During 2019 taxable year, First Metro Pacific was able to persuade Francis tojointhe company as its Asst. Vice-President for Finance which included a car plan worth P3,000,000in its compensation package. First Metro purchased the vehicle and registered the same in favor of Francis. Assuming further that Francis is a non-resident alien not engage in trade or business, howmuch, is the fringe benefit tax?

a.P592,412

b.P1,411,765

c.P1,615,385

d.P1,000,000

17.Based on the immediately preceding number, but assuming First Metro is an offshore banking unit, how much is the fringe benefit tax?

a.P592,412

b.P1,411,765

c.P1,615,385

d.P1,000,000

18.For numbers 18-20.The following data were taken fromDe la Cruz(single), holding managerial position for 2019 taxable year:

Gross salaries @ P50,000 per month

600,000.00

SSS contributions

12,000.00

Philhealthcontributions

7,200.00

Pag-ibigcontributions

4,800.00

Union dues

3,000.00

Withholding tax on compensation income

73,250.00

Allowances, subject to liquidation

100,000.00

Gasoline allowances, subject to liquidation

17,000.00

13th month pay

50,000.00

Deminimisbenefits

12,000.00

The taxable compensation income subject to graduated rate under Section 24(A) of the tax code is:

a.P465,000

b.P576,000

c.P573,000

d.P600,000

19.Based on the previous number, the fringe benefit tax is:

a.P0

b.P8,000

c.P53,846

d.P47,059

20.The total income tax expense of De la Crus is:

a.P127096

b.P141,000

c.P170,760

d.P179,400

21.The excess of the deminimisbenefits over their respective ceilings prescribed under the regulations shall be

a.Considered as part of other benefits subject to tax only on the excess over the P90,000ceiling.

b.Not be considered in determining the P90,000ceiling of other benefits excluded from the gross income under the Code, as amended.

c.Both "a" and "b"

d.Neither "a" nor "b"

22.Graceis a purely S.E.P. using 8% tax rate whose gross sales/receipts and other non-operating income exceeded the revised VAT threshold of P3,000,000during the year.

During the year, she signified her intention to be taxed at 8% income tax rate on gross sales in his 1stquarter income tax return. Her gross sales during the year exceeded the VAT threshold as follows:

Q1

Q2

Q3

Q4

(8% tax)

(8% tax)

(8% tax)

(Annual Graduated Tax)

Sales

465,000.00

450,000.00

2,000,000.00

3,150,000.00

Cost of sales

(279,000.00)

(270,000.00)

(120,000.00)

(1,323,000.00)

Gross Income

186,000.00

180,000.00

1,880,000.00

1,827,000.00

Operating expenses

(120,000.00)

(120,000.00)

(518,400.00)

(756,000.00)

Net taxable income

66,000.00

60,000.00

1,361,600.00

1,071,000.00

How much isGracia'sannual income tax payable?

a.P289,500

b.P509,200

c.P120,380.00

d.P292,000

23.Which of the following income of an individual taxpayer is subject to final tax?

a.P10,000prize in Manila won by a resident citizen.

b.Dividend received by a resident citizen from a resident foreign corporation.

c.Shares in the net income of a general professional partnership received by a resident citizen.

d.Dividend received by a non-resident alien from a domestic corporation.

24.GeraldBarrettoreceived royalty fee from Viva Records Corporation, a domestic corporation for his musical compositions under the album "Whatever itTakes", James is an American composer and has never set foot in the Philippines. The royalty fee shall be subject to:

a.15% FWT

b.20% FWT

c.25% FWT

d.5%-32% graduated tax rate

25.Which of the following is included in the income of the estate of a decedent?

a.Income received by the estate of a deceased person during the period of administrationor settlement of the estate.

b.Excess of selling price over the appraised value placed upon the property at the time of death, where the property was sold after the settlement of the estate.

c.Appreciation in the value of property passed to the executor or administrator upon death of decedent.

d.Delivery of property in kind to legatee or devisee.

For numbers26-28

On December 1, 2018, Mr.A,a resident citizen taxpayer died leaving various property worth P15,000,000. The property is an income producing property primarily through rentals. The net income from rentals in 2018 amounted to P500,000. A "last will and testament" was executed by the decedentprior to his death assigning Alexas the executor. In 2019, (while under administration), the estate earned P3,562,500 (net of 5% creditable withholding tax on rent) and incurred expenditures necessary to carry out the operations ofP2,400,000.

Alsoduring 2019, Mr. B(one of the lawful heirs) received P150,000fromthe income of the estate. Mr. B's other income and expenses were as follows:

Compensation incomeP 400,000

Business incomeP750,000

Business expensesP300,000

26.Assume the estate is still under administration, how much is the taxable income of the estate in 2019?

a.P1,350,000

b.P2,800,000

c.P1,500,000

d.P1,200,000

27.How much is the taxable income of Mr.Bin 2019?

a.P850,000

b.P1,000,000

c.P1,900,000

d.None of the above

28.How much is the income tax payable of Mr.B?

a.P295,000

b.P145,000

c.P190,000

d.P0

29.A domestic corporation, already in its 5thyearof operation as of 2018, has the following data:

2018

2019

Sales

1,700,000

2,300,000

Cost of Sales

1,050,000

1,425,000

Operating Expenses

675,000

480,000

The income tax payable in 2018 was:

a.P13,000

b.P10,500

c.P35,000

d.P0

30.The income tax payable in 2019 was:

e.P111,000

f.P17.500

g.P98,000

h.P0