NAME: SCORE:

SECTION:

Problem 1: Empire Corporation started its operations in 2011 and has the following financial data for the three
consecutive years ending Dec. 31, 2013:

2011 2012
Gross Income, Philippines 720,000 635,000
Gross Income, Hong Kong 990,000 610,000
Gross Income, Thailand 810,000 890,000
Deductions, Philippines 555,000 495,000
Deductions, Hong Kong 770,000 485,000
Deductions, Thailand 630,000 707,000

1. Assume that the taxpayer is a domestic corporation, what is the taxable income?
2. What is the tax due?
3. Assume that the tax payer is Resident Foreign Corporation, what is the taxable income?
4. What is the tax due?
5. Assume that the taxpayer is a non – resident corporation, what is taxable income?
6. What is the tax due?

Problem 2: System Corporation, a domestic corporation, is into buy-and-sell business. The following results of
operations appear in its records for the quarter ending Sept. 30, 2013:

Gross Sales for the Quarter P490,000

Cost of Sales for the Quarter 246,400
Total Deductions Claimed for the Quarter 157,500
Gross Sales for the 2nd Quarter 315,000
Cost of Sales for the 2nd Quarter 159,075
Total Deductions Claimed for the 2nd Quarter 107,966

The company has a creditable tax withheld of P8,925. Tax payment for the second quarter is P14,388. System files
its third quarter income tax return on Dec. 3, 2013 instead of Nov. 29, the due date. The company is charged P7,500
compromise penalty.

7. Gross income this quarter

8. Taxable income this quarter
9. Gross income 2nd quarter:
10. Total taxable income to date
11. Tax due
12. Tax payable
13. Penalties
14. Total amount payable

Problem 3: EK Inc. is a trading company created under Philippine laws. For the quarter ending June 30, 2013, it has
the following results of operations.

Gross Sales for the Quarter P1400,000

Cost of Sales for the Quarter 552,000
Total Deductions Claimed for the Quarter 365,000
Gross Sales for the 3rd Quarter 735,000
Cost of Sales for the 3rd Quarter 355,520
Total Deductions Claimed for the 3rd Quarter 267,380
Tax Payment for the 3rd Quarter 29,678
Creditable Tax Withheld 18,950

The company fails to file its 2nd Quarter income tax return on the due date August 29, 2013. It files its return on Sept.
10, 2013. Compromise penalty is P14,560.
15. Gross income this quarter
16. Taxable income this quarter
17. Gross income 2nd quarter:
18. Total taxable income to date
19. Tax due
20. Tax payable
21. Penalties
22. Total amount payable

Problem 4: Empire Inc., a domestic corporation, started its operations in 2012. Its records show the following
cumulative balances for 2012.

1st 2nd 3rd Year

Quarter Quarter Quarter
Gross Income 1,920,000 3,840,000 5,760,000 7,440,000
Business Expenses 1,440,000 2,880,000 4,080,000 5,040,000
Income Tax Withheld 36,000 84,000 156,000 276,000

23. Taxable income for the 1st Quarter

24. Income tax for the 2nd Quarter
25. Income tax for the 3rd Quarter
26. Total Income tax due (or refundable) 1st Quarter
27. Total Income tax due (or refundable) 2nd Quarter
28. Total Income tax due (or refundable) 3rd Quarter
29. Total Income tax due (or refundable) at the end of the year

Problem 5: For taxable year 2012, the following cumulative balances appear in the records of Kingdom Corporation,
a domestic corporation. 2012 is its third year of operations. For 2011, Kingdom has an income tax refund of
P32,000.

1st 2nd 3rd Year

Quarter Quarter Quarter
Gross Income 2,560,000 5,120,000 7,680,000 9,920,000
Interest on Philippine Currency 16,000 32,000 48,000 64,000
Bank Deposit
Business Expense 1,920,000 3,840,000 5,440,000 6,720,000
Income Tax Withheld 48,000 112,000 208,000 368,000

30. Income tax for the 1st Quarter

31. Tax Due for the 1st Quarter
32. Income tax for the 2nd Quarter
33. Tax Due for the 2nd Quarter
34. Income tax for the 3rd Quarter
35. Tax Due for the 3rd Quarter
36. Income tax due at the end of the 1st Quarter
37. Income tax due at the end of the 2nd Quarter
38. Income tax due at the end of the 3rd Quarter
39. Income tax due at year-end
40. Final tax on Philippine currency bank deposit:

Problem 6: Line Corporation, a domestic corporation, is on its third year of operations in 2012. The following
cumulative data appear in its records:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Sales P220,000 P495,000 P825,000 P1,320,000
Dividends Income from a Resident Corp. 2,200 4,400 6,600 8,800
Dividends Income from a Domestic Corp. 11,000 11,000 22,000 22,000
Rent Income 8,800 17,600 26,400 35,200
Cost of Sales 55,000 132,000 203,500 330,000
City Taxes 5,500 11,000 16,500 22,000
 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Refund of City Taxes 13,200
Deficiency Income taxes, CY 2010 11,000 11,000
Business Expenses 132,000 286,000 451,000 803,000

41. Gross income for the first quarter:

42. tax taxable income for the first quarter
43. Allowable deductions for the second quarter
44. Income tax due at the end of the second quarter
45. Normal income tax for the third quarter
46. Normal tax taxable income for the year
47. Income tax due at the end of the year

Problem 7 Helen Corporation just completed its third year of operations. It has the following financial information for
the taxable year 2020, its third year:

Philippines Canada
Gross Income P5000,000.00 P2,500,000.00
Business Income 800,000.00 780,000.00
Royalties 35,000
Interest from Metrobank 47,000 150,000

48. Assume that taxpayer is a domestic corporation and of the total gross income, P3,000,000 was derived from
unrelated trade or business. Under Proprietary, non-profit educational Institutions and Hospital, how much is the
tax due? (The basis of Gross Income is only in the Philippines)
49. Assume that taxpayer is a domestic corporation and of the total gross income, P1,500,000 was derived from
unrelated trade or business. Under Proprietary, non-profit educational Institutions and Hospital, how much is the
tax due? (The basis of Gross Income is only in the Philippines)
50. Assume that the taxpayer is Resident Foreign Corporations, and has a business on international carrier, how
much is the tax due?
51. Assume that the taxpayer is Resident Foreign Corporations, and has a business related on Regional Operating
Head Quarters, how much is the tax due?
52. Assume that the taxpayer is Resident Foreign Corporations, and has a business related on Offshore Banking
Units, how much is the tax due?
53. Assume that the taxpayer is Resident Foreign Corporations, and has a business related on Branch Profit
Remittances, how much is the tax due?
54. Assume that the taxpayer is Non- Resident Foreign Corporations, and has a business related on Lessor of
Vessel Chartered, how much is the tax due?
55. Assume that the taxpayer is Non- Resident Foreign Corporations, and has a business related on Lessor of
Machinery and other Equipment, how much is the tax due?