1.

The records of ZZZ, sole-proprietor of ZONE Wet Goods Store, show the following data: Gross sales,
P2,800,000; cost of sales, P800,000; operating expenses, P1,300,000; non-operating income, P100,000.
How much is the income tax due if Mr. BBB avails himself of the 8% income tax rate?
A. P232,000.
B. P212,000.
C. P224,000.
D. P64,000.

Gross sales P 2,800,000

Add: Non-operating income 100,000
Total income 2,900,000
Less: Amount allowed as deduction 250,000
Taxable income 2,650,000
Multiplied by tax rate 8%
Income tax due P 212,000

2. Atlanta Corporation, a domestic corporation, had the following data for the years 2022 and 2023:
2022 2023
Sales P 10,000,000 P 15,000,000
Cost of sales 4,000,000 6,000,000
Deductible expenses 6,100,000 7,000,000
Capital gains 50,000 100,000
Interest income on trade notes receivable 10,000 30,000
Rent income 430,000 600,000
Total assets 500,000,000 550,000,000

How much is the total deferred charges in 2023?

A. P519,000.
B. P569,150.
C. P519,150.
D. P594,600.

2022 2023
Sales P 10,000,000 P 15,000,000
Less: Cost of sales 4,000,000 6,000,000
Gross income 6,000,000 9,000,000
Capital gains 50,000 100,000
Interest income on trade notes receivable 10,000 30,000
Rent income 430,000 600,000
Total gross income 6,490,000 9,730,000
Less: Deductible expenses 6,100,000 7,000,000
Taxable income P 390,000 P 2,730,000

NIT (Taxable income x 25%) P 97,500 P 682,500

MCIT (Total gross income x 1%/1.5%) P 64,900 P 145,950

Income tax (higher) P 97,500 P 682,500

Excess MCIT carried forward
Income tax payable P 97,500 P 682,500

3. Mr. PPP is a Filipino residing in Muntinlupa City. Aside from being employed as an accounting supervisor at
a private bank where he earns an annual salary of P600,000, he is also the sole proprietor of HOPE
Enterprises whose records during the taxable year show the following data: Gross sales, P4,000,000; cost
of sales, P1,200,000; operating expenses consisting of salaries and wages, P240,000; utilities, P50,000;
rent, P60,000; depreciation, P160,000; and miscellaneous, P40,000; and net capital gain of P10,000. How
 much is the taxable income of Mr. PPP during the taxable year assuming that he availed himself of the
Optional Standard Deduction?
a. P3,010,000.
b. P3,006,000.
c. P2,766,000.
d. P2,770,000.

Salary P 600,000
Gross sales P 4,000,000
Less: OSD (P4,000,000 x 40%) 1,600,000
Net income from business 2,400,000
Net capital gain 10,000
Taxable income P 3,010,000

4. Mr. Sofronio Suarez, production manager of Lumina Manufacturing Corporation, received, in addition to his
salary, thirteenth month pay, and productivity bonus, the following payments from the company during the
year:
Cash price of a Toyota Accord car P 3,000,000
Proceeds of an 8% interest-bearing loan from the company 940,000
Rental of residential house where Mr. Suarez resides 360,000
Reimbursement for groceries which Mr. Suarez bought for his
personal consumption 40,000
Rice subsidy at P2,000 per month 24,000

Your review of the company’s records yielded the following information:

a. Forty percent (40%) of the cost of the car which was to be transferred in the name of Mr. Suarez upon
purchase will be shouldered by Mr. Suarez by way of monthly salary deduction of P25,000 per month
for a period of 4 years.

b. The loan, which was obtained by Mr. Suarez from the company at the start of the year, is payable in
9 months.

Round your answer to the nearest peso . (e.g. 101.50 = 102)

How much is the fringe benefit tax on the payments received by Mr. Suarez?
a. P3,153,846.
b. P1,103,846.
c. P2,050,000.
d. P5,304,000.

