Drills

Income Tax
1. Mr. John Abdula Arcega operates a
Convenience Store while he offers
consulting services to his clients. In
2018, her gross sales amounted to
P800, 000, in addition to his
receipts from consulting services of
P300,000. He already signified his
intention to be taxed at 8% income
tax in his 1st quarter return.
2. Mr. Mark Jason Argonza is a Financial Director
of Security Bank, earned annual compensation
in 2018 of P1,500,000 inclusive of 13th month
and other benefits in the amount of P120,000
but net of mandatory contributions to SSS and
PhilHealth. Aside from employment income he
owns a convenience store, with gross sales of
P2,400,000. His cost of sales and operating
expenses are P1,000,000 and P600,000,
respectively with non-operating income of
P100,000. He opted to be taxed at 8% on his
gross sales from his income on business.
3. Ms. Gizelle Ann Atienza owns a famous
Pizza Parlor, named Yellow Cab Pizza Inc.
She signified her intention to be taxed at
8% income tax rate on gross sales in his
1st Quarter return. She has no other
source of income. His total sales for the
year amounted to P6,500,000 with cost
of sales of P3,000,000 and operating
expenses of P1,440,000.
4. Ms. Mikka Nicole Averion is a
prominent independent contractor of
Disney Architectural and Engineering
Services. Since her career has
flourished, her total gross receipts
amounted to P4,250,000 for taxable
year 2019. Her recorded cost of
service and operating expenses were
P2,150,000 and 1,000,000
respectively.
5. In 2019, Ms. Roselle Cerillo owns
a Travel Agency with gross
sales/receipts of P2,500,000. Her
cost of sales and operating
expenses are P1,000,000 and
P600,000, respectively, and with
non-operating income of
P100,000.
6. Ms. Mizshayne Edroso, an officer of
Jollibee Foods Corporation earned in
2018 an annual compensation of
P1,200,000, inclusive of 13th month and
other benefits in the amount of
P120,000. Aside from employment
income, she owns a farm with gross sales
of P3,500,000. Her cost of sales and
operating expenses are P1,000,000 and
P600,000, respectively, and with non-
operating income of P100,000.
7. Ms. Joana Erica Fule, employed in
STI College Inc., received
compensation income of
P5,000,000 for 2019, inclusive of
P400,000 13th month pay and
other benefits.
8. Mr. Kervin Flaviano operates an
Amusement Park while he offers
consulting services to his clients. In
2018, her gross receipts amounted
to P4,000,000, in addition to his
receipts from consulting services
of P700,000. He already signified
his intention to be taxed at 8%
income tax in his 1st quarter return.