Chapter Exercises - Individual Determination of Income Tax Due/Payable 2-3. 1. Pedro is a resident citizen,...

Transcribed Image Text:

Chapter Exercises - Individual Determination of Income Tax Due/Payable 2-3. 1. Pedro is a resident citizen, earning purely compensation income as follows for the taxable year: a. P200,000 b. P250,000 C. P800,000 d. P2,800,000 2. Juan is a resident citizen, earning purely business income for the taxable year: Gross sales Cost of sales Operating expenses Creditable withholding taxes P2,800,000 1,200,000 650,000 80,000 3. Use the same data in #2 but assume that Juan opted to be taxed using 8% income tax rate. 4. Juan is a resident citizen, earning purely business income for the taxable year: Gross sales Cost of sales Operating expenses Rental income (net of CWT) Other creditable withholding taxes P2,800,000 1,200,000 650,000 380,000 80,000 5. Can Juan choose to be taxed at 8% instead of the graduated income tax rate in #4? If yes, how much is his income tax payable for the year? 6. Ana is a practicing professional with the following data for the taxable year: Gross receipts Cost of direct services Other operating expenses P4,000,000 1,800,000 825,000 7. Can Ana choose to be taxed at 8% instead of the graduated income tax rate in #6? If yes, how much is her income tax payable for the year? Chapter Exercises - Individual Determination of Income Tax Due/Payable 2-3. 1. Pedro is a resident citizen, earning purely compensation income as follows for the taxable year: a. P200,000 b. P250,000 C. P800,000 d. P2,800,000 2. Juan is a resident citizen, earning purely business income for the taxable year: Gross sales Cost of sales Operating expenses Creditable withholding taxes P2,800,000 1,200,000 650,000 80,000 3. Use the same data in #2 but assume that Juan opted to be taxed using 8% income tax rate. 4. Juan is a resident citizen, earning purely business income for the taxable year: Gross sales Cost of sales Operating expenses Rental income (net of CWT) Other creditable withholding taxes P2,800,000 1,200,000 650,000 380,000 80,000 5. Can Juan choose to be taxed at 8% instead of the graduated income tax rate in #4? If yes, how much is his income tax payable for the year? 6. Ana is a practicing professional with the following data for the taxable year: Gross receipts Cost of direct services Other operating expenses P4,000,000 1,800,000 825,000 7. Can Ana choose to be taxed at 8% instead of the graduated income tax rate in #6? If yes, how much is her income tax payable for the year?