Computation of fringe benefit tax:

Toyota Accord car (P3,000,000 x 60%) P 1,800,000
Interest forgone by the company (Schedule 1) 30,000
Rental of residential house (P360,000 x 50%) 180,000
Reimbursement for groceries which Mr. Suarez bought for his
personal consumption 40,000
Total monetary value of benefits P 2,050,000
Grossed-up monetary value of benefits (P2,050,000/65%) P 3,153,846
Fringe benefit tax (P3,153,846 x 35%) P 1,103,846

Schedule 1 – Computation of interest foregone by the employer

Let P = Principal

2
 = P940,000 + (P x .08 x 9/12)
= P940,000 + .06P
P - .06P = P940,000
.94P = P940,000
P = P1,000,000

Interest foregone by the employer

P1,000,000 x (.12 - .08) x 9/12 = P30,000

5. Ms. ZZZ is engaged in a VAT-business and a non-VAT business. Her records show the following data, no
tax included, for the taxable year:

Sales
From VAT business P 6,000,000
From non-VAT business 4,000,000
Purchases of goods
For VAT business from VAT suppliers 3,000,000
For non-VAT business 2,000,000
Purchases from VAT suppliers of supplies used for VAT and non-VAT
Business 30,000
Expenses incurred for both VAT and non-VAT business (70% of these
expenses were paid to VAT-registered enterprises) 100,000

The VAT payable is:

a. P352,800.
b. P272,000.
c. P584,400.
d. P348,000.

Output tax (P6,000,000 x 12%) P 720,000

Less: Input tax
Purchase of goods (P3,000,000 x 12%) 360,000
Purchase of supplies
(P30,000 x 6/10 x 12%) 2,160
Payment of expenses
(P100,000 x 70% x 6/10 x 12%) 5,040 367,200
VAT payable P 352,800

3
6. The Bonchon Construction Corporation, a VAT-registered taxpayer, had the following data on its
construction projects, VAT not yet included, for the last quarter of 2019:
Hallmark Building – 100% complete
Contract price P20,000,000
Collections in October and November 2019 10,000,000
Partial collection of retention receivable in December 2019 2,000,000
Summit Business Center – to be started in January 2020
Contract price 15,000,000
Cash advances received for mobilization 300,000
Deposits received in 2019 for materials 2,000,000
Purchase of materials from VAT suppliers (of which 70% was paid) 6,000,000
Subcontracting services to VAT service providers during the quarter
(of which 80% was paid) 2,250,000

How much is the VAT payable at the end of the quarter?

a. P1,032,000.
b. P780,000.
c. P600,000.
d. P2,664,000.

Output tax
Collections on Hallmark Building project
[(P10,000,000 +2,000,000) x 12%] P 1,440,000
Collections on Summit Business Center project
[(P300,000 + 2,000,000) x 12%) 276,000 P 1,716,000

Less: Input tax

Purchase of materials (P6,000,000 x 12%) 720,000
Payment for subcontracting services
(P2,250,000 x 80% x 12%) 216,000 936,000

VAT payable P 780,000

4
7. Mr. Hilario Hernandez is the owner of 20 units of one-bedroom residential apartments which are leased out
at a monthly rental of P14,000, and 15 units of two-bedroom apartments which are leased out at a monthly
of P17,000. All the said units were leased out throughout the whole calendar year 2020. How much is the
VAT on the gross receipts of Mr. Hernandez for the year?

Answer: P367,200 . (15 units x P17,000 x 12 months = P3,060,000) (P3,060,000 x 12% = P367,200.)

8. Mr. Galileo Lantanas, sole proprietor of GALLANT Enterprises, started business operations in 2019 as a non-
VAT taxpayer. By the end of the year his sales exceeded P3,000,000 prompting him to register as a VAT
taxpayer starting January 2020. The following information appeared in his records as of December 31,
2019:

Goods for sale (purchased from VAT suppliers)

Inventory value P 120,000
Actual input tax paid 3,500

Supplies used in business (purchased from VAT suppliers)

Inventory value P 65,000
Actual input tax paid 1,100

Goods and supplies (purchased from non-VAT suppliers)

Inventory value P 35,000
Cost 30,000

For the month of January 2020, sales and purchases amounted to P650,000 and P330,000, respectively, VAT
not yet included.

