Prob. 1: ABC, is a domestic corporation engaged in merchandising business.

For the calendar year 2022, it

had a net income per books of P500,000, after considering, among others, the
following:
a. Dividend received from a domestic corporation P30,000
b. Provision for doubtful accounts 10,000
c. Dividend received from a foreign corporation 20,000
(<50% gross income earned w/in, <20% ownership)
d. Portion of P150,000 advance rental already earned 100,000
e. Recovery of receivables previously written off (included as part of net income above):
Allowed by the BIR as deduction 10,000
Disallowed by the BIR as deduction 30,000
f. Refund of taxes (included as part of net income above):
Allowed by the BIR as deduction 25,000
Disallowed by the BIR as deduction 15,000
g. Bank interest income:
Philippine Bank 80,000
USA Bank 100,000
A. The taxable income subject to Regular Income Tax?
B. The exempt income?
C. The taxable income subject to Final Income Tax?

Prob 2:
2019 2020 2021
Gross income P2,000,000 P3,000,000 P4,000,000
Other Income:
Capital gain from sale of
Commercial land 400,000 500,000
Interest income from
bank deposit 80,000 96,000
Capital gain from sale of
Domestic stocks – not listed 60,000 70,000
Allowable deduction 1,940,000 3,100,000 3,500,000
A. The taxable income subject to Regular Income Tax?
B. The taxable income subject to Final Income Tax?
C. The taxable income subject to Capital Gain Tax?
Prob 3: a. A married resident citizen supports three (3) qualified dependent children and a brother-in-law who
is a PWD, unmarried and not gainfully employed. He has the following data on income and expenses for the
year 2018:
Salary, Philippines P 560,000
Gross business income, Philippines (gross sales, P1,700,000) 500,000
Business expenses, Philippines 180,000
Gross business income, USA (gross sales, P1,500,000) 900,000
Business expenses, USA 300,000
Interest income from bank deposit, Philippines 50,000
Interest income from bank deposit, USA 70,000
Interest income from domestic depository bank under EFCDS 80,000
Interest income from a debt instrument not within the coverage of deposit substitute, Philippines, gross of
20% creditable withholding tax (issue price is P300,000) 50,000
Interest income from a debt instrument within the coverage of a deposit substitute, Philippines (issue price
P500,000) 60,000
Royalty on book published in the Philippines 100,000
Prize in a contest he joined in the Philippines 5,000
Philippine Charity Sweepstakes winnings 1,000,000
Gain from sale of shares of stock not traded through
the local stock exchange (P200,000 par value) 150,000
Dividend received from a domestic corporation 40,000
Tax payments, first three (3) quarters 100,000
A. The taxable income subject to Regular Income Tax?
B. The taxable income subject to Final Income Tax?
C. The taxable income subject to Capital Gain Tax?