PROBLEM 1

You are engaged in a small business. You signified your intention to be taxed at 8% income tax rate on gross receipts in your 1^st Quarter Income Tax Return for the year 2019. The following are the data on gross receipts, cost of services and operating expenses.

1^st Quarter 2^nd Quarter 3^rd Quarter 4^th Quarter

Gross Receipts P 400,000 P 400,000 P 750,000 P 1,500,000

Less: Cost of Service 75,000 150,000 400,000 1,000,000

Gross Income 325,000 250,000 350,000 500,000

Less: Operating Exp. 50,000 70,000 230,000 270,000

Taxable Income 275,000 180,000 120,000 230,000

Required:

1.Compute for the income tax payable for the 1^st three quarters and for the annual income tax.

2.Please use BIR Form 1701Q for the 1^st three quarters and 1701 for the annual income tax.

3.Please use the following for the general information.

TIN:489-203-895

Taxpayer's Name:Your Name (Observe proper filling out of name)

Registered Address:Your Address

RDO Code:113

Date of Birth:Your Birthday

Email Address:Your Address

Citizenship:Filipino