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Saint Columban College College of Busineess Education Pagadian City Income Taxation Midterm Examinations

This document contains an income taxation midterm exam for Saint Columban College. The exam contains multiple choice questions testing understanding of income tax rates and calculations for individuals with different sources of income, including employment compensation, business income, and real estate commissions. It also contains questions requiring calculation of fringe benefit tax owed by employers for various benefits provided to employees such as cash, housing, vehicles, loans, and use of land.

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513 views1 page

Saint Columban College College of Busineess Education Pagadian City Income Taxation Midterm Examinations

This document contains an income taxation midterm exam for Saint Columban College. The exam contains multiple choice questions testing understanding of income tax rates and calculations for individuals with different sources of income, including employment compensation, business income, and real estate commissions. It also contains questions requiring calculation of fringe benefit tax owed by employers for various benefits provided to employees such as cash, housing, vehicles, loans, and use of land.

Uploaded by

carl fuerzas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SAINT COLUMBAN COLLEGE

COLLEGE OF BUSINEESS EDUCATION


PAGADIAN CITY

INCOME TAXATION
MIDTERM EXAMINATIONS

I. Multiple Choice.

1. Juan is Mixed Income Earner. He is self-employed resident citizen and currently the Finance manager of Omega Co.
The following data were provided for 2019 taxable year:

Compensation Income 1,800,000


Sales 2,800,000
Cost of sales 1,125,000
Business Expenses 650,000
How much is his 8% gross receipts tax?
a. 134,000 b. 82,000
c. 198,000 d. 224,000
2. Same data as no. 1, how much is Juan’s regular income tax other than the 8% gross receipts tax?
a. 430,000 c. 425,000
b. 420,000 d. 435,000
3. How much is his total income tax expense assuming he opted to be taxed at 8%?
a. 654,000 b. 564,000
c. 649,000 d. 502,000
4. Mr. Mag a financial controller of Jab Company earned annual compensation income in 2019 of 1,500,000, inclusive of
13th month and other benefits amount of 120,000. Aside from employment income, he owns a convenience store, with
gross sales of 2,400,000. His cost of sales is 1,000,000 and operating expenses is 600,000 and with non-operating income
of 100,000. Assume he signified his intention to be taxed at 8% income tax rate in his 1st quarter return, the total income
tax due is
a. 513,000 c. 313,000
b. 589,200 d. 493,000
5. Based on the preceding number, if he did not opt for the 8% income tax, his income tax due is
a. 513,000 c. 313,000
b. 589,200 d. 493,000
6. Ms. Cyril is employed in MAFD Corp. and is also a part-time real estate agent. In addition to a Statutory Minimum
wage of 180,000 she also received 75,000 as commission from her real estate dealings for the taxable year. How much is
the income tax liability for the year under the Graduated Income Tax regime?
a. 1,000 c. 20,400
b. 6,000 d. nil
7. Based on the preceding number, how much is the income tax liability under the 8% gross receipts tax?
a. 1,000 c. 20,400
b. 6,000 d. nil

II. Compute for the Fringe Benefit tax to be paid by the employer. The employer gave the following: (each number are
separate cases). Provide your answer.

1. To Carl a manager, Cash 60,000 and a house rented by the employer with monthly rental of 10,000
2. To Erika a Regional Supervisor, a sports car bought by the employer in the name of Erika worth 1,500,000
3. To Artchiel a inventory personnel, a motorcycle bought by the employer in his name worth 80,000
4. To Marlon a Vice President, house owned by the employer for his use, Fair market value of 2,500,000, Zonal Value
2,600,000. It was acquired by the employer with a cost of 3,000,000
5. To Rizyl a warehouse attendant, the employer loaned her money 20,000 with a interest rate of only 3%.
6. To Kline a Department manager, gave her a land but no change of ownership occurred, the FMV is 1,500,000 ZV is
1,400,000, Depreciation Value 1,450,000.

END
GOOD LUCK 

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