How much is the VAT payable as at January 31, 2020?

Answer: P33,600.

Output tax (P650,000 x 12%) P 78,000

Less: Input tax

Purchases (P330,000 x 12%) P 39,600
Transitional input tax
Goods for sale
Inventory value (P120,000 x 2%) P 2,400
Actual input tax paid 3,500
Higher 3,500
Supplies
Inventory value (P65,000 x 2%) 1,300
Actual input tax paid 1,100
Higher 1,300 44,400
VAT payable P 33,600

5
Use the following information for the next three (3) questions:

A operates a cockpit. Inside the cockpit, he also operates a restaurant. Data for the particular quarter (year 2022)
follow:
Gross Receipts:
Cockpit operation P500,000
Restaurant operations:
Sale of food 100,000
Sale of liquor 150,000

9. The amusement tax due from A is

A. P90,000 B. P135,000 C. P225,000 D. P75,000

10. Using the above data, except that the restaurant is not owned by A but is owned by another person, B, not
VAT-registered and whose annual gross sales never exceeded P3,000,000. The amusement tax due from
A is
A. P90,000 B. P135,000 C. P225,000 D. P75,000

11. Continuing the preceding number, the percentage tax due from B is
A. P90,000 B. P135,000 C. P7,500 D . P2,500

Use the following information for the next two (2) questions:

A, a resident citizen, promoted a world boxing championship in Manila featuring B, a Filipino champion. Gate receipts
amounted to P3,000,000 and additional receipts from television coverage was P2,000,000.

12. The amusement tax due is

A. None B. P500,000 C. P300,000 D. P900,000

13. Assuming that the above data is not a world championship but a Philippine national boxing championship,
how much is the amusement tax?
A. None B. P500,000 C. P300,000 D. P900,000

14. Under Section 145 of the Tax Code, as amended, cigars shall be subject to an excise tax in accordance with
the following schedule:
1/1/2017 2018 onwards
1. Ad valorem tax rate based on the net retail price 20% 20%
*per cigar
2. Specific tax (per cigar) P5.85 per cigar Specific tax shall be
increased by 4% every
year

Action Cigar Company manufactured cigars and removed them from the place of production on October 2018.
The retail selling price per box, net of VAT and excise tax, was P3,000, and 1 box of cigars contained 25 cigars.

*Net retail price (excl uding excise tax and VAT) per cigar (Sec. 145, NIRC)

Round your answer to the nearest peso . (e.g. 734.5 = 735)

Compute the total excise t ax due on a box of cigars.

A. P746.25 B. P875.65 C. P752.00 D. P734.00

Cigars ( P5.85 x 1.04) = P6.084 x 25 P152.1

Retail selling price P3,000 x 20% 600
P752.10

6
Use the following information for the next three (3) questions:

BBB Company with assets of P20,000,000 had the following income and expenses:
Gross income, Philippines P1,200,000
Expenses, Philippines 800,000
Gross income, United States US $125,000
Expenses, United Sates 62,000
Gross income, Hongkong HK $345,000
Expenses, Hongkong 230,000

Exchange rate: US $1 = P48

US $1 = HK $5

15. Assuming that the above corporation is organized and operating under the Philippine law, the tax payable
is__
A. P1,478,400
B. P985,600
C. P1,232,000
D. P905,600

16. Assuming that the above corporation is a nonresident cinematographic film distributor, the final tax is
A. P100,000
B. P300,000
C. P873,750
D. None

17. Assuming that the above corporation is a nonresident owner of vessels charged by Philippine nationals, the
final tax is
A. P129,275
B. P54,000
C. P18,000
D. None

18. AAAA Drinks Corporation, a manufacturer of carbonated drinks, will remove from its place of production 250
cases of its beverage containing high fructose corn syrup (HFCS) and a non-caloric sweetener. Each case
contains 6 bottles of 1.5 liters each. Compute the excise tax to be paid before removal.
A. P27,000 B. P25,400 C. P21,600 D. P42,300

(250 cases x 6 bottles x1 .5 liters) x P12/L P27,000

19. The following information are shown below:


A promissory note is issued with a face value of P250,000 with a term of 2 years.

