(Solved) 1. Mr. Lolong, Supervisory Employee, Received The Following Income... - Course Hero

10/1/22, 12:50 AM [Solved] 1. Mr. Lolong, supervisory employee, received the following income...
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1. Mr. Lolong, supervisory employee, received the following income...

1. Mr. Lolong, supervisory employee, received the following income in 2015. Determine the total income to be reported by Mr. Lolong in gross income subject
to regular tax.
Image transcription text

섘 Gross compensation income,
before contributions to SSS,
Philhealth, P800,000 a... Show more
2. Mr. Lolong, supervisory employee, received the following income in 2015. Compute for the tax due.
TAX TABLE

섘 Income Tax Tables under TRAIN
Law (Part 1 -Applicable from Year
2018 to 2022) Source... Show more
3. Calixto, employed, derived the following income during the year. Compute the compensation income to be reported in the annual income tax return.

섘 Gross salaries P400,000 13th
month pay and other benefits
40,000 SSS, PhilHea... Show more
4. Calixto, employed, derived the following income during the year. Compute the total exempt income of Calixto.
5. Corazon resigned in 2015 after 12 years of service. She had the following income during the year. Compute the gross income subject to progressive
(regular) tax.
5. Iriga Corporation is engaged in the sales of goods. It reported the following summarized financial statements during the year. Compute the total taxable
income subject to regular income tax.
Sales P3,500,000 Less: Cost of
Sales 2,000,000 Gross profit
P1,500,000 Commis... Show more
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10/1/22, 12:50 AM [Solved] 1. Mr. Lolong, supervisory employee, received the following income... | Course Hero
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Question Answer & Explanation Related Questions Related Courses undefined undefined undefined undefined
6. Iriga Corporation is engaged in the sales of goods. It reported the following summarized financial statements during the year. Compute the tax due.
7. Andres leases a building to a client. During the year, he received the following remittance from the lessee. How much will be included in gross income
subject to regular tax?

섘 Rental, net 5% creditable
withholding tax 1900,000 Real
property tax of the le... Show more
8. Mr. Croki, a professional practitioner, received the following from his clients. How much will be included in Croki's gross income for regular income tax
purposes?

섘 Advances for future services to
be rendered P30,000 Collections
for past services ren... Show more
9. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. What is the net income?

섘 Sales P490,000 Gross
compensation income 120,000
Cost of sales 200,0... Show more
10. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the taxable compensation income.
11. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the taxable income.
12. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the tax due.
13. A 50-year-old employee retired during the year after 30 years of continuous service and received the following remunerations below. Compute the gross
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taxable compensation income. 숿
Question Answer & Explanation Related Questions ImageRelated Courses

transcription text undefined undefined undefined undefined
섘 Basic salary 360,000 Employee
share to SSS, PHIC, HDMF, and
union 24,000 dues... Show more
INCOME TAX TABLE
14. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total exempt de
minimis benefits?

섘 Annual compensation
income P540,000 13"
month pay 45,... Show more
15. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total non-taxable
compensation income?
16. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total taxable
17. The following relate to the compensation income of a private rank and file employee during the year as shown below. What should be the total amount of
taxes withheld during the year so that an adjustment is unnecessary?
18. Assume the following data of a taxpayer. How much is the net taxable income if the taxpayer is an individual, and he opted to use OSD in lieu of itemized
deductions?

섘 Gross Sales P1,000,000
Cost of Goods Sold 800,000
19. Assume the following data of a taxpayer. How much is the net taxable income if the taxpayer is a corporation, and opted to use OSD in lieu of itemized
deductions?
20. Assume that the taxpayer engaged in business incurring an interest expense of P400,000. In the same year, the business also earned P300,000 interest
income from time deposit in the bank. How much is the deductible interest expense?
Law Social Science Tax law CAE 222 섈 쉋
Answer & Explanation Solved by verified expert 숨 Rated

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Let's Start!
I am an Accountant and Tax Practitioner Based here in the Philippines, I will be answering your Assignment today, Let's do our best together in learning these
topics, Okay?
First a Brief Summary In Income Taxation:
Master Concept #1.) Income Subject to What Taxes?
ACTIVE INCOME Subject to Basic Tax
PASSIVE INCOME Subject to Final Tax
CAPITAL GAINS FROM SELLING CAPITAL REAL PROPERTIES Subject to Capital Gains Tax
AND DOMESTIC SECURITIES
Master Concept #2.) Summary of Passive Income Subject to Final Tax
Passive Income Tax Rate
1. Interest from currency deposits, trust funds and deposit substitutes 20%
2. Royalties (on books as well as literary & musical compositions) 10%
- In general 20%
3. Prizes (P10,000 or less ) Graduated

