TAXATION 1 EXERCISE #1

August 8, 2018

A. In 2015, Jam, legally separated from wife, had gross compensation income of
P450,000; Mich (wife), on the other hand, had P650,000. Jam was granted by the court
custody of one of their 6 children while Mich, their 5 children.

1. The basic personal exemption of Jam is _________________

2. The additional exemption of Jam is _________________
3. His net compensation income is _________________
4. The basic personal exemption of Mich is _________________
5. The additional exemption of Mich is _________________
6. Her net compensation income is _________________
7. Jam’s tax due is _________________
8. Mich’s tax due is _________________

B. Mr. Vic S., married, had the following data for the taxable year 2010:

Gross income, Philippines P420,000

Gross income, Afghanistan 305,000
Expenses, Philippines 285,000
Expenses, Afghanistan 229,000

1. If the taxpayer is a Filipino citizen who stayed outside the Philippines for 182 days
during the taxable year, his taxable income is _____________________

2. If the taxpayer is a citizen of the Philippines who stays abroad for 183 days during the
taxable year, the taxable income is _________________

3. If the taxpayer is an Afghan citizen who stayed in the Philippines for 180 days during
the taxable year, the taxable income is ________________________

4. If the taxpayer is an Afghan citizen who stayed in the Philippines for less than 180
days, the taxable income is __________________

C. Willie R., Filipino, is married with 12 children, all minors, by his Filipino wife, full-time
housewife. He prefers the optional standard deduction for the taxable year 2014. Below
are additional data:

Gross business income P 1,800,000

Gross compensation income 700,000
Itemized deduction 600,000

1. Willie’s total gross income is _______________________

2. Deductions pertaining to business _______________________
3. Total personal exemption _______________________
4. Total taxable income is _______________________
5. Tax due is _______________________
 TAXATION 1 EXERCISE #2
August 10, 2018

Compute the income tax due of the following items using the old Tax Law and TRAIN
Law:

1. A husband with P100,000 compensation income for the year with no children.
2. A widowed wife with P250,000 compensation income with 3 qualified
dependents.
3. A net taxable income of P490,000.
4. A single mom with P75,000 compensation income whose one and only child
got married during the year.
5. A net taxable income of P750,000.
6. A single taxpayer with P150,000 compensation income during the taxable
year who supports his mother, father, and one brother.
7. A senior citizen with P200,000 gross compensation income for the year.
8. A net taxable income of P9,000.
9. A net taxable income of P70,000.
10. Mr. and Mrs. Jones, both Filipinos and taxpayers, legally separated, with one
dependent child aged 5 years old. Mrs. Jones earned compensation income
of P240,000 for the year, while Mr. Jones earned P250,000. Compute the tax
due of the spouses separately.