A promissory note is issued with a face value of P250,000 with a term of 120 days.

Round your answer to the nearest peso . (e.g. 734.5 = 735)

The DST due is________________

A. P1,875 B. P2,491 C. P3,100 D. P2,300

P250,000 x P1.5/P200 = 1,875

P250,000 x P1.5/P200 = 1,875 X 120 DAYS/365 DAYS = P616.44

20. Kaloy invested in the bonds of AAA Company in the United States. The bonds were issued at a price of
P26,000,000 in Peso equivalent. The bonds pay 9% annual interest and matures in 4 years. Kaloy
transferred the bonds at a consideration of P27,000,000 in the Philippines to ABM Investors. Compute the
DST.
A. P195,000

7
 B. P196,000
C. P197,000
D. P198,000

The issue of the bonds abroad is not subject to documentary stamp tax. The subsequent sale of the bonds in
the Philippines is subject to documentary stamp tax at the rate applicable on issue of domestic bonds

Issue price 26,000,000

Multiply by: P1.50 / P200 0.75%
Documentary stamp tax 195,000

Use the following information for the next four (4) questions:

ABC Corporation has the following information for the taxable year 2022:

Quarter RCIT MCIT CWT

1st P200,000 P160,000 P40,000
2nd 240,000 500,000 60,000
3Rd 500,000 150,000 80,000
4th 300,000 200,000 70,000

MCIT carry-over from prior year amounts to P60,000 and excess tax credits from prior year amounts to P20,000.
21. How much was the income tax payable for the first quarter?
A. P200,000 B. P160,000 C. P120,000 D. P80,000

22. How much was the income tax payable for the second quarter?
A. P660,000 B. P460,000 C. P200,000 D. P160,000

23. How much was the income tax payable for the third quarter?
A. P860,000 B. P120,000 C. P600,000 D. P140,000

24. How much was the annual income tax payable?

A. P1,260,000 B. P390,000 C. P230,000 D. P930,000

25. DST is necessary is

A. Sale of real property
B. Inheritance of real property
C. Estate tax payment
D. Donation of real property exempt from the donor’s tax

26. The Government issued bonds to finance its infrastructure projects. The terms of the bond issue provide
that interest income of 6% per annum on the bonds shall be tax-exempt if the bonds were to be held up to
the end of five years. Induced by the tax exemption, Mr. Suave purchased bonds worth P10,000,000.00.
Subsequently and before the maturity date (end of five years) of the bonds, Congress passed a law revoking
the tax exemption on the interest income on the bonds. The law passed by Congress is invalid because it
violates the:
a. due process clause.
b. non-impairment clause.
c. uniformity clause.
d. equal protection clause.

27. Export-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation for
the vacation expenses of Mr. Leandro Lopez, its warehouse manager, in April 2020. The journal entry to
record the fringe benefit exp ense and fringe benefit tax expense is:
a. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash,
P13,000.00; Fringe benefit tax payable, P7,000.00.

8
 b. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Fringe
benefit expense payable, P13,000.00; Fringe benefit t ax payable, P7,000.00.
c. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credit: Cash,
P20,000.00.
d. Debits: Fringe benefit expense, P20,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash,
P20,000.00; Fringe benefit tax payable, P7,000.00.

28. The Roman Catholic Church of Santa Barbara owns three lots. Lot A is occupied by the church building,
parish office and the priest’s residence; Lot B is leased to Mack’s Rest aurant; while Lot C is vacant.
a. All the lots are exempt from real property tax, while the rent income on the lease of Lot B is exempt
from income tax.
b. Lot A and Lot C are exempt from real property tax; Lot B is subject to real property tax, while the rent
income from the lease of Lot B is exempt from income tax.
c. Lot A and Lot C are exempt from real property tax; Lot B is subject to real property tax; while the rent
income on the lease of Lot B is subject to income tax.
d. Lot A is exempt from real property tax; Lot B and Lot C are subject to real property tax; while the rent
income on the lease of Lot B is subject to income tax.

