhilHealth p 1,800 Pag – Ibig P 1,700 Union dues P 500 Compute the total exemtions and exclusions from gross income: a. P 40,000 b. 46,000 c. 42,500 d. 1,700 35. Gerry collected P 12,000,000 from the fire insurance company that insured his building which has a tax basis of P 11,800,000 when the fire occurred. During the same period, he also collected P 1,300,000 crop insurance proceeds pertaining to his crop destroyed by frost. The total item of gross income is a. P 12,300,000 b. P 1500,000 c. P 1,300,000 d. P 1,200,000 36. The Barangay Micro Business Enterprise has the following: SSS Deductions P 12,000 PhilHealth deductions P 9,000 Pag ibig deductions P 10,000 Union dues P 5,000 Withholding tax P 40,000

Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax?

a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details:

SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000 c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income?

a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization c. Yes, because the organizer is not an accredited sports organization d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following: Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000

What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000 Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail:

Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details: SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000

Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000 c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income? a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization c. Yes, because the organizer is not an accredited sports organization

d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following: Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000 Gross income from sales P 400,000

Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000

b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details: SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000 c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition

that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income? a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization c. Yes, because the organizer is not an accredited sports organization d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following: Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000

Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000 Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0

37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details: SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000

Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000 c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income? a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization

c. Yes, because the organizer is not an accredited sports organization d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following: Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000

Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000

Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details: SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000

c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income? a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization c. Yes, because the organizer is not an accredited sports organization d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following:

Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000 What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000 Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax?

a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details:

SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P 150,000 Creditable withholding taxes P 190,000 Employer’s share in SSS, PhilHealth, HDMF P 105,000 Compute the total exclusion in gross income subject to regular tax? a. P 200,000 b. 150, 000 c. 190,000 d. 105,000 39. Mr. Baracho won P 500,000 in a local chess competition that was sanctioned by a sports organization. Is the P 500,000 prize considered an item of gross income?

a. Yes, because all prizes are subject to income tax. b. No, because the chess is not an international organization c. Yes, because the organizer is not an accredited sports organization d. No, because the sports completion is a local competition 40. A church located in Tanay, Rizal received the following: Creditable withholding taxes P 190,000 Contributions from the public P 2,400,000 Income for the sale of merchandise P 500,000 Gain on sale of properties P 300,000

What is the total exclusion in gross income? a. P 800,000 b. P 1,900,00 c. P 2,400,000 d. P 300,000 Gross income from sales P 400,000 Dividend income – domestic P 9,000 Interest on deposits P 6,800 Compute the total exclusion in gross income subject to regular tax? a. P 415,000 b. P 400,000 c. P 15,800 d. P 0 37. Yvonne is an employee of Goldfish Company. Yvonne’s last paycheck shows the following detail: Unpaid salary in the last two months P 30,000 Current month salary P 15,000 Separation Pay P 100,000 Compute the total exclusion in gross income subject to regular tax? a. P 100,000 b. 30,000 c. 15,000 d. 45,000 38. Ron Weasley had the following details: SSS Mandatory contributions P 200,000 HDMF Voluntary contributions P...