PHILIPPINE COLLEGE OF TECHNOLOGY

COLLEGE OF BUSINESS
Garden Park Village, Bajada, Davao City

Tax 1
Final Examination

Name:_Sany E. Duay Jr. Time of Exam: _________________________________

Course & Year:__2nd Yr./BSCA Date of Exam:__________________________________
Instructor: Marco Vanroe A. Umalay,LPT Permit Number:________________________________

I- INSTRUCTIONS: Select the correct answer for each of the following questions. (2 PTS EACH)

1. Which statement is TRUE about Taxation?

A. It is a State of power, a legislative process, and a mode of government cost
distribution.
B. It is an inflow of wealth from businesses, exercise of profession and others sources.
C. It is an imposition of fees for government reserve.
D. It is the process or means of government to carry its own expenses

2. It means all gains, profits, and income, except (passive) income subject to final tax and
exempt come (exclusions), derived during as taxable year by a taxpayer from whatever
source.
A. Interest
B. Income
C. Gross Income
D. Tax

3. It is immunity to particular persons or corporations or to persons or corporations of a

particular class from a tax which persons and corporations generally within the same
district are obliged to pay.
A. Exemptions
B. Personal Exemptions
C. Company Exemptions
D. Exempt Corporations

4. It is a state power, a legislative process and a mode of government cost distribution.

A. Executive power
B. Judiciary
C. Taxation
D. Legislation

5. The point at which the tax is levied is also called

A. Impact of taxation
B. Situs of taxation
C. Incidence of taxation
D. Assessment

6. Which is a national tax?

A. Real property tax
B. Community tax
C. Income tax
D. Professional tax

7. Which is correct?
A. Taxes may be subject to compensation
B. Toll, being a demand of ownership, is exercised only by private entities
 C. Dacion in pago and cession in payment are applicable to taxation
D. Special assessment applies only when public involvement is made
8. Which is an indirect tax?
A. Value-Added Tax
B. Donor’s Tax
C. Income Tax
D. Real property tax

9. Motor Vehicle tax is an example of

A. Property Tax
B. Privilege Tax
C. Income Tax
D. Indirect Tax

10. Which is not an indirect tax?

A. Duties
B. Impost
C. Exercise tax
D. Personal Tax

11. When is the deadline for filling Annual income tax return?
A. April 15
B. May 25
C. January 30
D. March 31

12. Which is taxable item of income?

A. Increase in numbers of a herd animals
B. Compensation for personal injuries
C. Moral damages
D. Interest on moral damages

13. Which is not subject to income tax?

A. Donation
B. Sale of service
C. Sales of goods
D. Barter of goods

14. Which is specifically exempted from income taxation by virtue of legal exemption?
A. Minimum wage
B. Above minimum wage
C. Realized Gain
D. With multibillion Businesses

15. These are facilities or privileges such as entertainment, medical services or courtesy
discounts on purchases that are of relatively small value and are furnished by the
employer merely as means of promoting the health, goodwill, contentment, or efficiency of
his employees
A. Fringe benefits
B. Promotion benefits
C. De minimis benefits
D. Lateral transfer

16. Which of these concepts is not relevant to corporations?

A. Exclusions
B. Deductions
 C. Gross income
D. Personal Exemptions

17. Which is not an exempt domestic corporation?

A. Government agencies and instrumentalities

B. Non stock nonprofit educational institutions
C. ABS-CBN
D. Cooperatives

18. It is the proportional flax tax at a rate of 30% on taxable income?

A. Minimum Corporate Income Tax

B. Regular Corporate Income Tax
C. Compensation Tax
D. Donor’s Tax

19. What are allowable deductions against gross income?

A. Business expenses
B. Family support
C. Personal expenses by the taxpayer
D. Expenses of employment

20. Proportional regular income tax is applicable to

A. Corporate Taxpayers
B. Individual taxpayers
C. Compensation earners only
D. Individual in business only

II- PROBLEM SOLVING: Solve each problem (2points)

