Uusialements 'a' and "b" d. Neither "a" nor "b" 595 Exercises Special Topics Use the following data for the next two (2) questions. Mabuhay Services Corporation (MSC) provides ovides 20% discount to senior citizens. It recorded the following during the year. Customers Senior Citizen Total Regular Receipts 1.000.000 P9,000,000 P1,000,000 P8,000,000 Cost of services 5,000,000 Other deductible expenses 2,000,000 22. The amount of gross receipts to be reported is a. P1,000,000 c. P9,000,000 b. P1,250,000 d. P9,250,000 23. The regular and special itemized deductions deductible from gross Income of MSC is: a. P2,000,000 c. P5,250,000 b. P2,250,000 d. P7,000,000 24. The taxable net income of MSC is: a. P750,000 c. P1.750,000 b. P1,000,000 d. P2,000,000 25. Mabisa Drugs Incorporation had the following during the year: Customers Senior Regular Citizen Total Gross Sales P8,000,000 P2,000,000 P10,000,000 Cost of Sales 5,000,000 1,000,000 6,000,000 Other deductible expenses 2,000,000 Mabisa adopts a policy of giving senior citizens 25% discount. As a result, it granted P500,000 total senior citizens' discount during the year, 26. The amount of gross sales to be reported is a. P8,000,000 c. P9,600,000 b. P9,500,000 d. P10,000,000 The amount of other deductible expenses to be reported is a. P400,000 c. P2,400,000 b. P500,000 d. P2,500,000 28. The taxable net income is: a. P1,500,000 c. P1,800,000 b. P1,600,000 d. P2,000,000 596 Exercises - Special Topics 596 Exercises - Special Topics 29 Bobods Corporation employs both regular and senior citizen employees and pald the following compensation: Rogular employees P800,000 Senior citizen employees: With salary grade above poverty level 200,000 With salary grade below poverty level 100,000 The deductible compensation expense is: a. P1,100,000 c. P1,120,000 b. P1,115,000 d. P1,145,000 30. Using the above information, except that 20% of the regular employees are persons with disability receiving a total compensation of P160,000, the deductible compensation expense of the corporation is a. P1,152,000 c. P1,178,000 b. P1,155,000 d. P1,192,000 31. Statement 1: If a taxpayer, classified as PWD, is unable to make his own return, the return may be made by his duly authorized agent or representative or by the guardian or other person charged with the care of his person or property. Statement 2: The principal (PWD) and his representative or guardian shall assume the responsibility of making the return and incurring penalties provided for erroneous, false, fraudulent returns. Statement 3: The privilege in statement 1 and transfer of responsibility in statement 2 is likewise available to a senior citizen taxpayer. a. Only statement 1 is correct b. Only statement 2 is correct c. Only statement 3 is incorrect d. None of the statements is correct 32. Statement 1: While the 20% senior citizen discount and vat exemption shall not apply to "children's meals" as these are primarily prepared and intentionally marketed for children, if the PWD is a child, the 20% PWD discount will be applicable as long as it is for his personal consumption. Statement 2: The 20% discount on purchase of food and drinks, beverages, dessert and other consumable items served by establishments includes valuo meals and other similar food counters, fast food, cooked food and short orders including take outs. a. Statements 1 & 2 are false b. Statement 1 Is true but statement 2 is false c. Statement 1 Is false but statement 2 is true d. Statements 1 and 2 are true 597 Exercises - Special Toxic Statement 1: Any donation, bquest, subsidy or financial aid which mannaned in the rehabilitation 596 Exercises - Special Topics 29 Bobods Corporation employs both regular and senior citizen employees and pald the following compensation: Rogular employees P800,000 Senior citizen employees: With salary grade above poverty level 200,000 With salary grade below poverty level 100,000 The deductible compensation expense is: a. P1,100,000 c. P1,120,000 b. P1,115,000 d. P1,145,000 30. Using the above information, except that 20% of the regular employees are persons with disability receiving a total compensation of P160,000, the deductible compensation expense of the corporation is a. P1,152,000 c. P1,178,000 b. P1,155,000 d. P1,192,000 31. Statement 1: If a taxpayer, classified as PWD, is unable to make his own return, the return may be made by his duly authorized agent or representative or by the guardian or other person charged with the care of his person or property. Statement 2: The principal (PWD) and his representative or guardian shall assume the responsibility of making the return and incurring penalties provided for erroneous, false, fraudulent returns. Statement 3: The privilege in statement 1 and transfer of responsibility in statement 2 is likewise available to a senior citizen taxpayer. a. Only statement 1 is correct b. Only statement 2 is correct c. Only statement 3 is incorrect d. None of the statements is correct 32. Statement 1: While the 20% senior citizen discount and vat exemption shall not apply to "children's meals" as these are primarily prepared and intentionally marketed for children, if the PWD is a child, the 20% PWD discount will be applicable as long as it is for his personal consumption. Statement 2: The 20% discount on purchase of food and drinks, beverages, dessert and other consumable items served by establishments includes valuo meals and other similar food counters, fast food, cooked food and short orders including take outs. a. Statements 1 & 2 are false b. Statement 1 Is true but statement 2 is false c. Statement 1 Is false but statement 2 is true d. Statements 1 and 2 are true 597 Exercises - Special Toxic Statement 1: Any donation, bquest, subsidy or financial aid which mannaned in the rehabilitation