PROBLEM 1

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

Sales 400,000.00 700,000.00 1,900,000.00 900,000.00
Cost of sales 100,000.00 250,000.00 700,000.00 350,000.00
Gross Income 300,000.00 450,000.00 1,200,000.00 550,000.00
Operating Expenses 150,000.00 150,000.00 400,000.00 100,000.00
Net Taxable Income 150,000.00 300,000.00 800,000.00 450,000.00

Income Tax
First 800,000 130,000.00
In excess of 800,000 @30%
(900,000 x 30%) 270,000.00
400,000.00

Business Tax
3,900,000 x 12% 468,000.00

TOTAL TAX EXPENSE 868,000.00

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

Sales 400,000.00 700,000.00 - 900,000.00
Cost of sales 100,000.00 250,000.00 - 350,000.00
Gross Income 300,000.00 450,000.00 - 550,000.00
Operating Expenses 150,000.00 150,000.00 - 100,000.00
Net Taxable Income 150,000.00 300,000.00 - 450,000.00

Income tax
(2,000,000 - 250,000) x 8% 140,000.00

TOTAL INCOME TAX 140,000.00

PROBLEM 2

A) Compensation Income 1,200,000.00

Gross Sales 2,500,000.00
Cost of Sales -1,000,000.00
Operating Expenses -800,000.00
Taxable Net Income 1,900,000.00

Income Tax
First 800,000 130,000.00

In excess of 800,000 @30%

 (1,100,000 x 30%) 330,000.00

Income Tax Due for 2022 460,000.00

B) OPT
2,500,000 x 1% 25,000.00

Total Tax Due for 2022 485,000.00

C) Income Tax for Compensation Income

First 800,000 130,000.00

In excess of 800,000 @30%

(400,000 x 30%) 120,000.00

Income Tax 250,000.00

Income Tax for Business

Income
2,500,000 x 8% 200,000.00
Total Income Tax Due 450,000.00

PROBLEM 3

A) Sales 2,800,000.00 ü Regular/Basic Income Tax ü

Cost of Sales 1,125,000.00 ü Taxable Net Income
Business Expenses 650,000.00 ü
Gain on sale of shares of First 800,000
50,000.00 ü
foreign corporation
Interest income from peso
80,000.00 FWT
bank deposit In excess of 800,000 @ 30%
Interest income from bank (275,000 x 30%)
120,000.00 FWT
deposit under FCDS
Gain on sale of shares in a
domestic corporation (non- 150,000.00 CGT
listed) Basic Income Tax
Gain on sale of shares of Exempt from
domestic corporation (listed 200,000.00 Income Tax -
in the local stock exchange) OPT

Gain on sale of land in the

Philippines held as capital
asset with cost of 500,000.00 CGT
₱1,500,000.00 when the
zonal value is ₱1,200,000.00
 Total Income Tax
Basic Income Tax 212,500.00
FWT on interest income on peso bank deposit (80,000 x 20%) 16,000.00
FWT on interest income on FCDS (120,000 x 15%) 18,000.00
CGT on gain on sales of shares of stocks (non-listed)
(150,000 x 15%) 22,500.00
CGT on gain on sales of landin the Philippines
(2,000,000 x 6%) 120,000.00
Total Income Tax Expense 389,000.00

B) Basic Income Tax (8%)

Gross Sales + Other Income 2,850,000.00
Less: -250,000.00
Taxable Income 2,600,000.00
multiply by 8%
208,000.00

Total Income Tax

Basic Income Tax 208,000.00
FWT on interest income on peso bank deposit (80,000 x 20%) 16,000.00
FWT on interest income on FCDS (120,000 x 15%) 18,000.00
CGT on gain on sales of shares of stocks (non-listed)
(150,000 x 15%) 22,500.00
CGT on gain on sales of landin the Philippines
(2,000,000 x 6%) 120,000.00
Total Income Tax Expense 384,500.00
 TOTAL
3,900,000.00
1,400,000.00
2,500,000.00
800,000.00
1,700,000.00

TOTAL
2,000,000.00
700,000.00
1,300,000.00
400,000.00
900,000.00
1,075,000.00

130,000.00

82,500.00

212,500.00