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EXAM-BSA-001
PRELIMINARY EXAMINATION Revision No.:
BS EN ISO 9001: 2015 Certified 0
HECTOR E. JULIANO BENJAMIN FRANKLIN A. SABUG DR. LEAH DIGO
Professor /Instructor
Document Title:
BME Dean VP for Academic Affairs
Effective Date:
1st Semester,
SY 2020-2021
COLLEGE OF BUSINESS MANAGEMENT EDUCATION
Page
BACHELOR OF SCIENCE IN ACCOUNTANCY
1 of 2

I. Modified True or False. If the statement is false, change the underline

word/group of words to make the statement true.

1. Honoraria received by a minimum wage earner are not taxable following

the tax exempt incomes of MWE.

2. A resident alien is taxable on income derived from sources within and

without the Philippines.

3. Forced contribution is an essential characteristic of tax that explains why it

is the duty and obligation of every citizen to pay taxes.

4. A non-resident alien is taxed on his income derived from sources within the
Philippines in contrast to non-resident citizen who is taxed from all his
income derived within and without the Philippines.

5. Passive income increases the total income that must be reported by an

individual when filing his annual tax return.

6. An overseas Filipino worker is taxable from his income derived from Milan,
Italy.

7. The amount of additional benefits other than the non-taxable benefits of

P90,000 is deductible income of both the minimum wage earner and a
regular taxpayer.

8. The amount of income taxable to a MWE covers income received of the

statutory minimum wage and other income considered as tax exempt.

9. Minimum wage earners may enjoy tax exempt status but they may be free
to other appropriate taxes.

10. Income tax computed at year end for an employee refers to a different
income received on a monthly basis.

11. A minimum wage earner who received income during the year other than
the income exempting them to pay tax shall qualify them to become a
regular taxpayer.

ISO 9001:2015 QMS Document

This is a controlled document and is subject to revision control requirements. User should verify latest revision.
File Name: EXAMINCOME TAX ACCOUNTING

12. If the annual gross income of a regular taxpayer and a minimum wage
earner are the same and the amount of their deductions are also the same,
 Document Type: Document No:
EXAM-BSA-001
PRELIMINARY EXAMINATION Revision No.:
BS EN ISO 9001: 2015 Certified 0
Document Title: Effective Date:
1st Semester,
SY 2020-2021
COLLEGE OF BUSINESS MANAGEMENT EDUCATION BACHELOR
Page
OF SCIENCE IN ACCOUNTANCY
2 of 2

the taxable income of the minimum wage earner is the same amount of the
regular taxpayer.

13. The amount of tax due from an individual taxpayer depends on the tax rate
used only.

14. In the equation, Total Income Tax Due – Total Income Tax Withheld=Tax
Payable or Tax Refund. Tax Due means the amount of tax withheld from
income of the employee.

15. If Lebron and Kawhi are resident alien and non-resident alien respectively
receiving income from the Philippines, the income derived by Kawhi from
the Philippines are taxable from his country of origin assuming the
Philippine income tax law is similarly applied in Canada.

II. Mr. Ack Countant has been employed as a financial consultant of Profitbank for the last
couple of years now. In 2019, his annual compensation is P3,500,000 which is inclusive
of his 13th month and other benefits in the amount of P470,000, but net of the mandatory
contributions to PagIBIG, SSS and Philhealth.

Mr. Countant has other income consisting of the following items.

AMOUNT
Interest from bank deposits P37,500
Sale of lot in Nueva Ecija:
Selling price P1,500,000
Acquisition cost 200,000

REQUIRED: Compute for the amount of taxes due from Mr. Ack Countant.

ISO 9001:2015 QMS Document

This is a controlled document and is subject to revision control requirements. User should verify latest revision.
File Name: EXAMINCOME TAX ACCOUNTING