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    Income Taxation Practice Exercise

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    James Bryle Galagnara
    The document contains two practice tests for income taxation, with the first test listing multiple choice questions and answers. The second test presents scenarios involving individuals' income and calculates their income tax due, comparing the results of electing either an 8% tax on gross sales/receipts or graduated tax rates. It provides the taxable income, gross sales/receipts, costs of sales/services, elected option, and income tax due for each scenario between tax years 20A through 20E.

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    Income Taxation Practice Exercise

    Uploaded by

    James Bryle Galagnara
    127 views6 pages
    The document contains two practice tests for income taxation, with the first test listing multiple choice questions and answers. The second test presents scenarios involving individuals' income and calculates their income tax due, comparing the results of electing either an 8% tax on gross sales/receipts or graduated tax rates. It provides the taxable income, gross sales/receipts, costs of sales/services, elected option, and income tax due for each scenario between tax years 20A through 20E.

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    The document contains two practice tests for income taxation, with the first test listing multiple choice questions and answers. The second test presents scenarios involving individuals' income and calculates their income tax due, comparing the results of electing either an 8% tax on gross sales/receipts or graduated tax rates. It provides the taxable income, gross sales/receipts, costs of sales/services, elected option, and income tax due for each scenario between tax years 20A through 20E.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    127 views6 pages

    Income Taxation Practice Exercise

    Uploaded by

    James Bryle Galagnara
    The document contains two practice tests for income taxation, with the first test listing multiple choice questions and answers. The second test presents scenarios involving individuals' income and calculates their income tax due, comparing the results of electing either an 8% tax on gross sales/receipts or graduated tax rates. It provides the taxable income, gross sales/receipts, costs of sales/services, elected option, and income tax due for each scenario between tax years 20A through 20E.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    You are on page 1of 6

    Name: James Bryle L.

    Galagnara Date: 11/06/2021


    Section: BSBA3A
    Income Taxation
    Practice Exercises
    Test I.

    1. A 6. D
    2. C 7. B
    3. B 8. D
    4. B 9. C
    5. A 10. A

    Test II.
    1. Mr. Empoy is a government employee. He is not engaged in business nor has any other source of
    income other than his employment. For 2019, Mr. Empoy earned a total taxable compensation
    income of P900,000.00. How much is the income tax due?
    Compensation Taxable Income. P900,000
    Income Tax Due:

    On P800,000 130,000
    Tax on excess (P900,000-P800,000)×30% 30,000

    Total Tax Due: P 160,000

    2. Mr. A, an accountant, owns a small grocery. During the taxable year, he had the following gross
    receipts:
    Option 1 – 8% of gross sales/receipts
    Option 2 – Graduated rates

    Taxable Gross Sales Gross Receipts Cost of Option? Elected Income Tax
    Year (Grocery) (Profession) Sales/ (Yes or No) Option Due
    Services (Option 1)
    (Option 2)
    20A 1,800,000 500,000 P630,000 Yes 1 P164,000
    20B 2,000,000 400,000 1,300,000 Yes 1 P172,000
    20C 2,500,000 750,000 1,200,000 No 2 P506,000
    20D 2,600,000 1,100,000 2,450,000 No 2 P265,000
    20E 1,200,000 250,000 860,000 No 2 P77,000
    Solutions:
    20A Option 1
    Gross sales P1, 800,000
    Gross receipts 500,000
    Deduction (250,000)
    P2, 050,000
    Tax due 8% P164, 000
    20B Option 1
    Gross sales P2, 000,000
    Gross receipts 400,000
    Deduction (250,000)
    P2, 150, 000
    Tax due 8% P172, 000

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