BSA_Final Exam_Income Taxation

Jeremiah earned a compensation income of P120,000 and net income from business of P300,000. He also earned P8,000 prizes from a dancing competition and P45,000 royalties from his musical composition. Jeremiah has P150,000 personal expenses. Compute the taxable income.

• P473,000

• P465,000

• P428,000

• P420,000

Sir Josh with P250,000 personal exemption, had the following data in 2020:

Philippines transactions:

Gross income from sales – P4,000,000

Interest income on deposits – P40,000

Less: Deductions – P2,000,000

Transactions abroad:

Gross income from sales – P6,000,000

Interest income on dividends – P80,000

Less: Deductions – P3,600,000

Compute the taxable income if Sir Josh is a resident citizen.

• P4,480,000

• P4,520,000

• P4,270,000

• P4,230,000

Sir Josh with P250,000 personal exemption, had the following data in 2020:

Philippines transactions:

Gross income from sales – P4,000,000

Interest income on deposits – P40,000

Less: Deductions – P2,000,000

Transactions abroad:

Gross income from sales – P6,000,000

Interest income on dividends – P80,000

Less: Deductions – P3,600,000

Compute the taxable income if Sir Josh is a non-resident citizen.

• P1,750,000

• P1,790,000

• P4,270,000

• P4,150,000

Jyhan, Inc had the following income in the Philippines: Rent Income – P10,000,000; Business Expenses – P8,700,000; Royalties – P80,000 and Dividend from domestic – P50,000. Also generated this income from Korea: Rent income – P12,000,000; Business expenses – P9,800,000; Royalties – P200,000

Compute the taxable income if Jyhan Inc was a domestic Corporation.

• P3,500,000

• P3,700,000

• P1,380,000

• P1,300,000

Jyhan, Inc had the following income in the Philippines: Rent Income – P10,000,000; Business Expenses – P8,700,000; Royalties – P80,000 and Dividend from domestic – P50,000. Also generated this income from Korea: Rent income – P12,000,000; Business expenses – P9,800,000; Royalties – P200,000

Compute the income tax due, assuming Jyhan Inc was a domestic Corporation.

• P1,149,000

• P390,000

• P1,110,000

• P381,000

Jyhan, Inc had the following income in the Philippines: Rent Income – P10,000,000; Business Expenses – P8,700,000; Royalties – P80,000 and Dividend from domestic – P50,000. Also generated this income from Korea: Rent income – P12,000,000; Business expenses – P9,800,000; Royalties – P200,000

Compute the income tax due, assuming Jyhan Inc was a resident foreign Corporation.

• P390,000

• P1,110,000

• P1,149,000

• P381,000

Statement 1: If income item is subject to final tax, the said income is not subject to regular income tax.

Statement 2: Income item that is subject to capital gains tax is subject to regular income tax too.

• Only statement 1 is true

• Only statement 2 is true

• Both statements are true

• Both statements are false

Statement 1: All are subject to P250,000 personal exemptions including domestic corporations.

Statement 2: The deadline of the annual income tax return of corporations using the calendar year is similar to the deadline fixed for individual taxpayer.

• Only statement 1 is true

• Only statement 2 is true

• Both statements are true

• Both statements are false

Statement 1: Corporations with the same net income may not have the same tax due.

Statement 2: Individuals with the same net income may not have the same tax due.

• Only statement 1 is true

• Only statement 2 is true

• Both statements are true

• Both statements are false

The general rule in income taxation is

• Final income taxation

• Capital gains taxation

• Regular income taxation

• Fringe benefit taxation