Income Tax
Rates
- Over P10,000 20%
4. Winnings (except from PCSO and Lotto amounting to P10,000 or less ) 20%
- From PCSO and Lotto amounting to P10,000 or less exempt
5. Interest Income from a Depository Bank under the Expanded Foreign Currency Deposit System 15%
6. Cash and/or Property Dividends received by an individual from a domestic corporation/ joint stock company/ insurance or mutual fund 10%
companies/ Regional Operating Headquarter of multinational companies
7. Share of an individual in the distributable net income after tax of a partnership (except GPPs)/ association, a joint account, a joint venture 10%
or consortium taxable as corporation of which he is a member or co-venture
8. Capital gains from sale, exchange or other disposition of real property located in the Philippines, classified as capital asset 6%
9. Net Capital gains from sale of shares of stock not traded in the stock exchange 15%
10. Interest Income from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, Exempt
investment management accounts and other investments evidenced by certificates in such form prescribed by the Bangko Sentral ng
Pilipinas (BSP)
Upon pre-termination before the fifth year, there should be imposed on the entire income from the proceeds of the long-term deposit based
on the remaining maturity thereof:
Holding Period
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
Master Concept #3.) TAXABILITY OF DEMINIMIS BENEFITS
GIVEN TO RANK AND FILE GIVEN TO MANAGERIAL EMPLOYEES
DEMINIMIS BENEFITS Subject to Basic Tax Subject To Fringe Benefits Tax

ABOVE THRESHOLD
Master Concept #4.) SUMMARY OF DEMINIMIS BENEFITS
DEMINIMIS BENEFITS THRESHOLD
Monetized Vacation Leave Credits Given to Private: 10 Days

Given to Government: All Exempt
MonetizedSick Leave Credits Given to Private: Subject to Basic Tax

Given to Government: All Exempt
Medical Cash Allowance P3,000 per Year
Medical Assistance P10,000 per Year
Uniform and Clothing allowance P6,000 per Year
Laundry Allowance P3,600 per Year
Rice Subsidy P24,00 per Year
Meal Allowance for OT and Night Shift 25% of daily Minimum Wage
Christmas Gifts and Anniversary Gifts Given to Private: P5,00 per Year
Given to Government: Subject to Basic Tax
Employee Achievement Award P10,000 per Year Tangible Property not cash
Productivity Incentives and Bonus under CBA Amount is P10,000 and Below: All Exempt
Amount is above P10,000: All Subject to Basic Tax
ANSWERS:
1. Mr. Lolong, supervisory employee, received the following income in 2015. Determine the total income to be reported by Mr. Lolong in gross income subject숿
to regular tax.
ANSWER: P926,000
Gross Compensation, before Mandatory Deductions P 800,000

Fringe Benefits (Subject to Fringe Benefits Tax) -
Gain from Redemption of Shares in a Mutual Fund 100,000
Commission Income 150,000
Gain on Sale of Stocks thru PSE (Subject to Stocks Transaction Tax) -
Gross Income P 1,050,000
Less: Mandatory Deductions (124,000)
Gross Income Subject to Regular Tax P 926,000
2. Mr. Lolong, a supervisory employee, received the following income in 2015. Compute for the tax due.
ANSWER: P167,800
First P800,000 P 800,000 P130,000

Excess of P800,000 126,000 x 30% 37,800
Taxable Income 926,000 Tax Due P167,800
3. Calixto, employed, derived the following income during the year. Compute the compensation income to be reported in the annual income tax return.
ANSWER: P380,0000
Gross Compensation, before Mandatory Deductions P 400,000

TH
13 Month Pay and Other Benefits (First P90,000 is Exempt) -
Less: Mandatory Deductions SSS, Pagibig, Philhealth (20,000)
Deduction for Loans Repayments (Not Allowed) -
compensation income to be reported in the annual income tax return. P 380,000
4. Calixto, employed, derived the following income during the year. Compute the total exempt income of Calixto.
ANSWER: P60,000
13TH Month Pay and Other Benefits (First P90,000 is Exempt) P 40,000
Mandatory Deductions SSS, Pagibig, Philhealth 20,000
Total exempt income of Calixto P 60,000
5. Corazon resigned in 2015 after 12 years of service. She had the following income during the year. Compute the gross income subject to progressive
(regular) tax.
ANSWER: P700,000
Gross Profit P 1,500,000

