CUP 4: DIFFICULT ROUND

Doc Kuma Rawa agreed to perform liposuction surgery for Miss Vale Yena at his clinic for a P50,000 fee, inclusive of excise tax and VAT. Compute the amount of excise tax and VAT.

• P2,125.85; P5,357.14

• P2,232.14; P5,625

• P2,232.14; P4,464.28

• P2,125.85; P4,464.28

A non-VAT corporate taxpayer registered as a BMBE had the following during the first quarter of 2022: Registered activities Sales P 400,000 Cost of sales 50,000 Gross income P 350,000 Expenses 150,000 Net income P 200,000. Compute the income tax due of the BMBE and its percentage tax.

• P125,000; P 5,000

• P75,000: P 5,000

• P60,000; P 9,000

• P0; P 0

Baguio Meds is a non-profit hospital. The following shows its gross receipts and business expenses in 2017: Total Gross receipts P 4,000,000 Direct expenses 3,075,000 Common expenses 1,125,000 Net income P 1,800,000. Compute the income tax due of Baguio Meds.

• P180,000

• P455,000

• P540,000

• P600,000

Mr. Calabarzon reported the following data in 2020: Sales P 1,000,000 Cost of sales 600,000 Gain on sale of equipment 60,000 Interest received on bond investments 50,000 Interest income from deposits 40,000 Royalty income 30,000 Deductible expenses 300,000 Non-deductible expenses 200,000. Compute the optional standard deduction.

• P440,000

• P424,000

• P400,000

• P160,000

In 2018, ABC Corp. hired Ms. R. Escala as sales manager for cosmetics. In accordance with her conditions for employment, she was given the following compensation and fringe benefits: Salary P200,000/month Three handsome houseboys as maids P8,000 per maid/month A macho personal driver P10,000/month Home owner’s association dues P1,200/year. The fringe benefit tax due is

• P108,424

• P192,565

• P201,452

• P220,338

Jeff, a resident citizen, disclosed the following income before the applicable income taxes in 2019: Dividends from domestic corporation P 200,000 Dividends from a resident corporation (85% of income in the 3 prior years is from the Philippines) 100,000 Rent income 200,000 Dollar interest income from Bank of Tokyo, Japan (peso equivalent) 120,000 Dollar interest income under the Expanded Foreign Currency Deposit System 80,000 Compensation, net of 15% withholding tax, P2,000 SSS, P1,500 PhilHealth, P1,000 Pag-Ibig and P500 union dues 170,000 Professional fees, net of 10% withholding tax 90,000. Compute the total reportable income in 2019.

• P520,000

• P585,000

• P690,000

• P720,000

Mr. Elmo sold his real properties to the government for P3,000,000. The same property was previously acquired at P2,000,000 and had a zonal value of P3,200,000 at the date of sale. Compute the documentary stamp tax.

• P0

• P30,000

• P45,000

• P48,000

John, a VAT-registered realtor, disposed of the following properties in the first quarter of 2022: Properties Selling price Fair value Terms Property held for use P 2,240,000 P 2,100,000 30% downpayment Property not used in business 1,400,000 1,500,000 Cash Property held for sale - 1,200,000 Donation. Compute the output VAT and capital gains tax.

• P240,000; P 90,000

• P384,000; P 90,000

• P396,000; P 0

• P412,800; P 0

A pharmacy reported the following sales at gross invoice prices: Goods sold: To senior citizens/PWDs To other persons Medicine for diabetes & hypertension P 500,000 P 1,500,000 Ordinary medicine and medical supplies 1,000,000 4,500,000 Other Merchandise 400,000 1,200,000. Compute the senior citizen’s discount and the output VAT.

• P300,000 ; P732,000

• P267,857 ; P653,571

• P380,000 ; P732,000

• P339,286 ; P670,714

ABC incorporated has 10,000 10% P100-par value participating preferred stocks and 1,000,000 no-par value common stocks with a stated value of P10/share. The incorporators subscribed for all of the preferred shares and 500,000 of the common shares for P12/share. Compute the documentary stamp tax.

• P70,000

• P60,000

• P52,500

• P45,000