1A 11 B 21 C

2C 12 C 22 D
3C 13 D 23 B
4A 14 C 24 D
5A 15 D 25 B
6A 16 D 26 B
7D 17 A 27 E
8A 18 BONUS 28 C
9D 19 BONUS 29 A
10 B 20 E 30 F

Problems
36 D 46 23,100.00 56 139,500.00
37 D 47 85,400.00 57 600.00
38 D 48 6,292,000.00 58 37,600.00
39 C 49 6,000,000.00 59 116,400.00
40 E 50 62,900.00 60 156,400.00
41 D 51 zero 61 1,592,211.69
42 B 52 69,000.00 62 120000
43 C 53 10,000.00 63 110500
44 D 54 229,411.76 64 1,817,591.51
45 D 55 24,411.76 65 1,713,056.36
31 C Theories 1pt each 35
32 D Problems
33 B #s 36 to 45 2pts each 20
34 D #s46 to 70 3 pts each 75
35 D Total 130

66 25,582,718
67 576,000
68 1,893,750
69 zero
70 255,807.00
36 Salaries & Wages 681,200.00
Tax Withholding 134,800.00
Total fixed monthly allowance 60,000.00
Net Compensation Income 876,000.00

37 Acquisition Cost 3,000,000.00

Useful life 20.00
Annual Depreciation 150,000.00
divide 12 months 12
Monthly depreciation 12,500.00
Monetary Value 6,250.00

38 Monetary Value 6,250.00

Divide 65% 65%
Grossed up monetary value 9,615.38
Multiply tax rate 35%
Fringe benefit Tax 3,365.38

39 Monetary Value 800,000.00

Divide 65% 65%
Grossed up monetary value 1,230,769.23

40 zero the fringe benefit tax will be paid by the employer

41 rent income 1,200,000.00

Advance rental for 2018 2,400,000.00
Real Property Tax 30,000.00
Income 3,630,000.00

42 Gross Income 5,000,000.00

Salaries Expense (950,000.00)
Fringe benefits (436,000.00)
Fringe Benefit Tax (19,384.62) EAR
representation Expense (40,000.00) Limit 40,000.00
Rent Expense (120,000.00) Actual 100000
Charitable contributions (343,461.54)
Net Taxable Income 3,091,153.85 Donation
Net taxable in 3,434,615.38
Limit 343,461.54
Actual 500000

43 Philippines 1,000,000.00
Bangladesh 600,000.00
Russia 400,000.00
Net Taxable Income 2,000,000.00
 Tax Rate 30%
Philippine Income Tax Due 600,000.00
Tax Credit
Foreign Tax (300,000.00)
1st 3 quarters (110,000.00)
Tax Still Due 190,000.00

Limit: All Foreign

300,000.00

Limit: Bangladesh
180,000.00 actual 250000
Russia
120,000.00 actual 120000
300,000.00

Limit; Actual 370000

44 2012 2013 2014 2015

RCIT 25,000.00 130,000.00 200,000.00 -

MCIT 100,000.00 150,000.00 190,000.00 300,000.00

Tax Due 100,000.00 150,000.00 200,000.00 300,000.00

less excess MCIT carry over (75,000.00)
(20,000.00)
Tax payable 100,000.00 150,000.00 105,000.00 300,000.00

45 Nil (illegal expense)

 2016
100,000.00

50,000.00

100,000.00
(100,000.00)

-
46 Basic Gross Salary
Cost of Living Allowance
Social Security System Contribution
Home Development Mutual Fund Contribution
Philippine Health Insurance Corporation Contribution
Personal Equity Retirement Account Contribution
Net Taxable Compensation

Tax Due
Tax Credit
from PERA
withholding tax
Income Tax Refundable

47 Sale of goods
Sales discount and allowances
Sales returns
Cost of Goods Sold
Gross Income
Operating Expenses
Interest Expense
Other Income
Interest income from promissory note
rent income
Net Taxable Income
Tax Rate
Regular Income Tax Due

Minimum Corporate Income Tax

Less; Tax credit
Tax Still due

48 Interest income from savings deposit at BPI

Interest income from FCDU
Interest income from EFCDU
Dividends from domestic corporation
Royalty from e-books
Royalty from literary works
Prize from locally held sea games
Awards as most outstanding citizen
Winnings in PCSO 6/55
Winnings in raffle at department store
 Tax informer's reward
Tax free covenant bonds

49 Cost of old residence

Partial cost attributable to sale of old principal residence

Additional cost
Cost of new principal residence

50 Monetized unused sick leave

Excess 13th month pay and other benefits

51
Gross Sales
Cost of Sales
Gross Income
Other income
Dividend - RFC
Interest Income on Notes
Capital Gain
Capital Loss
Ordinary Loss

