1.

A concerned citizen furnished the BIR a statement detailing the improper tax practices of a
corporate taxpayer. The information was instrumental to the collection of P200,000 tax. How
much is the final tax ? *

2 points

P20,000

P18,000

P2,000

P0

2. A Russian programmer received P1,200,000 compensation income for his services

rendered in Makati and rental income of 100,000HKD from his properties in Hongkong.
Assuming 1HKD is equivalent to 6.5PHP, how much will be subject to Philippines income
tax? *

2 points

P1,850,000

P1,200,000

P650,000

3. Y received the following items of income during the taxable year: If Y is a resident citizen,
how much is the total income subject to regular income tax? *

2 points

P1,800,000

P1,740,000

P1,700,000

P1,200,000
4. Y received the following items of income during the taxable year: If Y is a resident citizen,
how much is the total income subject to Philippine income tax? *

2 points

P1,800,000

P1,740,000

P1,700,000

P1,200,000

5. Y received the following items of income during the taxable year: If Y is a resident alien,
how much is the total income subject to regular income tax? *

2 points

P1,800,000

P1,200,000

P1,260,000

1,000,000

6. How much is the gross income of Mr. Ponce? *

2 points
P37,500

P33,500

P31,500

P27,500

7. Mr. Cruz was an employee of ABC Trading. He was killed by a co-employee in one of their
regular “inuman” session. A case was filed by the heirs of Mr. Cruz against the co-employee.
The court decided in favor of the heirs and awarded them the following: *

2 points

P3,200,000

P2,400,000

P2,200,000

P1,900,000

8. Juan bought a certain piece of lot for P300,000. After 2 years, when its fair value was
P500,000, he sold it to his best friend for P320,000 in consideration of their friendship. For
taxation purposes, how much shall be the gross income subject to income tax? *

2 points

P500,000

P300,000
P200,000

P20,000

9. Mr. Arturo is in a quandary and approached you to help him identify which of the following
is considered as gross income for taxation purposes: *

2 points

P710,000

P660,000

P570,000

P320,000

10. How much of the following is gross income subject to income tax? *

2 points

P2,410,000

P2,210,000

P2,160,000

P1,710,000
P450,000

11. Mang Panday wants to determine the taxability of the foregoing. How much is the total
amount of passive income which is subject to final tax? *

2 points

P690,000

P540,000 500,000 + 30,000 + 10,000

P530,000

P500,000

12. Mang Panday wants to determine the taxability of the foregoing. How much is the total
amount of active income and other income subject to regular income tax? *

2 points
P1,680,000

P1,280,000 800,000 + 130k + 150k + 70k+ 90k+ 40k

P1,240,000

P1,150,000

13. How much is the gross income under cash basis? *

2 points

2019:P1,400,000; 2020: P1,720,000

2019: P1,370,000; 2020: P1,050,000

2019: P1,100,000; 2020: P1,050,000

2019: P900,000; 2020: P1,520,000

14. How much is the gross income under accrual basis? *

2 points

2019:P1,400,000; 2020: P1,200,000

2019: P1,400,000; 2020: P1,720,000

2019: P500,000; 2020: P720,000

2019: P800,000; 2020: P920,000

15. Bronx Corporation, a domestic corporation engaged in merchandising business, sold its
parking lot for P3,500,000 payable on installment. The lot was previously acquired for
P2,800,000. The buyer was required to make a down payment in the amount of P200,000. The
buyer has outstanding unpaid balance of P2,700,000 as of December 31 of the taxable year
2020. Compute the gross income in 2020 using the installment method. *

2 points

P160,000

P120,000

P40,000

Installment method does not apply

16. On January 2, 2021, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna.
The placement earns 10% annual interest. Quezon, Inc. pre-terminated the deposit on June 30,
2024. Compute the final tax to be withheld on pre-termination. *

2 points

P0

P10,000 1,000,000 x 10% x 6/12 x 20%

P17,500

P42,000
17. Rodrigo, a non-resident citizen, deposited his $2,000,000 savings in a 2-year time deposit
in Blue Bank, a depositary bank under the expanded foreign currency deposit system. The
deposit pays 8% annual interest. Compute the final tax to be withheld in dollars in the first
year. *

2 points

$0

$24,000

$64,000

$80,000

18. Mr. Siegmond, a resident citizen, received P100,000 dividend income from Vodka, Inc., a
domestic corporation. How much final tax must have been withheld by Vodka, Inc.? *

2 points

P10,000

P11,111 100,000/90% x 10%

P20,000

P25,000

19. Jericho, Inc. owns 20% of the stocks of Kidapawan Corporation. Jericho and Kidapawan
are both domestic corporations. Kidapawan declared P120,000 dividends in 2021. How much
dividend income after any applicable tax will Jericho receive? *

2 points

P24,000

P20,000

P19,000

P18,000

20. Jose Mari owns 20% of the capital and profits of a general professional partnership. The
partnership reported P500,000 profits in 2021. How much final tax will be withheld from Jose
Mari? *

2 points

P100,000
P50,000

P10,000

P0

21. Mr. Park owns a mining property in Prosperidad. He allowed a mining company to operate
under a condition that he will be paid 10% royalty on the gold production. The mining company
produced P8M worth of gold during the year. How much net royalties will be paid to Mr.
Park? *

2 points

P800,000

P640,000

P720,000

P160,000

22. Tiong Department Store conducted a sales promotion where customer purchases
exceeding P1,000 in one transaction shall be entitled to a ticket for a chance to win P500,000
raffle prize. Mr. Shing won the prize. How much will Tiong withhold from the grand prize? *

2 points

P200,000

P100,000 500,000 x 20%

P50,000

P0
23. On August 15, 2021, Ms. Mones sold a 500-square meter residential house and lot for
P3,000,000. The house was acquired in 2006 at P2,000,000. The Assessor's fair market values
of the house and lot, respectively, were P1,500,000 and P1,000,000. The zonal value of the lot
was P5,000 per square meter. What is the capital gains tax? *

2 points

P180,000

P120,000

P150,000

P240,000

24. Puerto Princesa Company sold its parking lot for P2,000,000. The lot has a zonal value of
P2,500,000 and appraisal value of P1,800,000. The capital gains tax on the sale of the lot is *

2 points

P0

P108,000

P120,000

P150,000

25. Mr. Antonio disposed his principal residence for P2M and immediately acquired a new one
for P1.8M. The old residence cost Mr. Antonio P1M and had a fair market value of P2.5M on
the date of sale. Compute the capital gains tax to be deposited in escrow. *

2 points

P0

P60,000

P120,000

P150,000