Seatwork

Income Taxation
 Question No. 1
Ms. Mary Grace Hernandez is an Operations Manager of Global Food Solutions Inc., earned

annual compensation in 2018 of P1,000,000 inclusive of 13th month and other benefits in the

amount of P80,000 but net of mandatory contributions to SSS and PhilHealth. Aside from

employment income she owns a resort, with gross receipts of P1,400,000. Her cost of sales

and operating expenses are P250,000 and P100,000, respectively with non-operating income

of P350,000. She opted to be taxed at 8% on her gross sales from her income on business.
 Question No. 2
Ms. Ronacel Ibarrola owns an Events Place. She signified her intention

to be taxed at 8% income tax rate on gross receipts in his 1 st Quarter

return. She has no other source of income. His total receipts for the

year amounted to P4,500,000 with cost of sales of P2,300,000 and

operating expenses of P300,000.

 Question No. 3
Mr. Rafael Vince Ivan Luciano is a prominent independent
contractor of a Development Corporation. Since his career has
flourished, her total gross receipts amounted to P3,250,000 for
taxable year 2019. His recorded cost of service and operating
expenses were P1,150,000 and 800,000 respectively.
 Question No. 4
In 2019, Ms. Beverly Pantoja owns a Multimedia
Company with gross sales/receipts of P7,500,000.
Her cost of sales and operating expenses are
P500,000 and P100,000, respectively, and with non-
operating income of P900,000.
 Question No. 5
Ms. Annie Pilapil, an officer of Shangri-La Inc. earned in 2018 an annual

compensation of P2,500,000, inclusive of 13th month and other benefits in

the amount of P650,000. Aside from employment income, she owns a

shop with gross sales of P1,500,000. Her cost of sales and operating

expenses are P400,000 and P200,000, respectively, and with non-

operating income of P250,000.

 Question No. 6
Ms. Jella Mae Punzalan, employed in Punzalan Photo
and Video Coverage Inc., received compensation
income of P2,000,000 for 2019, inclusive of
P70,000 13th month pay and other benefits.
 Question No. 7
Ms. Marie Claire Rebong operates a hardware and at the same time,
offers an interior design services to her clients. She has the
following data for 2019 taxable year; Gross sales P1,800,000, Cost
of Sales 600,000, Operating Expenses 200,000; Interior design
gross receipts 1,150,000, Cost of Services 120,000 and Operating
Expenses 80,000.