FINAL WITHHOLDING TAXES

Taxpayer P. Ramos received the following income during the year:

Income from profession (gross of 2% CWT) P 500,000
Cost of services 150,000
Rent, Philippines (gross of 5% CWT) 140,000
Depreciation 20,000
Rent, Hongkong 200,000
Interest, peso deposit, MBTC 2,000
Interest, US$ deposit, BDO 3,000
Prize (cash) won in a local contest 8,000
Winnings, won in a local lottery valued at 50,000
Lotto winning in US 10,000
Dividend, AB Corp., domestic 60,000
Dividend, YZ Corp., foreign 20,000
Royalty as author of tax book 300,000

1. If the taxpayer is a resident citizen, his taxable income is:

a. P470,000 c. P478,000 e. None of the above
b. P708,000 d. P538,000

2. The total creditable withholding taxes is

a. P17,000 c. P16,000 e. None of the above
b. P10,000 d. P 7,000

3. The income tax payable is

a. P470,000 c. P 90,000 e. None of the above
b. P 91,000 d. P107,000

4. If the taxpayer is a nonresident citizen or resident alien his taxable income is:
a. P470,000 c. P478,000 e. None of the above
b. P708,000 d. P538,000

5. In the preceding item, the income tax payable is

a. P 32,500 c. P478,000 e. None of the above
b. P 49,500 d. P538,000

6. The total income subject to final tax if the taxpayer is a resident citizen is
a. P470,000 c. P415,000 e. None of the above
b. P708,000 d. P538,000

7. The total final withholding taxes is

a. P470,000 c. P415,000 e. None of the above
b. P 50,450 d. P 46,850