1 The quarterly corporate income tax is due
A. 30 day after the end of the first three quarter C. 60 day after the end of the first three quarter
B. 45 days after the end of the first three quarter D. April 15, August 15 and November 15 for the first to third quarter, respectively
2 A purely engaged in business individual taxpayer shall use
BIR Form 1701A B. BIR Form 1701
3 The following shall be considered as de minimis benefits not subject to income tax as well as withholding tax on compensation income of both managerial and
rank and file employees,except;
A. Monetized unused vacation and sick leave credits of private employees not exceeding 10 days during the year
B. Monetized value of vacation and leave credits paid to government officials and employees
C. Medical cash allowance to dependents of employees, not exceeding Php 1,500 per employee per semester of Php 250 per month
D.Rice subsidy of Php 2,000 or I sack of 50kg rice per month amounting to not more than Php 2,000
4 Mika is employed by Holy Cross Hospital as an ambulance driver with a salary of P20,000 a month. In addition, he is given free meals with a monthly value of P4,500 and
living quarters within the hospital compound with an equivalent value of P2,000 a month. The monthly taxable compensation income of Mika is _.
A. P20,000 C. P24,500
B. P22,500 D. P26,500
5 Income from dealings in property (real, personal, or mixed) is the gain or loss derived.
A. Only from cash sale of property C. From sale and lease of property
B. From cash and gratuitous receipts of property D. Only from sale of property
6 Which of the following dealings in property is subject to normal income tax?
A. Sale of ordinary assets C. Sale of shares in a domestic corporation sold outside the local stock exchanged
B. Sale of real property, located in the Philippines, classified as capital asset D. All of the choices
7 Political campaign contribution are not deductible from gross income
A. If the candidates supported wins the election because of possible corruption
B. since such amounts are not considered as income of the candidate to whom given
C. since they do not help earn the income from which they are to be deducted
D. If they are not reported to the Commission on Elections
Courageous Corporation, a dealer in sugar under the brand Mr. Perfectly Refined Sugar, has gross sales of P1,400,000,000 with cost of sales of
P560,000,000 and allowable deductions of P150,000,000 for calendar year 2023. Courageous Corporation began operating in 1989. Courageous Corporation's total assets
of P180,000,000 includes the land and building in which the business is situated, amounting to P50,000,000 and P25,000,000, respectively.
Applying CREATE Act, how much is Courageous Corporation's income tax due in 2023?
A. 138,000,000
B. 172,500,000
C. 189,750,000
8 D. 193,500,000
Identify a false statement:
a. If the fringe benefit is granted or furnished by the employer in property other than money but ownership is not transferred to the employee, the value of the fringe benefit is equal to to the employee,
the value of the fringe benefit is equal to the depreciation value of the property.
b. If the employer leases a residential property for the use of his employee and the said property is the usual place of residence of the employee, the monetary value of the fringe benefit
shall be the amount of rental paid by the employer.
c. If the employer owns a residential property and the same is assigned for the use of his employee as his usual place of residence, the monetary value of the fringe benefit shall be fifty per cent
(50%) of the value of the benefit.
9 d. If the employer purchases a residential property and transfers ownership thereof in the name of the employee, the monetary value of the fringe benefit shall be the entire value of the benefit.
Ms. Leni operates a convenience store while she offers bookkeeping services to her clients. In 2018, her gross sales amounted to P800,000.00, in addition to her
receipts from bookkeeping services of P300,000.00. She already signified her intention to be taxed at 8% income tax rate in her 1st quarter return. How much is the income tax liability for the yea?
Will she qualify to be taxed at 8%?
A. Yes, because her total gross sales and/or gross receipts and other non-operating income do not exceed the VAT threshold and she signifies her intention to be taxed
at 8% income tax rate in her first quarter return.
B. No, because while her total gross sales and/or gross receipts and other non-operating income do not exceed the VAT threshold and she signifies her
intention to be taxed at 8% income tax rate in her first quarter return, her income comes from different sources.
C. Yes, because individual taxpayers are always given the option to be taxed at 8% income tax rate regardless of their total gross sales and/or gross receipts
And other non-operating income.
10 D. No, because individual taxpayers whose total gross sales and/or gross receipts and other non-operating income are always subject to tax under Section 24 (A).
How much is the income tax due?
A. P88,000 C. P64,000
11 B. P68,000 D. P10,000
Assuming Ms. Leni above, failed to signify her intention to be taxed at 8% income tax rate on gross sales in her 1st Quarter Income Tax Return, and she incurred cost
of sales and operating expenses amounting to P600,000.00 and P200,000.00, respectively, or a total of P800,000.00. How much is the income tax?
A. P88,000 C. P64,000
12 B. P68,000 D. P10,000
Determine the deductible loss.
a. Loss incurred in exchanging property to obtain control of a corporation
b. Loss incurred in exchanging properties with a corporation after obtaining control over said corporation
c. Calamity loss on uninsured property
13 d. Bad debts from a sister company
As a company accountant, you are being consulted by the Chief Executive Officer (CEO) as to whether the following items of expenses are
deductible to the company or not.
Which of the following items can be claimed as deduction from gross income?
A. Tuition fees and other expenses of the taxpayer's children.
B. Replacement of the roof of the office building.
C. Premiums paid in insuring the life of the Corporate President, appointing the corporation as the beneficiary of the policy.
14 D. Premiums paid on a life insurance policy of a rank-and-file employee with the employee's children as the appointed beneficiary.
15 WISHING YOU A SUCCESSFUL CAREER FILLED WITH GROWTH AND ACHIEVEMENTS! LOVE YAH!
