Midterm Exam Tax 1 Income Taxation SUN 4PM-7PM PDF

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Download Midterm Exam Tax 1 Income Taxation SUN 4PM-7PM PDF

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Problem 1 Records reveal the following earnings of Mr. Sabot, a resident Filipino citizen, during a taxable year: Salary as university professor, net of P20,000 WTW 240,000 Income derived from audit services, net of 10% creditable tax 135,000 Rent income, net of 5% CWT 114,000 Interest income, net of 29% final tax (Metrobank) 8,000 Dividend income, net of 10% final tax (Jollibee) 4,500 Gain from sale of personal car 3,000 Gain from sale of shares of stock – outside stock exchange, net 5% final tax 2,850 How much income is classified as compensation income? P410,000 P375,000 P260,000 P240,000 How much is the total amount of income classified as income from professional and business? P273,000 P270,000 P260,000 P120,000 How much gross income is classified as passive income? P21,000 P15,350 P15,000 P12,500 How much income is classified as capital gains? P15,000 P12,500 P10,500 P6,000 Problem 2 Kiko reports the following earnings during the year: Professional fee, net of 100% withholding tax Salary, net of P60,000 withholding tax on wages Capital gains-shares of stock, net of capital gains tax of 5% on 1st 100,000 gain,10% on gain in excess of P100,000 Winnings, net of 20% passive income tax Prizes

450,000 300,000

149,000 40,000 8,000

How much is the amounts of gross earnings subject to normal tax? P868,000 P886,000 P860,000 P810,000 How much is the amounts of gross earnings subject to final tax? P210,000 P218,000 P212,000 P207,000 Problem 3 The real property classified as capital asset with cost of P400,000 was sold by installments in 4 years including the year of sale with the following terms: Down payments: Cash (down payment) Fair value of property received as part of non-cash down payment Mortgage assumed by the buyer Installment payment: First year (end of year sale) Second year Third year Fourth year How much is the selling price of the installment sales? P2,000,000 P1,800,000 P1,600,000 P1,300,000 How much is the contract Price? P2,000,000 P1,800,000 P1,600,000 P1,200,000 How much is the initial payments P150,000 P200,000 P250,000 P300,000

50,000 100,000 450,000 100,000 200,000 300,000 400,000...