NOLCO
Net Taxable Income

Tax Due

53
Salary and allowances
Teaching salary
Total

Tax Due
Tax credit
Tax still due
 540,000.00 13th month pay 45,000.00
240,000.00 14th month pay 45,000.00
(24,000.00) Total 90,000.00
(1,200.00) Exempt (90,000.00)
(2,400.00) Excess 13th month pay and other benefits -
(100,000.00)
652,400.00

93,100.00

(5,000.00)
(65,000.00)
23,100.00

6,000,000.00
(300,000.00)
(200,000.00)
(2,000,000.00)
3,500,000.00
(4,000,000.00)
(85,150.00)

200,000.00
570,000.00
184,850.00

55,455.00

85,400.00
(60,000.00)
25,400.00

25,000.00 5,000.00 20,000.00

50,000.00 7,500.00 42,500.00
45,000.00 4,500.00 40,500.00
10,000.00 1,000.00 9,000.00
22,500.00 4,500.00 18,000.00
20,000.00 2,000.00 18,000.00
40,000.00 - 40,000.00
15,000.00 - 15,000.00
6,520,000.00 1,304,000.00 5,216,000.00
35,000.00 7,000.00 28,000.00
 900,000.00 90,000.00 810,000.00
50,000.00 15,000.00 35,000.00
6,292,000.00

3,000,000.00

2,250,000.00
3,750,000.00
6,000,000.00

15,000.00 13th month pay 60000

47,900.00 Excess De minimis 77,900.00
62,900.00 Total 137900
Exempt 90000
Excess 13th month pay and other benefits 47900

2016 2017 2018 2019

3,300,000.00 2,640,000.00 3,000,000.00 5,000,000.00
2,400,000.00 1,200,000.00 2,000,000.00 1,600,000.00
900,000.00 1,440,000.00 1,000,000.00 3,400,000.00

140,000.00 - 100,000.00 -
28,000.00 16,400.00 50,000.00 35,000.00
- 13,000.00 - 15,000.00
- - - -
(1,475,000.00) (1,115,000.00) (1,500,000.00) (3,300,000.00)
(407,000.00) 354,400.00 (350,000.00) 150,000.00

(354,400.00) (1,500,000.00)
(407,000.00) 708,800.00 (350,000.00) 1,650,000.00

zero zero zero 69,000.00

Husband Wife
752,000.00
68,000.00
752,000.00 68,000.00

118,000.00 -
-108000
10,000.00
De Minimis Benefits Exempt Excess
Uniform and Clothing allowance 10,000.00 6000 4,000.00
Productivity Bonus 20,000.00 0 20,000.00
Total 30,000.00 6,000.00
 Exempt Excess
Monetized un 30,000.00 25,000.00 5,000.00
Rice Subsidy 35,000.00 24,000.00 11,000.00
Uniform allo 3,000.00 3,000.00 -
Achievement 32,000.00 10,000.00 22,000.00
Anniversary G 18,500.00 5,000.00 13,500.00
Medical Assis 22,350.00 10,000.00 12,350.00
Laundry Allo 5,000.00 3,600.00 1,400.00
Productivity 12,650.00 - 12,650.00
Total 77,900.00
Compensation 600,000.00
Hazard Pay 2,000.00
Holiday Pay 3,500.00
Excess 13th month pay and other ben 156,400.00
Taxable Compensation 761,900.00

Sales 5,555,555.56
Revenue 2,448,979.59
Cost of Goods Sold (1,200,000.00)
Cost of Services (850,000.00)
Gross Income 5,954,535.15

Regular Itemized Deduction

Expenses 500,000.00
Interest Expense 90,294.12
Tax Expense 350,650.00
Pension Expense 39,000.00
Fire Loss 80,000.00
Salary of PWD Worker 130,000.00
Salary of Senior Citizen 220,000.00
representation expense 52,267.57
Training Expense for Rank & File 90,000.00
Donations to church 40,000.00
Total Regular Itemized Deduction 1,592,211.69

Special Itemized Deduction

Discount to senior citizen 120,000.00
Salary of PWD worker 32,500.00
Salary of Senior Citizen 33,000.00
Training Expense for Rank & File 45,000.00
Total Special Itemized Deduction 230,500.00

Other Income
Dividends from resident foreign corp 80,000.00
Interest from loan 35,000.00
Japan Sweepstakes winnings 1,000,000.00
Recovery of bad debts 40,000.00
Ranson Money 100,000.00
Total 1,255,000.00

