Multiple Choice, Answer Only. Thankyou

Chapter 7 - Exclusions from Gross Income EXERCISE 7-6. MULTIPLE CHOICE QUESTIONS 1. After working for 30 years. Rufino retired from his employment on 233 December 31, 2018 as an accountant of Snail Corporation. As a consequence of his retirement due to old age, he received the following from his employer Salary for December, 2018 P 25,000 13th month pay 25,000 Cash gift 2.500 Retirement pay 750,000 Terminal leave pay 120,000 Longevity pay 30,000 Rice allowance per month 2,000 Clothing allowance 8,000 20,000 Proceeds of life insurance which have matured (premiums paid, P200,000) 300,000 If the company maintains a private benefit plan for its employees, the income subject to tax of Rufino is: a. 352,500 b. 627,500 C. 404,500 d. 400,000 Loyalty award 2. Basic salary (minimum wage) P 80,000 Overtime pay 12,000 Holiday pay 6,000 Night shift differential pay 3,000 Hazard pay 12,000 How much is subject to tax? a. 92,000 b. None c. 21,000 d. 113,000 3. Basic salary (government employee) P180,000 Personnel Economic Relief Allowance (PERA) 36,000 24,000 Additional Compensation Allowance (ACA) Total monthly contributions: Employer Employee GSIS premium P1,350.00 P1,800.00 Philhealth 412.50 412.50 Pag-Ibig 300.00 300.00 How much is the taxable compensation income? d. a deduction from income tax due of any amount paid to a foreign 7. The proceeds of insurance taken by a corporation on the life of the d. Partly exempt, partly taxable INCOME TAXATION (With Tax Principl C None d. 149,850 a. 173,850 b. 177,488 4 exempt the retiring employee to an income tax on his retirement benefit? Private Years in Retirement Benefit Plan? Service Case 1 Yes 12 Case 2 Yes Case 3 Case 4 9 15 11 Age 40 60 65 55 No Yes a. Case 1 only a Cases 1 and 2 C. Cases 2, 3 and 4 d. Case 4 only 5. Which of the following benefits/gratuity is taxable? a. Lifetime monthly gratuity of P75,000 to a medal of valor awardee. b. The terminal leave pay consisting of the accumulated vacation and sick leave credits of an employee of the Supreme Court. c. Retirement benefit per Collective Bargaining Agreement although the early retirement is against the will of the employee. d. Separation or severance pay received in the form of residential lots as a consequence of continued losses. 6. A tax exclusion is defined as an item or amount which the law allows to be deducted from gross income in order to arrive at net income. the grant of immunity to particular persons or corporations from a tax which others within the same taxing district are obliged to pay income received but which is not taxable as it is exempted by law or treaty C country, subject to limitation President to indemnify it against loss in case of his death is: a. Exempt from income tax C b. Subject to final tax Part of taxable income