29. One of the following is not a transaction deemed sale and is therefore not subject to VAT. Which is it?
a. Transfer, use or consumption not in the ordinary course of business of goods or properties originally
intended for sale or for use in the course of business.
b. Distribution or transfer to stockholders or investors of goods or properties as share in the profits of a
VAT-registered person.
c. Distribution or transfer to creditors of goods or properties of a VAT-registered person in payment of debt.
d. Consignment of goods if actual sale is not made within 30 days following the date such goods were
consigned.

30. Which of the following transactions is exempt from the v alue-added tax?
a. Importation of lumber.
b. Sale of salted egg by a grocery store.
c. Sale of roasted chicken by a restaurant.
d. Prize received by a professional boxer.

31. The following transactions are exempt from VAT, except:

a. Importation of prescription drugs for diabetes, high cholesterol, and hypertension.
b. Sale of prescription drugs for cancer, mental illness, tuberculosis and kidney diseases.
c. Salary paid by a hospital to a registered medical technologist who performed laboratory services for
inpatients.
d. Sale of cough syrup by the pharmacy of a hospital to outpatients.

32. The presumptive input tax may be claimed as a credit against output tax by the following taxpayers, except:
a. Processors of sardines.
b. Manufacturers of flour.
c. Manufacturers of refined sugar.
d. Processors of milk.

33. These statements are presented to you for evaluation:

Statement I – Any person who, in the course of trade or business, sells, barters, exchanges goods for
properties shall be required to register as a VAT taxpayer if his gross sales or receipts for the past twelve (12)
months, other than those exempt, exceeds P3,000,000.

Statement II – If a taxpayer engaged in a business which is exempt from VAT purchases goods from a VAT-
registered supplier, the input tax fr om the purchase made by him becomes part of the cost of his purchase.

In your evaluation of the foregoing statements:

a. Both statements are true.
b. Both statements are false.

9
 c. Only Statement I is true.
d. Only Statement II is true.

34. Statement 1: A taxpayer whose gross sales or receipts exceeded the amount of P3,000,000 shall pay VAT
even if he is not VAT registered; consequently, he is also entitled to input taxes.

Statement 2: Importer of goods for personal use is not subject to VAT if he is not-VAT registered
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true

35. Which of the following is not correct?

I. Any person who is not subject to mandatory registration because his actual or expected gross
sales/receipts from non-exempt business for the past 12 months do not exceed P3,000,000, may opt
to register under the VAT system, but shall not be allowed to cancel his VAT registration for the next
three years.
II. Any person who is VAT-registered but enters into t ransactions which are exempt from VAT may opt that
the VAT apply to his transactions which would have been exempt but shall not be allowed to cancel his
VAT registration for the next three years.
III. Franchise grantees of radio and/or television broadcasting whose annual gross receipts of the preceding
year do not exceed P10,000,000 may opt for VAT registration, but shall not be allowed to cancel his
VAT registration for the next three years.

A. III only
B. II only
C. I only
D. I, II, and III

36. Sale, importation, printing, or publication of books and any newspaper, magazine, review, or bullets which
appears at regular intervals with fixed prices for subscriptions and sale, and which is not devoted principally
to the publication of paid advertisements is:
A. Subject to VAT and OPT
B. Subject to VAT, exempt from OPT
C. Exempt from VAT and OPT
D. Exempt from VAT, subject to OPT

Use the following information for the next five (5) questions:

CCCCC is a common carrier with passenger buses and cargo trucks. For the month of June 2022, it had the following
data on gross revenues and receipts (exclusive of taxes)
For transporting passengers (receipts) P660,000
For transporting cargoes (revenues) – The actual receipts amounted only to 440,000
P400,000
For renting out to the MMDA its towing trucks (receipts) – P20,000 represents 100,000
revenue from the first quarter and the balance of P80,000 represents receipts
from income earned in June.