Net Taxable Income 6,148,723.46

Tax Due 1,817,591.51

Less: Tax credit
Sale of Goods 55,555.56
Sale of Services 48,979.59
Tax Still Due 1,713,056.36
13th month pay and other benefits
Christmas Bonus 10,000.00
13th month pay 40,000.00
Midyear Bonus 20,000.00
Other Fringe Benefits 60,000.00
Excess De Minimis 116,400.00
Total 13th month and other benefits 246,400.00
Exempt (90,000.00)
Excess 13th month pay and other benefits 156,400.00

Net Taxable income before charitable contributi 6,188,723.46

Limit 618,872.35
Actual 40,000.00

EAR
Actual
Sale of Goods 5,555,555.56 166,572.24

Sale of Services 2,448,979.59 73,427.76

8,004,535.15 240,000.00

Final Tax
Dividends from Domestic Corporation 200,000.00 20,000.00
Interest from bank deposit, FC 29,411.76 4,411.76
Final Tax Due 229,411.76 24,411.76

Stock Transaction Tax

Sale of Stock thru PSE 100,000.00 600.00

Capital Gains Tax

Gain from Sale of Domestic Shares directly to bu 130,000.00 19,500.00
Sale of Land 2,000,000.00 120,000.00
Capital Gains Tax Due 139,500.00
De Minimis Benefits Exempt Excess
Uniform Allowance 8,000.00 6,000.00 2,000.00
Meal Allowance 100,000.00 18,000.00 82,000.00
Productivity Incentive 15,000.00 - 15,000.00
Laundry Allowance 7,000.00 3,600.00 3,400.00
Medical Allowance 12,000.00 10,000.00 2,000.00
Employee Achievement Award 12,000.00 - 12,000.00
Total 154,000.00 37,600.00 116,400.00

Limit
27,777.78

24,489.80
Sales, net of withholding 15,525,000.00
Cost of Goods Sold 6,210,000.00
Gross Income 9,315,000.00
Rent income, net of withholding 1,850,000.00
Total 11,165,000.00

Other Income
Dividends received from a foreign corporation 850,350.00
Interest income from advances to employees 25,000.00
Gain on sale of equipment used in producing doughnuts 750,000.00
Total 1,625,350.00

Regular Itemized Deduction

Written of accounts receivables 275,000.00
Salaries of employees:
Regular Employees 3,500,000.00
Minimum Wage Earners 5,450,000.00
Senior Citizens 1,850,000.00
Persons with Disabilities 975,000.00
Fringe Benefits received by Managers and Supervisors 3,600,000.00
Fringe Benefits received by Rank and File 1,850,250.00
15% manager’s discounts through factory store 300,000.00
Depreciation expense 950,000.00
Administrative Expenses 2,335,500.00
Interest Expense 215,500.00
Cost incurred up to date for construction of the following:
Comfort Room Exclusively for PWDs (Completed) 25,000.00
Improvements attached for PWDs in General Comfort Rooms 20,000.00
Breastfeeding Stations (Completed) 100,000.00
Donations:
Public Elementary School 2,500,000.00
Accredited Charitable Institution 1,200,000.00
Non-Accredited Charitable Institution
Non-Accredited Scientific Centre (563,532.50)
Government Agency for Public Purpose
Foreign Charity Foundation in accordance with a treaty 1,000,000.00
Total regular itemized deduction 25,582,717.50

Special Itemized Deductions-NIRC

25% discounts to senior citizens through factory store 276,000.00
30% discounts to PWDs through factory store 300,000.00
Total Special Itemized Deductions-NIRC 576,000.00

Special Itemized Deductions-Special Laws

Senior Citizens 277,500.00
Persons with Disabilities 243,750.00
Comfort Room Exclusively for PWDs (Completed) 12,500.00
Improvements attached for PWDs in General Comfort Rooms 10,000.00
Breastfeeding Stations (Completed) 100,000.00
Public Elementary School 1,250,000.00
Total Special Itemized Deductions- Special Laws 1,893,750.00

Net Operating Loss Carry-over:

2014 650,000.00
2015 520,000.00
2016 225,000.00
Total NOLCO 1,395,000.00

Net Taxable Income (15,262,117.50)

RCIT zero

MCIT 255,807.00
Interest from bank deposit, net of tax 150,000.00

Non-Accredited Charitable Institution 1,500,000

Non-Accredited Scientific Centre 2,850,000
Government Agency for Public Purpose 1,650,000
Actual 6,000,000

Limit
Net Taxable Income before charitable contr -11,270,650
(563,532.50)