Comprehensive problem

Problem I
The book of A showed the following financial data for the year ended
December 31, 2023.
Sales for the first half of 2023 P 2, 500,000.00
Sales for the second half of 2023 3,150,000.00
Cost of Sales for the year 2023 4,065,000.00
Operating expenses for the year 2023 were as
follows:
Light and water 56,517.00
Salaries and wages 150,000.00
Rent expense paid for office space of A 150,000.00
Representation expense 35,000.00
Permit, Licenses, and taxes paid during the year 55,500.00
in relation to the operation of the business of A
(Included in this account the P30,000.00 capital
gains tax paid by A as a result of the sale of his
vacation house in Siruma)
Depreciation Expense (included in this account is 20,000.00
the depreciation expense of the motor vehicle of A
utilized for personal use of A amounting to
5,000.00)
Charitable Contributions 65,000.00
Tax paid for the first 3 quarters of 2023 16,173.50
Tax credit based on 2307 during the year 30,465.00
MCIT 1.5%
RCIT 30%

Required:
1. Suppose A is an individual taxpayer in the Philippines engaged in the
sale of goods, compute for the following: (Method of deduction is
itemized deduction)
a. Taxable net income
b. Tax Due
c. Income tax payable

2. Suppose A is an individual taxpayer in the Philippines engaged in the

sale of goods, compute for the following: (Method of deduction is
optional standard deduction)
a. Taxable income
b. Tax Due
c. Income tax payable
3. Suppose A is an individual taxpayer in the Philippines engaged in the
sale of services, compute for the following: (Method of deduction is
itemized deduction)
a. Taxable net income
b. Tax Due
c. Income tax payable

4. Suppose A is an individual taxpayer in the Philippines engaged in the

sale of services, compute for the following: (Method of deduction is
optional standard deduction)
a. Taxable income
b. Tax Due
c. Income tax payable

5. Suppose A is a domestic corporation engaged in the sale of goods,

compute for the following: (Method of deduction is itemized deduction)
a. Taxable net income
b. Tax Due
c. Income tax payable

6. Suppose A is a domestic corporation engaged in the sale of goods,

compute for the following: (Method of deduction is optional standard
deduction)
a. Taxable income
b. Tax Due
c. Income tax payable

7. Suppose A is a domestic corporation engaged in the sale of services,

compute for the following: (Method of deduction is itemized deduction)
a. Taxable net income
b. Tax Due
c. Income tax payable

8. Suppose A is a domestic corporation engaged in the sale of services,

compute for the following: (Method of deduction is optional standard
deduction)
a. Taxable income
b. Tax Due
c. Income tax payable