Banco de Manila, Inc. has the following data for the first month of current year:
Interest, commissions and discounts from lending activities (remaining maturity P7,000,000
is 5 years)
Income from financial leasing (remaining maturity is more than 5 years) 5,000,000
Dividends and equity shares in net income of subsidiaries 1,000,000
Rental of properties 500,000
Net trading gains on foreign currency (year 2022) 300,000
Net trading loss on foreign currency (year 2021) 100,000

Pro-Life Insurance is engaged in business. It also serves as an agent of a marine foreign insurance company. It has
the following data for the current month:
For fire, marine, or miscellaneous insurance agent P2,000,000

10
 For owners of property who obtain insurance directly with foreign companies 5,000,000

XYZ a domestic insurance company has the following data for 2022:
Premiums collected on life insurance policies P8,000,000
Premiums returned within 6 months. After the payment on account of rejection 500,000
of risk
Reinsurance premium (tax has already been paid) 200,000
Premiums collected by branch doing business outside the Philippines from non- 300,000
residency policy holders.
Investment income realized from the investment of funds 1,000,000
Investment income earned by the life insurance company from investing the 2,000,000
premiums

BBBBB Air Lines (a resident international carrier) has the following data for the current year:
Gross receipts, Philippines (passenger operations) (from Phils. to Japan) P10,000,000
Gross receipts, Philippines (cargo operations) (from Phils. to Japan) 9,000,000
Gross receipts, Japan (passenger operations) (from Japan to Phils.) 8,000,000
Gross receipts, Japan (cargo operations) (from Japan to Phils.) 5,000,000
Gross receipts, Philippines (Souvenir items) 2,000,000
Expenses, Philippines (passenger operations) 4,000,000
Expenses, Philippines (cargo operations) 2,000,000
Expenses, Japan (passenger operations) 4,500,000
Expenses, Japan (cargo operations) 1,250,000

Based on the information above, answer the following:

27. How much should CCCCC report total business tax?

A. P34,800 B. P19,800 C. P60,000 D. P31,800

28. How much should Banco de Manila report the gross receipt tax?
A. P490,000 B. P456,000 C. P336,000 D. P329,000

29. How much is the total business taxes of Pro-Life Insurance?

A. P330,000 B. P220,000 C. P200,000 D. P104,000

30. How much is the tax on life insurance premiums of XYZ a domestic insurance company?
A. P220,000 B. P200,000 C. P180,000 D. P160,000

31. How much is the total business tax due for the year of BBBBB Air Lines?
A. P510,000 B. P270,000 C. P390,000 D. P395,000

Use the following information for the next four (4) questions:

Ms. AAAA’s residential building is located in Santiago City measuring 1,000 sq. m. with the following additional
information:

Fair market value in tax declaration – P10,000/ sq. m.

Zonal Value – P8,000/ sq. m.

The assessment level is the following:
FMV Over But Not Over Assessment Level
0.00 P175,000 0%
P175,000 300,000 10%
300,000 500,000 20%
500,000 750,000 25%
750,000 1,000,000 30%
1,000,000 2,000,000 35%
2,000,000 5,000,000 40%
5,000,000 10,000,000 50%
10,000,000 60%

11
Based on the information above, answer the following:

32. How much is the total real property tax due?

a. P60,000
b. P40,000
c. P150,000
d. P80,000

10,000,000 x 50% = (5,000,000 Ass. Value)

Basic (5,000,000 x 2%)

SEF (5,000,000 x 1%)
150,000

33. How much is the maximum amount of deduction from real property tax due i f the taxpayer pays in advance?
a. P4,000
b. P12,000
c. P30,000
d. P16,000

150,000 x 20%=

34. Assuming the real property t ax is unpaid, how much is the maximum amount of interests on unpaid real property
tax for the year?
A. P100,000 B. P104,000 C. P106,000 D. P108,000

(150,000 x 72%) = P108,000

35. Assuming the real property from the above data is owned by a Domestic Corporation. How much is the total
community tax?
A. P500 B. P2,500 C. P4,500 D. P4,000

