An air carrier reported the following for its air transport operations’

Destination Fare

Phil-Aus 1M (1000 tickets)

Aus-Phil 1250000 (1000 tickets)

Phil-Rus* 2M (1000 tickets)

Phil-Jap 1.5M (2000 tickets)

*The flight was referred to another airliner

The Japanese airliner airlifted the passengers for Russia.

Determine the income tax due assuming that the carrier is a/an:

1. International carrier

A. 143,750

B. 112,500

C. 81,250

D. 62,500

2. Domestic carrier

Antarctica shipping co. reported the following gross reeipts and deductions during the year

` Incoming Outgoing Total

Gross receipts 2M 3M 5M

Deductions 1.5M 2M 3.5M

Compiute tax assuming domestic shipping carrier

a. 450,000

b. 125,000

c. 75,000

d. 30,000
A government hospital has a gross income of P4,000,000 , only 40% of this were contributed by related
activities, and total expenses of P3,000,000, 50% incurred in connection with related activities. Compute
the income tax

A. 0

B. 240,000

C. 90,000

D. 270,000
1) which of these concepts is not relevant to corporations?

A. Exclusion

B. Gross income

C. Deduction

D. Personal exemptions

2) The preferential tax rate of 10% on taxable income applies to

A. Proprietary hospital

B. Proprietary school

C. Nonprofit school

D. Nonprofit association

3) Exempt corporations are nevertheless subject to 30% tax on income from

A. Related activities

B. Unrelated activities

C. Both A and B

D. Neither A and B

4) Exempt corporations are not required to file income tax returns because they do not pay tax. (T/F)

5) Expenses of an exempt corporation not directly traceable to either related or unrelated operations
are allocated based on the ratio of gross income. (T/F)