1. Three years after acquisition, a domestic corporation disposed of its real property classified as capital asset for P3,000,000 when its fair value was P3,300,000. It was acquired for P2,800,000 when its fair value was P2,900,000. How much is the reportable net capital gain subject to regular income tax?

a. 300,000 b. 200,000 c. 100,000 2. An individual income taxpayer reported the following: Capital loss current year: P50,000; Capital gain current year: P200,000; and net capital loss last year: P70,000. If the net income last year was P40,000, how much is the deductible capital loss against capital gain in the current year?

a. 90,000 b. 50,000 c. 120,000

3. A private employee has the following remuneration for the year 2019:

Gross salaries, net of mandatory contributions P315,000

Fixed Allowances P35,000

13th month pay P28,000

Christmas Gift P5,000

Laundry Allowance P8,000

What is the total exempt de menimis benefit?

a. 8,600 b. 13,000 c. 3,000

4. A private employee has the following remuneration for the year 2019:

Gross salaries, net of mandatory contributions P315,000

Fixed Allowances P35,000

13th month pay P28,000

Christmas Gift P5,000

Laundry Allowance P8,000

What is the taxable compensation income?

a. 315,000 b. 350,000 c. 343,000

5. C, Inc. owns a residential property it acquired for P2,000,000. It allowed it supervisory employee to use the property for ten years for free. How much is the quarterly fringe benefit tax if the employee is a non-resident alien?

a. 16,666.67 b. 4,1667.67 c. 8,333.33

6. After five years of use, Pedro disposed of his malfunctioning factory machinery at a loss of P200,000. It was acquired for P1,000,000 and depreciated over 20 years. How much is the reportable net capital loss?

a. 200,000 b. 0 c. 550,000

7. Generous, Inc. paid P1,1000,000 compensation to its admin employees net of P300,000 mandatory contributions and P1000,000 withholding tax on compensation. It also paid P500,000 employer share on the mandatory contributions. How much is the deductible salaries and wages?

a. 1,600,000 b. 1,500,00 c. 2,000,000

8. A taxpayer had the following dealings in properties:

Short-term capital gain P200,000

Long-term capital gain P100,000

Short-term Ordinary Gain P50,000

Long-Term Ordinary Gain - P100,000

Short-term capital loss P100,000

Long-Term Capital Loss P200,000

Short-Term Ordinary Loss P100,000

Long-Term Ordinary Loss P160,000

a. 200,000; 260,000 b. 200,000;275,000 c. 275,000; 320,000 d. 450,000; 260,000

9: An individual has the following dealings in a property for the year 2019:

Short-term capital gain P300,000

Short-Term Ordinary Loss P100,000

Long-Term Capital Loss P800,000

Compute the reportable net capital gain

a. (100,000) b. (500,000) c. 300,000

10. A private employee has the following remuneration for the year 2019:

Gross salaries, net of mandatory contributions P315,000

Fixed Allowances P35,000

13th month pay P28,000

Christmas Gift P5,000

Laundry Allowance P8,000

What is the exempt benefit?

a. 36,600 b. 41,000 c. 36,000

11. A taxpayer had the following dealings in properties:

Short-term capital gain P200,000

Long-term capital gain P100,000

Short-term Ordinary Gain P50,000

Long-Term Ordinary Gain - P100,000

Short-term capital loss P100,000

Long-Term Capital Loss P200,000

Short-Term Ordinary Loss P100,000

Long-Term Ordinary Loss P160,000

Assuming that the taxpayer is a corporation, compute respectively the total items of gross income and the total items of deductions from gross income.

a. 500,000; 570,000 b. 250,000;320,000 c. 150,000;260,000 d. 250,000; 570,000

12: A taxpayer incurred P400,000 interest expense and P120,000 interest income on time deposit. Compute the deductible interest expense.

a. 360,000 b. 400,000 c. 280,000

Question 13

Assume the following:

2019 2020

Past Service Cost P 400,000

Current Service Cost 200,000 300,000

Annual Contribution to pension fund 150,000 850,000

How much is the 2020 deductible pension expense?

a. 340,000 b. 390,000 c, 400,000

Question 14

A taxpayer paid the following:

Percentage Tax P 21,000

Transportation Expense 50,000

Entertainment, Amusement, and Recreation 20,000

Rental of Shop 100,000

Vet Fees on Pet Dog 25,000

Spa of Kasambahay 10,000

Salaries and wages of employee, net of P20,000 mandatory contribution 180,000

Donation to government school 20,000

Assume a gross sales of P700,000 for the year, how much is the allowable deductions from gross income?

a. 407,050 b. 394,500 c. 411,500

Please use the Philippine tax law