1. James received a total sum of 42,000 from his employer consisting of the following:
 P5,000.00 reimbursement for employer’s expenses paid by James
 P15,000.00 payment of James’ computer set purchased by the employer
 P22,000.00 monthly salary
James’ computer set cost him P12,000.00 compute the total return on capital which can be
subjected to income tax,.
a. P42,000.00 c. P25,000.00
b. P37,000.00 d. P22,000.00

2. Denver is a supervisor employee at Victoria Plaza. He had the following items during the
year:
 Denver was paid P800,000 salaries
 SSS, Pag-ibig, PHIC contribution worth P10,720
 Rice subsidy worth P30,000.00
 Uniform allowance P15,000.00
 Laundry allowance P4,480.00
Compute for income tax due for the year.
a. P 860,200.00 c. P131,548.00
b. P 230,728.00 d. P15,880.00
3. Archel is a very courageous employee at red doors htal. He had the following items during
the year:
 Monthly salary worth P 12,000.00
 Overtime amounted to P 65,000.00
 SSS, Pag-ibig, PHIC contribution worth P30,228
 Rice subsidy worth P6,000.00
 Uniform allowance P2,500.00
 Laundry allowance P3,480.00
Compute for income tax due for the year.
A. P 222,072.00 C. P24, 638.00
B. P 0 D. P43, 300.00

4. Marco works at Eastwest. He had the following items during the year:
 Monthly salary worth P 30,000.00
 Overtime amounted to P 35,000.00
 Late sums up to P 2,500.00
 SSS, Pag-ibig, PHIC contribution worth P67,220.00
 Rice subsidy worth P36,000.00
 Uniform allowance P6,500.00
 Laundry allowance P15,000.00
 Christmas gift P30,000.00
Compute for Taxable Gross Income for the year.
A. P 360,000.00 C. P24, 836.00
B. P 0 D. P374, 180.00

5. Henrick Ford, single, with TIN 123-854-330-000 works at Marco Polo Hotel. He live in
Brgy 19-B, Poblacion District, Davao City, 8000 Davao del Sur. He had the following items
during the year 2019:
 Monthly salary worth P 30,000.00
 Overtime amounted to P 35,000.00
 Late sums up to P 2,500.00
 SSS, Pag-ibig, PHIC contribution worth P67,220.00
 Rice subsidy worth P36,000.00
 Uniform allowance P6,500.00
 Laundry allowance P15,000.00
 Christmas gift P30,000.00
Compute for total tax due for the year.
A. P 360,000.00 C. P24, 836.00
B. P 0 D. P374, 180.00

6. Using problem #5 Compute how much is the allowable de minimis benefit not included to
taxable income.
A. P 87,500.00 C. P 0
B. P 38,600.00 D. P48, 900.00
 7. Using problem #5 Compute how much is the excess of de minimis benefit included to
taxable income.
A. P 87,500.00 C. P 0
B. P 38,600.00 D. P48, 900.00

8. GMA Corporation has a net income of P 1,200,000.00 in the Philippines and P 800,000.00
from abroad. Given that it is a domestic corporation, compute for Income tax due
A. P 360,000.00 C. P 600,000.00
B. P 200,000.00 D. P -0-

9. GMA Corporation has a net income of P 1,200,000.00 in the Philippines and P 800,000.00
from abroad. Given that it is a resident foreign corporation, compute for Income tax due

A. P 360,000.00 C. P 600,000.00
B. P 200,000.00 D. P -0-

10. ABS-CBN Corporation started operations in 2016 had the following results of operations
2018 2019 2020
Gross income P 3,500,000 P 5,000,000 P 7,000,000
Less: business expense 3,400,000 5,300,000 6,400,000
Net Income P 100,000 (P 300,000) P 600,000

What is the income tax due in 2019?

A. P 0 C. P 90,000
B. P60,000 D. P100,000
 III- Application: Filling out the form. For items 1-15, Using problem #5, Fill in the
information given and the total tax due to the form below: (fill only the red box)

2019 /

123 854 330 000 132

Ford, Henrick

Brgy 19-B, Poblacion District, Davao City, 8000 Davao Del Sur
8000