Assignment No.

2 – Percentage Tax Computation

Instruction: Please write your solution and answer in a piece of paper. Kindly double rule
your final answer. We will check your answer on Thursday, October 8, 2020. After
checking your answer, take a picture and send it to my gmail:
jeremaeannceriaco@gmail.com with a subject of ASSIGNMENT – PERCENTAGE TAX
COMPUTATION.

1. Tin is the owner of a small grocery store with gross sales in any one year period that do
not exceed 3,000,000. She is not a VAT registered taxpayer. She submits the following
data for the month of January, 2008. Compute the percentage tax due. (3 points)
Merchandise Inventory, Dec 31, 2007 123,450
Gross sales 67,800
Purchases from VAT registered suppliers 156,980

2. Rustico owns a small eatery near a trimobile parking area. Its annual gross receipts range
from 400,000 to 450,000. In January, the gross receipts amounted to 27,500 while
purchases of goods subject to VAT is 6,000 and not subject to VAT, 13,000. Compute
the percentage due for the month if Rustico is not a VAT registered taxpayer. (3 points)

3. Malakas owns two passenger buses. Each bus has a seating capacity of 45 passengers.
The buses ply the route Naga City to Legaspi City, and vice versa. During the month, he
decided to stop the operation of one unit to undergo two weeks engine overhaul. Thus,
his total gross receipts during the month amounted to 110,000 only. Compute the
percentage tax of Malakas, if any. (3 points)

4. Sako Company is a holder of a franchise to operate five units of passenger buses (seating
capacity is 44 passengers) in the Bicol Region. It also owns a gas station which is used
exclusively to load its buses with diesel fuels, and a garage with service shop exclusively
to its own buses although in rare instances it is accepting repair jobs from outsiders.
During the month of December, it had the following gross receipts:
From the buses 280,000
From the gas station (in loading its own buses) 300,000
From the garage 12,000

How much is the common carrier’s tax payable? (3 points)

5. Radio Station DWLAA has an annual gross receipts ranging from 4,000,000 to
5,000,000. During the month, it had a gross receipts from advertisements of 330,000 (net
of tax), while the disbursements subject to VAT amounted to 224,000, inclusive of tax.
How much is the franchise tax payable (Percentage tax payable) of DWLAA? (3 points)

6. Too Big Company, a public service company, is a holder of a franchise to engage in the
business of supplying water to several towns and cities in Luzon. As recorded in its books
during the month, its total gross receipts from the sale of water amounted to 2,550,000,
while the receipts from rental of equipments and other services was 280,000. The
 operating expenses amounted to 2,000,000; 11% of which was paid to VAT registered
persons. How much is the percentage tax due of Too Big Company? (3 points)

7. Rose Tear operates a cockpit in Zamboanga City. Inside the cockpit is a restaurant which
she operates. The data during the month are as follows:
Gross receipts from the gates 390,000
Receipts from advertisements inside the cockpit arena 15,000
Gross receipts from restaurant:
Sale of food and softdrinks 21,000
Sale of liquor 33,000
Disbursements (subject to VAT) 24,200
Disbursements (not subject to VAT) 12,000

A. Compute the amusement tax due of Rose Tear. (3 points)

B. Suppose the restaurant is owned and operated by Mon, a non-VAT registered person.
How much is the business tax payable of Mon? (3 points)
C. Suppose the restaurant is operated by Mon, the percentage tax due on Rose Tear is?
(3 points)

8. Sogo Hotel offers the following services to its guests and from which revenues were
derived for the month, as follows:
Revenues Collections
Hotel rooms 1,250,000 984,000
Dining Hall:
Sale of foods and refreshments 940,000 860,000
Sale of wine, beer and liquors 780,000 620,000
Disco:
Admission fee 25,000 15,000
Sale of foods and drinks 250,000 115,000
Sale of wines , beer and liquor 650,000 540,000

Compute the amusement tax of Sogo Hotel. (4 points)

9. Tol Corporation, a closely held corporation decided to open itself to the public. The
initial offering of its shares had a selling price of 6,250,000 which is 22.5% of its total
outstanding shares after the listing in the local stock exchange. How much is the
percentage tax due of Tol Corporation? (3 points)

10. Superbank has the following income/loss for the months of March and April:

March April
Interest income maturity of less than 5 years 50,000 100,000
Rentals 50,000 50,000
Net trading gain/loss (10,000) 20,000

A. Compute the gross receipts tax payable for March. (3 points)

B. Compute the gross receipts tax payable for April. (3 points)