Quiz 1 Tax 2 April 23, 2019

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Problem __
Mr. A is not a minimum wage earner, with the following data in a year:

Salaries Php1, 200, 000

Benefits 120, 000
Mandatory Deductions (SSS, PHIC, HDMF) 25, 000
Income tax withheld by the employer 40, 000
Required: Income tax still due or refundable

Problem __
It was anticipated that the gross sales for the year of the individual in business subject to the 3%
business tax will not exceed Php3, 000, 000:

Gross sales (subject to 3% business tax) Php2, 800, 500

Cost and expenses, with supporting vouchers and receipts 1, 950, 500
Required:
a. the 8% income tax
b. the graduated income tax
c. the better choice, (a) or (b)?

Problem __
It was anticipated that the gross receipts for the year of the individual in the practice of profession
subject to the 18% amusement tax will not exceed Php3, 000, 000:
Gross receipts (subject to 18% amusement tax) Php2, 951, 000
Cost and expenses, with supporting vouchers and receipts 1, 780 , 000
Required:
a. income tax at 8%? Yes or No?
b. income tax at graduated rates

Problem __
Non-cumulative(for each quarter) for an individual in business subject to the 3% percentage tax:
Gross sales Costs and expenses
First Quarter Php1, 500, 000 Php1, 100, 000
Second Quarter 1, 400, 000 900, 000
Third Quarter 1, 900, 000 1, 300, 000
Fourth Quarter 2, 100, 000 1, 500, 000
Required: Income tax, if the initial choice was the 8% tax:
First Quarter
Second Quarter
Third Quarter
Year
Quiz 1 Tax 2 April 23, 2019

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Problem __
Non-cumulative(for each quarter) for an individual the practice of profession subject to the 3%
percentage tax:
Gross sales Costs and expenses
First Quarter Php3, 000, 000 Php2, 100, 000
Second Quarter 3, 500, 000 1, 900, 000
Third Quarter 4, 300, 000 2, 600, 000
Fourth Quarter 3, 200, 000 1, 950, 000
Required:
a. Income tax at graduated rates, if the initial choice was the itemized deductions:
First Quarter
Second Quarter
Third Quarter
Year
b. Income tax at graduated rates, if the initial choice was the Optional Standard Deduction:
First Quarter
Second Quarter
Third Quarter
Year

Problem __
Mr. B is an employee, with gross compensation income of Php 800, 000 and
In business:
Gross sales of Php2, 200, 000
Non-operating income of 90, 000
Costs and expenses 1, 400, 000
Required: How much is the total income tax if at the 8% rate?

Problem __
Mr. C is an employee, with gross compensation income of Php 700, 000 and
In business:
Gross sales of Php5, 700, 000
Non-operating income of 100, 000
Costs and expenses 3, 200, 000
Required: How much is the income tax at graduated rates,
a. if availing of itemized deductions?
b. if availing of Optional Standards Deduction?