ATHENA LEILA S.

BORDAN

1. C
2. A
3. D
4. D
5. A
6. D
7. D
8. C
9. A
10.C
11.C
12.D
13.B
14.B
Solution: Net Income per book P 220,000
Less dividend income (50,000)
Interest Income (5,000)
Add provision for bad debts 35,000
Taxable Income P200,000
15.C
Solution: Gross Income P895,250
Less: dividend from domestic corporation (42,000)
Dividend received from resident foreign corp (5,000)
Proceeds from sale of company sales (4,750)
Net Income P 828,000

Add : bad debts recovered 15,000

Income before tax 843,000
Income tax(30%) 251,900
Less: tax credit for 2010 (15,000)
Income tax payable 236,900
Add: Surcharge (2%) 4, 738
 Interest (20% of P236,000) 47,380
Total income tax payable 288,018
Less: Tax paid in 2010 (50,000)
Income Tax Payable in 2022 P 35,763.50
16.A
17.D
Solution: Un Adjacent taxable income P520,240
Less: Cash Dividend (122,8000)
Stock dividend (73,500)
Property dividend (27.000)
Gambling Winnings (23,100)
Donation Received (16,000)
Gain on sale of capital asset (15 months)
(800,000x50%) (4,000)
Gain on sale of his vacant lot (120,000)
Total P133,840
Add: surcharge on late filling 12,000
Interest on personal loan 24,000
Gambling losses 32,000
Personal and living expenses 50,000
Loss on sale of capitol assets 5,000
Adjustable Taxable Income P 256,840
18.D
19.C
20.A
21.D
22.A
23.A
24.D
25.D
26.C