Income Tax ( Tax Due)

Income Tax

(Tax Due)

Multiple Choice

Ash, a part-time accountant, operates a clothing store while offering accounting services to clients living in Metro Manila. In 2020, the gross sales of her clothing store amounted to P900,000 while her receipts from her accounting services amounted to P400,000. She signified in her 1^st QITR her intention to be taxed at the 8% income tax rate.

• a. 54,000

• b. 84,000

• c. 94,000

• d. 104,000

Multiple Choice

Hanabi resigned from Cutie Restaurants Inc. in the first week of January 2019 to concentrate in his bakery business. Her total compensation income in 2019 amounted to P120,000 inclusive of other benefits of P20,000. In 2019, bakery had gross sales of P1,100,000. COS of P300,000, P400,000 for OE and other non-operating income of P500,000.

What is her income tax due for 2019 if she avails of the 8% income tax rate option?

• A.100,000

• B. 120,000

• C. 128,000

• D.110,000

Multiple Choice

A non-profit hospital reported the following during a year

Related Activities

Gross income P 250,000

Less: Deduction 70,000

Net income P180,000

Unrelated Activities

Gross income P 350,000

Less: Deductions 50,000

Net income P 300,000

Total

Gross income P 600,000

Less: Deductions 120,000

Net income P 480,000

Compute for the tax amount.

• A. 144,000

• 120,000

• 130,000

• 121,000

Multiple Choice

A domestic corporation recorded the following income and expenses during the year:

Philippines

Gross income

P 1,600,000

Less: Business

expenses 1,200,000

Net income from operation P 400,000

Add: Interest from

deposit 40,000

Net income P440,000

Abroad

Gross income

P 1,400,000

Less: Business

expenses 400,000

Net income from operation P 1,000,000

Add: Interest from

deposit 35,000

Net income P1,035,000

Total

Gross income

P 3,000,000

Less: Business

expenses 1,600,000

Net income from operation P 1,400,000

Add: Interest from

deposit 75,000

Net income P1,475,000

Compute for the Regular corporate income tax due.

• 440,500

• 430,000

• 400,000

• 430,500

Multiple Choice

Purple Air, a resident foreign air carrier, reported the following summarized results of its Philippine operations during a quarter:

Inbound Flights

Gross Receipts P 7,000,000

Less:

Direct expenses 4,000,000

Outbound Flights

Gross Receipts P 9,000,000

Less:

Direct expenses 3,000,000

Total

Gross Receipts P 16,000,000

Less:

Direct expenses 7,000,000

Other common expenses 4,000,000

Net income P 5,000,000

Compute for the Income-tax of Purple Air

• A. P 205,000

• B. P 225,000

• C. P 215,000

• D. P 220,000

Multiple Choice

Evergreen Marine, a resident foreign shipping company, shows the following analysis of its gross receipts from passengers and cargoes during a month.

Incoming Flights

Fares billed in the Philipines P 9,000,000

Fares billed abroad 9,000,000

Total billings P 18,000,000

Value of fares on non-revenue Passengers P 700,000

Fares canceled and refunded 500,000

Outgoing Flights

Fares billed in the Philipines P 10,000,000

Fares billed abroad 2,000,000

Total billings P 12,000,000

Value of fares on non-revenue Passengers P 600,000

Fares canceled and refunded 800,000

Total

Fares billed in the Philipines P 19,000,000

Fares billed abroad 11,000,000

Total billings P 29,000,000

Value of fares on non-revenue Passengers P 1,000,000

Fares canceled and refunded 1,200,000

Compute for the following income tax due:

• A. P 280,000

• B. P 290,000

• C. P 288,000

• D. P 208,000

Multiple Choice

PhilOil, a domestic corporation wished to import a scientific deep sea drilling vessel but wanted to rent a unit to assess its capabilities first. PhilOil chartered a unit from Explorer Lab, Inc., a non-resident foreign lessor, at a total charter fee of P 2,000,000.Satisfied with the unit, PhilOil contracted Explorer Lab to provide training for its employees at a training fee of P 3,000,000 before buying a new one.

Compute the final tax to be withheld by PhilOil

• A. P 909,000

• B. P 990,000

• C. P 890,000

• D. P 1,109,000

Multiple Choice

Camero`s mining, a resident corporation, rented specialized mining equipment from abroad. The non-resident lessor billed Camero`s the following amounts in peso equivalents.

Equipment rental P12, 000,000

Set-up and training fee 2,000,000

Initial service and maintenance fee 600,000

Interest on rent in arrears 70,000

Total bill P14,670,000

Compute the total final tax withheld by Camero`s Mining.

• A. P 1,106,000

• B. P 1,216,000

• C. 1,206,000

• D. 1,116,000

COMPUTE THE INCOME TAX DUE OF 2021?

Multiple Choice

A corporation which started operation in 2016 reported the following:

2020

Total gross income 3,000,000

Less regular allowable deductions 1,600,000

Special allowable deductions 400,000

Taxable net income 1,000,000

2021

Total gross income 3,200,000

Less regular allowable deductions 2,800,000

Special allowable deductions 500,000

Taxable net income (100,000)

Determine the income tax due of 2020 and 2021?

• a. 500,000; 64,000

• b. 300,000; 65,000

• c. 300,000;64,000

• d. 500,000 ; 60,000

Multiple Choice

Pc Repair a business partnership providing computer repair services reported the following on its sixth year of operation:

Service fee net of 100,000 withholding tax 1,900,000

Salaries of staff, supplies, and other direct costs interest from bank deposits, net 1,000,000

Gain on sale of land classified as capital asset net 50,000

Gain on sale of used equipment 150,000

Administrative Business Expense 500,000

Estimated quarterly income tax payments 60,000

Determine the income tax due?

• a. 35,000

• b. 50,000

• c. 80,000

• d. 50,000

Multiple Choice

ABC Inc. became subject to MCIT in 2017. MCIT and RCIT data through the years were:

2017

MCIT 400

RCIT 0

Income Tax due 400

Excess MCIT 400

2018

MCIT 620

RCIT 500

Income tax due 620

Excess MCIT 120

2019

MCIT 200

RCIT 300

Income tax die 300

Excess MCIT -

how much the income payable as of 2019 ?

• 150

• 100

• 200

• 0