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Answer Key Midterm Tax Review

This document contains a midterm examination in tax review for a principles of Philippine income taxation course. It includes sample questions and notes related to concepts in Philippine income taxation. Key sections include an answer summary table with multiple choice questions and answers, sample calculation notes explaining tax concepts, and examples computing gross income, allowable exclusions, and taxable amounts.

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Merry Alquero
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51 views

Answer Key Midterm Tax Review

This document contains a midterm examination in tax review for a principles of Philippine income taxation course. It includes sample questions and notes related to concepts in Philippine income taxation. Key sections include an answer summary table with multiple choice questions and answers, sample calculation notes explaining tax concepts, and examples computing gross income, allowable exclusions, and taxable amounts.

Uploaded by

Merry Alquero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Mary the Queen College of Pampanga

MIDTERM EXAMINATION IN TAX REVIEW


Principles of Philippine Income Taxation
1st Semester, A.Y. 2022-2023

Name: ________________________________________________ Score:


______________________

Year, Section and Class Time: __________________________ Date:


_________________________

ANSWER SUMMARY TABLE

41.A 51. B 61. A


1. B 11.C 21.A 31.B

42. D 52. A 62. C


2. B 12. A 22. C 32. B

43. C 53. D 63. E


3. C 13. D 23. A 33. B

44. B 54. D 64. B


4. C 14. A 24. B 34. C

45.A 55.B 65.C


5. C 15. D 25. A 35. D

46.D 56.C 66.D


6. C 16. D 26. D 36. C

47. D 57. D 67. C


7. C 17.C 27. A 37. D

48.B 58.A 68.A


8. C 18. A 28. D 38. B

49.C 59.D 69.C


9. C 19. C 29. B 39. C

50. B 60. C 70. B


10. D 20. C 30. C 40. C

#9. Note #12


Total gross compensation P410,000
Less: non-taxable 105,000
Taxable compensation 305,000
Add: Net taxable income-business 375,000
Total taxable income 680,000
#10 Gross Income from operations (840T-
P565,000
25T-250T)
Total Compensation P750,000
Gross Income from operations 840T-25T-250T P565,000
Less:OPEX
Less: Non-taxable compensation (30T+90T) 190,000
120,000.00
Less: OPEX 190,000
Net Taxable income Net taxable
P375,000Taxable income - business
Compensation P375,000
P630,000

#11
Gross Income from operations (840T-
P565,000
25T-250T)
Less:OPEX 190,000
Net taxable income - subject to RIT P375,000
Add: Interest - subject to FIT 10,000
Total taxable income 385,000

#13 Note
P350,000 – The amount is already exclusive of exempt income and the net loss from business cannot be offset against the
taxable compensation.

#14

Sales including incidental income P2,800,000


Less: Discounts 50,000
Total sales 2,750,000
Less: Cost of sales 1,200,000
Gross income - operations P1,550,000

#15 Note
*Statement 1 – false – the amount is a donation
*Statement 2 – true – the stocks are in consideration of services hence, a form of compensation

#22 Note
400T + 200T + 100T = P700,000

#24 Note
500T + 800T = P1,300,000
“The 2,000,000 retirement pay of Pedro is taxable because there is no showing that he retired under the conditions in
RA 7641

#25 Note
P300,000 – The 300,000 separation pay of Kelvin is non-taxable because his separation is beyond his control
(redundancy). On the other hand, Jake voluntarily resigned therefore, his separation pay of P400,000 is taxable.
There is no showing that he retired under the conditions of RA 7641.

#26 Note
P4,500,000; The 3-5M retirement pay is tax-exempt separation pay. The 1M gratuity on top of the retirement pay is
donation and not income of Quintin

#28
SSS, Philhealth, Pag-ibig 75,000
Union dues 6,000
13th month pay 90,000
Total exclusions P171,000

#40 Note
*The 1,900,000 is their corporate dividend.
*As to the 3,000,000 the problem is silent on the conditions that should exempt the income from tax

#46

50 meters

#52
The amount paid for by the company is under the “employer’s convenience rule”.
#53:The premium payment by the company is not a benefit to the employee but an expense of the company.

#67

Inventory P80,000
Excess materials (incidental income) 7,000
Total gross income from operations P87,000

#68

Inventory P80,000
Excess materials (incidental income) 7,000
Office equipment 20,000
Office furniture 3,000
Total ordinary gross P110,000

#69

Ordinary gain-office equipment P20,000


Ordinary gain-office furniture 3,000
Total non-operating income P23,000

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