500 + (5,000,000 / 5,000 x 2) = P2,500

IndividualCorporation

P 5 P 500
Basic community tax
Additional community tax

(Gross receipts from business + Gross receipts from the

profession or occupation + Income from real property)
x P1

P1,000 Lower

or

P5,000

12
 (Assessed value of real property *** +Gross receipts from
business + Dividend received from corporation)
x P2

P5,000 Lower

or

P10,000

Total Community Tax xxx xxx

Maximum (Total community tax) P5,005 P10,500

*** movable or immovable property

Use the following information for the next three (3) questions:

To improve her body shape Ms. Ganda decided to undergo procedure and sought the services of the Body Beautiful,
a clinic operated outside the hospital and owned by Below Medical Center Group Company. Body Beautiful charged
Ms. Ganda the amount of P224,000 (inclusive of 12% but exclusive of excise tax) for the service rendered.

Ms. Ganda bought residential house for P4,000,000. He paid P1,000,000 down and mortgage back the property as
security for t he P3,000,000.

Based on the information above, answer the following:

36. How much is the excise tax?

A. P5,250 B. P10,000 C. P4,762 D. P4,784

37. How much is the VAT?

A. P25,600 B. P12,000 C. P10,714 D. P10,900

38. How much is the DST from the mortgage?

A. P12,060 B. P11,890 C. P12,020 S. P11,800

Use the following data for the next two (2) questions

Mr. Uno had the following records of his horse races in the current month of 20X1:
Horse Type of Gross winnings Cost of
winnings Winnings
A Trifecta P90,000 P40,000
B Ordinary 250,000 50,000
C Double 50,000 10,000
D Ordinary 175,000 25,000

Based on the information above, answer the following:

39. How much percentage taxes were paid by Mr. Uno?___

A. P50,000
B. P56,500
C. P65,500
D. P45,500

40. How much is the total documentary stamp tax?

A. P25,000
B. P30,000
C. P35,000

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 D. P40,000

41. From the following data, compute the income tax still due from a domestic corporation engaged in merchandising
business. For the calendar year 2022, the net income per books (after tax) is P850,000, after considering among
others:
Interest income from bank deposits P5,500
Inter-corporate dividends 5,000
Gain from sale of shares in a domestic corporation 7,000
Net capital loss 2,500
Bad debts written off 6,500
Write-off of inventories lost due to spoilage or expiry 12,000
Depreciation on appraised value of property 15,000
Surcharge and compromise paid in relation to the late filing of ITR 80,000
Contribution to a government exclusively for public purpose 50,000
Contribution to government’s priority program in education 10,500
Quarterly income tax payments 65,000
Provision for bad debts 8,000

The net income per books should be reconciled with the provisions of the Tax Code, meaning, items which are not
taxable must be excluded, and items which are not de ductible are to be added back.

Additional information:

Withholding tax at source ( Form 2306) P20,000

Withholding tax at source (Form 2307) P50,000

How much is the net tax due and payable?

A. P131,700 B. P113,715 C. P113,550 D. P137,125

Net income per books 850,000

Interest income from bank deposits (5,500)
Inter-corporate dividends (5,000)
Gain from sale of shares in a Domestic (7,000)
Net capital loss 2,500
Bad debts written off (6,500)
Write off of inventory lost due to spoilage 12,000
Depreciation on appraised value of property 15,000
Surcharge and compromise 80,000
Quarterly income tax payments 65,000
Provision for bad debts 8,000
Net income after charitable and other constribution 1,008,500
Add: C haritable and other contributions 60,500
Net income before charitable and other constribution 1,069,000
Less: C haritable and other contributions
Deductible in full 10,500
Deductible with limit (Actual vs limit) lower
Actual 50,000
Limit (5% x 1,069,000) 53,450 50,000 (60,500)
Taxable net income 1,008,500
Tax rate 25%
Tax due 252,125
C WTax (50,000)
Less: Quarterly tax payments (3 quarters) (65,000)
Tax payable 137,125

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