Add: Other Taxable Income
- Commission 200,000
- Interest Income (Subject to Final Tax) -
- Dividend Income (Subject to Final Tax) -
Total Gross Income P 1,700,000
Less: Admin and Selling Expense (1,000,000)
Total Taxable Income Subject to Regular Income Tax P 700,000
6. Iriga Corporation is engaged in the sales of goods. It reported the following summarized financial statements during the year. Compute the tax due.
ANSWER: P105,000
First P400,000 P 400,000 P 30,000

Excess of P400,000 300,000 x 25% 75,000
Taxable Income 700,000 Tax Due P105,000
7. Andres leases a building to a client. During the year, he received the following remittance from the lessee. How much will be included in gross income
subject to regular tax?

ANSWER: P2,050,000 숿
Rentals, Gross
Question of CWTx
Answer (P1,900,000/95%)
& Explanation Related Questions Related Courses undefined P 2,000,000
undefined undefined undefined
RPTx Assumed by Lessee 50,000
Gross Income Subject to Basic Tax P 2,050,000
8. Mr. Croki, a professional practitioner, received the following from his clients. How much will be included in Croki's gross income for regular income tax
purposes?
ANSWER: P 110,000
Collections for Services P 70,000

Reimbursement for Client 40,000
9. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. What is the net income?
ANSWER: P 290,000
Sales P 490,000
Less: Cost of Sales (200,000)
Gross Profit 290,000
Less: Admin and Selling Expense (120,000)
Net Income P 170,000
10. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the taxable compensation income.
ANSWER: P120,000
Gross Compensation P 120,000

Total Taxable Compensation Income P 120,000
11. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the taxable income.
ANSWER: P 290,000
Sales P 490,000
Less: Cost of Sales (200,000)
Gross Profit 290,000
Add: Other Taxable Income
Gross Compensation 120,000
410,000
Total Gross Income (120,000)
Less: Admin and Selling Expense P 290,000
Total Taxable Income Subject to Regular Income Tax
12. Mr. Buaya, with 14 dependent children, had the following data for his income tax return in 2018. Compute the tax due.
ANSWER: P 8,000
First P250,000 P 250,000 P -

Excess of P250,000 40,000 x 20% 8,000
Taxable Income 290,000 Tax Due P 8,000
13. A 50-year-old employee retired during the year after 30 years of continuous service and received the following remunerations below. Compute the gross
taxable compensation income.
ANSWER: P 378,000
Basic Salary P 360,000

Mandatory Deductions becomes Deductions -
Overtime Pay 18,000
Question
RetirementAnswer & Explanation
Pay (Exempt) Related Questions Related Courses undefined undefined
undefined
- undefined
Benefits from SSS (Exempt) -
th
13 Month Pay, (First P90,000 is Exempt) -
14. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total exempt de
minimis benefits?
ANSWER: P 56,600
INCOME EXEMPT DEMINIMIS EXEMPT 13TH MONTH PAY TAXABLE

And Other Benefits
Annual Compensation P 540,000
13th Month Pay P 45,000
Rice ALLOWANCE P 24,000 P 2,400
Commission from Employer P 12,000
Christmas Gift P 5,000 P 3,000
SSS, PHILHEALTH PAGIBIG P 21,000
Laundry Allowance P 3,600 P 2,400
Clothing Allowance P 4,000
Monetized Leave Credits

10 Vacation Leave P 10,000
8 Sick Leave P 8,000
Cost of Living Allowance P 13,000
Household Expenses P 24,000
Medical Assistance P 10,000 P 2,000
TOTAL P 56,600 P 21,000 P 107,800 P 589,000

LESS: P90K THRESHOLD (90,000) 17,800
TAXABLE INCOME P 606,800
15. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total non-taxable
ANSWER: P56,600 + 21,000 + 107,800 = P185,400