Uusialements 'a' and "b" d. Neither "a" nor "b" 595 Exercises Special Topics Use the following data for the next two (2) questions. Mabuhay Services Corporation (MSC) provides ovides 20% discount to senior citizens. It recorded the following during the year. Customers Senior Citizen Total Regular Receipts 1.000.000 P9,000,000 P1,000,000 P8,000,000 Cost of services 5,000,000 Other deductible expenses 2,000,000 22. The amount of gross receipts to be reported is a. P1,000,000 c. P9,000,000 b. P1,250,000 d. P9,250,000 23. The regular and special itemized deductions deductible from gross Income of MSC is: a. P2,000,000 c. P5,250,000 b. P2,250,000 d. P7,000,000 24. The taxable net income of MSC is: a. P750,000 c. P1.750,000 b. P1,000,000 d. P2,000,000 25. Mabisa Drugs Incorporation had the following during the year: Customers Senior Regular Citizen Total Gross Sales P8,000,000 P2,000,000 P10,000,000 Cost of Sales 5,000,000 1,000,000 6,000,000 Other deductible expenses 2,000,000 Mabisa adopts a policy of giving senior citizens 25% discount. As a result, it granted P500,000 total senior citizens' discount during the year, 26. The amount of gross sales to be reported is a. P8,000,000 c. P9,600,000 b. P9,500,000 d. P10,000,000 The amount of other deductible expenses to be reported is a. P400,000 c. P2,400,000 b. P500,000 d. P2,500,000 28. The taxable net income is: a. P1,500,000 c. P1,800,000 b. P1,600,000 d. P2,000,000 596 Exercises - Special Topics 596 Exercises - Special Topics 29 Bobods Corporation employs both regular and senior citizen employees and pald the following compensation: Rogular employees P800,000 Senior citizen employees: With salary grade above poverty level 200,000 With salary grade below poverty level 100,000 The deductible compensation expense is: a. P1,100,000 c. P1,120,000 b. P1,115,000 d. P1,145,000 30. Using the above information, except that 20% of the regular employees are persons with disability receiving a total compensation of P160,000, the deductible compensation expense of the corporation is a. P1,152,000 c. P1,178,000 b. P1,155,000 d. P1,192,000 31. Statement 1: If a taxpayer, classified as PWD, is unable to make his own return, the return may be made by his duly authorized agent or representative or by the guardian or other person charged with the care of his person or property. Statement 2: The principal (PWD) and his representative or guardian shall assume the responsibility of making the return and incurring penalties provided for erroneous, false, fraudulent returns. Statement 3: The privilege in statement 1 and transfer of responsibility in statement 2 is likewise available to a senior citizen taxpayer. a. Only statement 1 is correct b. Only statement 2 is correct c. Only statement 3 is incorrect d. None of the statements is correct 32. Statement 1: While the 20% senior citizen discount and vat exemption shall not apply to "children's meals" as these are primarily prepared and intentionally marketed for children, if the PWD is a child, the 20% PWD discount will be applicable as long as it is for his personal consumption. Statement 2: The 20% discount on purchase of food and drinks, beverages, dessert and other consumable items served by establishments includes valuo meals and other similar food counters, fast food, cooked food and short orders including take outs. a. Statements 1 & 2 are false b. Statement 1 Is true but statement 2 is false c. Statement 1 Is false but statement 2 is true d. Statements 1 and 2 are true 597 Exercises - Special Toxic Statement 1: Any donation, bquest, subsidy or financial aid which mannaned in the rehabilitation 596 Exercises - Special Topics 29 Bobods Corporation employs both regular and senior citizen employees and pald the following compensation: Rogular employees P800,000 Senior citizen employees: With salary grade above poverty level 200,000 With salary grade below poverty level 100,000 The deductible compensation expense is: a. P1,100,000 c. P1,120,000 b. P1,115,000 d. P1,145,000 30. Using the above information, except that 20% of the regular employees are persons with disability receiving a total compensation of P160,000, the deductible compensation expense of the corporation is a. P1,152,000 c. P1,178,000 b. P1,155,000 d. P1,192,000 31. Statement 1: If a taxpayer, classified as PWD, is unable to make his own return, the return may be made by his duly authorized agent or representative or by the guardian or other person charged with the care of his person or property. Statement 2: The principal (PWD) and his representative or guardian shall assume the responsibility of making the return and incurring penalties provided for erroneous, false, fraudulent returns. Statement 3: The privilege in statement 1 and transfer of responsibility in statement 2 is likewise available to a senior citizen taxpayer. a. Only statement 1 is correct b. Only statement 2 is correct c. Only statement 3 is incorrect d. None of the statements is correct 32. Statement 1: While the 20% senior citizen discount and vat exemption shall not apply to "children's meals" as these are primarily prepared and intentionally marketed for children, if the PWD is a child, the 20% PWD discount will be applicable as long as it is for his personal consumption. Statement 2: The 20% discount on purchase of food and drinks, beverages, dessert and other consumable items served by establishments includes valuo meals and other similar food counters, fast food, cooked food and short orders including take outs. a. Statements 1 & 2 are false b. Statement 1 Is true but statement 2 is false c. Statement 1 Is false but statement 2 is true d. Statements 1 and 2 are true 597 Exercises - Special Toxic Statement 1: Any donation, bquest, subsidy or financial aid which mannaned in the rehabilitation