1.

Lenra, received the following income in 2011

Business Income, PH 300,000

Business Income, US 250,000
Expenses, PH ……………………………………………… 200,000
Expenses, US ……………………………………………….125,000
Interest on deposit with Metrobank ……………3,000
Interest on Deposit in US ($1=40) $500
Cash Prize won in local contest …………………..6,000
Cash Prize won in contest in U.S………………….10,000
Winnings In LoSo ………………………………………20,000
Winnings in LoSo in US ……………………………..50,000
Dividends from SMC, A domesUc company …25,0000

The taxable income is Lenra is a resident ciUzen, single is ----

a. 261,000
b. 334,000
c. 291,000
d. 306,000

2. Watchout CorporaUon which commenced business operaUons in 2000 has a pross incorne of P832,000
and allowable deducUons of PB10 000 in 2011 Its income tax payable during the year is –
a P 7,700 C. P 6,680
b 7,040 d 12,640
3. Rolly sold 1,500 shares of stods of Achievers CorporaUon. The par value per share was P85 but were
acquired by him at P90. On the date of sale, the shares had a sellina prics of P 120 per share. The
capital gains tax on the sale if the shares are not listed and traded in the Philippine Stock Exchange
a. 2,250
b. 2,650
c. 14,000
d. 11,375

4. Sarah, married with three (3) qualified dependent children, a regular employee of Confederate inc
receives on July 6, 2011 P30,000 as regular monthly salary and hall of his 13 month pay amounUng to
P15,000 plus other benefits such as rice allowance for July of P2,000, incenUve pay , P20,000, hazard
pay of P1,000, overUme pay of P4,000 and night shib differenUal of pP2,000.

Compute the income subject to withholding tax in July.

A. P 57.000 B.
B. 30,000
C. P 45 500
D. 72.500
 5. Mayaman Company owns a fleet of motor vehides. In 2011, one of the cars which was acquired at a
cost of P400,000 was allowed as servica vehicle by one of its offidals. During the year, its book value
amounted to P375.000.

How much was the fringe benefit tax due thereon?

A. 98, 089
B. 18, 873
C. P 17,767
D. 21, 538
Value of the benefit (400,000/5) 80,000
X taxable porUon 50%
Monetary value 40,000
Divide by 65%
Gross Up rate monetary value 61,538
Rate of tax 35%
Fringe benefit tax 21,538

6.
2020 2021
SALES 1,700,000 2,300,000
COST OF SALES 1,050,000 1,425,000
OPERATING EXPENSES 615,00 480,000

The income tax payable in 2020 is

a. 13,000
b. 12,250
c. 35,000
d. 10,500
 7. Janet sold her principal residence for P5,000,000 when its fair market value was P6,000,000. The house
was' purchased five (5) years ago for P3,000,000. Out of the proceeds of P5,000,000, Janet uUlized the
P4,000,000 for the purchase of a new residenUal house.

The capital gains tax on the sale is

a. P 380 000
b. 300.000
c. P 72.000
d. 80,000

8.
2020 2021 2022
GROSS SALES 3,300,000 2,340,000 825,000
COST OF SALES 2,400,000 1,070,000 380,000
DIVIDEND – RFC 140,000 ----- 32,000
INTEREST INCOME ON NOTES.P 28,000 16,400 -----
CAPITAL GAIN --- 13,000 18,500
CAPITAL LOSS 20,000 ---- 22,000
DEDUCTIONS 1,475,000 1,025,000 459,000

The taxable income / operaUng loss in 2009 is

a. (575,000)
b. (407,000)
c. (427,000)
d. 1,068,000
 9. Xtra CorporaUon fumished and granted the use of its condominium unit to Its ExecuUve Vice-President.
The fair market value of the property is P4,800,000 while the acquisiUon cost is P3,000,000.

The monthly fringe benefit tax due thereon is - e

a. P 2.041.18
b. 4.705.88
c. P 88,235.00
d. 58,823.53

10. A concerned government employee furnished the BIR a statement detailing the discover of smuggled
good.. The informaUon was instrumental to the collecUon of P500,000 tax.

How much informer's tax reward aber tax shall be released to the informant?
a. PO
b. P45,000
c. P40,000
d. P50,00

AMOUNT 500,000
X 10% 10%
INFORMERS REWARD 50,000
LESS: 10% FINAL TAX 5,000
NET REWARDS 45,000

Note: This is in accordance with SecUon 282 - Informer's Reward to Persons Instrumental in the Discovery of
ViolaUons of the NaUonal Internal Revenue Code and in the Discovery and Seizure of Smuggled Goods, under
the said provision, an informer shall be rewarded in a sum equivalent to 10% of the revenues, surcharges or
fees recovered and/or fine or penalty imposed and collected or P1,000,000 per case, whichever is lower. The
reward is subject to 10% final withholding tax.