And Other Benefits

TOTAL P 56,600 P 21,000 P 107,800 P 589,000

TAXABLE INCOME
Question Answer & Explanation Questions
Related Related Courses undefined undefined undefined P 606,800
undefined
16. The following relate to the compensation income of a private rank and file employee during the year as shown below. How much is the total taxable
ANSWER: P 606,800

And Other Benefits

TOTAL P 56,600 P 21,000 P 107,800 P 589,000

TAXABLE INCOME P 606,800
17. The following relate to the compensation income of a private rank and file employee during the year as shown below. What should be the total amount of
taxes withheld during the year so that an adjustment is unnecessary?
ANSWER: P21,000 (MANDATORY DEDUCTIONS)
18. Assume the following data of a taxpayer. How much is the net taxable income if the taxpayer is an individual, and he opted to use OSD in lieu of itemized
deductions?
ANSWER: P 600,000
GROSS SALES P 1,000,000

Less: COST OF GOODS SOLD -
Gross Income 1,000,000
Less: OSD (40% x P1,000,000) (400,000)
Taxable Income 600,000
19. Assume the following data of a taxpayer. How much is the net taxable income if the taxpayer is a corporation, and opted to use OSD in lieu of itemized
deductions?
ANSWER: P 120,000
GROSS SALES P 1,000,000

Less: COST OF GOODS SOLD (800,000
Gross Income 200,000
Less: OSD (40% x P200,000) (80,000)
Taxable Income 120,000
20. Assume that the taxpayer engaged in business incurring an interest expense of P400,000. In the same year, the business also earned P300,000 interest
income from time deposit in the bank. How much is the deductible interest expense?
ANSWER: P 300,000
Interest Expense P 400,000

Less: Arbitrage Limit (P300,000 x 1/3) (100,000)
Deductible Interest Expense 300,000
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10/1/22, 12:50 AM [Solved] 1. Mr. Lolong, supervisory employee, received the following income...

Find study resources 숿

San Jose State University

Question Answer /& CAE

Question 숤 Answered step-by-step

1. Mr. Lolong, supervisory employee, received the following income...

Image transcription text

before contributions to SSS,

Philhealth, P800,000 a... Show more

Image transcription text

Law (Part 1 -Applicable from Year

2018 to 2022) Source... Show more

Image transcription text

month pay and other benefits

40,000 SSS, PhilHea... Show more

Image transcription text

Sales P3,500,000 Less: Cost of

Sales 2,000,000 Gross profit

P1,500,000 Commis... Show more

Find study resources 섘 숿

Image transcription text

withholding tax 1900,000 Real

property tax of the le... Show more

Image transcription text

be rendered P30,000 Collections

for past services ren... Show more

Image transcription text

compensation income 120,000

Cost of sales 200,0... Show more

Question Answer & Explanation Related Questions ImageRelated Courses

share to SSS, PHIC, HDMF, and

union 24,000 dues... Show more

INCOME TAX TABLE

Image transcription text

income P540,000 13"

month pay 45,... Show more

Find study resources 숿

Image transcription text

Cost of Goods Sold 800,000

Law Social Science Tax law CAE 222 섈 쉋

Answer & Explanation Solved by verified expert 숨 Rated

Hello, are you doing today? I am praying everything is Good :),

"One who is afraid of asking is ashamed of learning." ~ Danish Proverbs

First a Brief Summary In Income Taxation:

Master Concept #1.) Income Subject to What Taxes?

ACTIVE INCOME Subject to Basic Tax

PASSIVE INCOME Subject to Final Tax

Master Concept #2.) Summary of Passive Income Subject to Final Tax

Passive Income Tax Rate

3. Prizes (P10,000 or less ) Graduated

- Over P10,000 20%

- From PCSO and Lotto amounting to P10,000 or less exempt

- Four (4) years to less than five (5) years 5%

- Three (3) years to less than four (4) years 12%

- Less than three (3) years 20%

Master Concept #3.) TAXABILITY OF DEMINIMIS BENEFITS

GIVEN TO RANK AND FILE GIVEN TO MANAGERIAL EMPLOYEES

DEMINIMIS BENEFITS Subject to Basic Tax Subject To Fringe Benefits Tax

Master Concept #4.) SUMMARY OF DEMINIMIS BENEFITS

DEMINIMIS BENEFITS THRESHOLD

Monetized Vacation Leave Credits Given to Private: 10 Days

MonetizedSick Leave Credits Given to Private: Subject to Basic Tax

Medical Cash Allowance P3,000 per Year