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# Multiple-Choice- Problem 1

1. Mrs. Belle, self-employed, generated the following receipts during the year:
Proceeds of Health Insurance
Receipts of rentals from boarding house

P

300,000
250,000
100,000

What is the total amount subject to business tax?
a. P 100,000
c. P 350,000
b. P 250,000
d. P 650,000
2. A person engaged in business sold the following properties:
Sales of goods held for sale
Sales of personal residence
Sales of personal car

P 200,000
2,200,000
500,000

Compute the sales in the course of business subject to business tax.
a. P 0
c. P 2,200,000
b. P 200,000
d. P 2,700,000

3. Mr. Julio, employed, received the following from his employer:
Proceeds of property insurance
Proceeds of bank loan
Compensation income

P 200,000
300,000
500,000

What is the amount subject to business tax?
a. P 0
c. P 300,000
b. P 200,000
d. P 500,000
4. Mr. Jun Kim, a security broker effected the sales of sale of several securities resulting of
Kim Jong-un in the following commissions:
Sales
Commission
Sales of stocks
P 120,000
P
1,200
Sales of bonds
280,000
2,800
Total
P 400,000
P
4,000
Compute the amount of receipts or sales of Mr. Jun Kim subject to business tax.
a. P 0
c. P 400,000
b. P 4,000
d. P 404,000
5. Assuming Kim Jong-un is an investor in stocks, what is the amount subject to business tax?
a. P 0
c. P 400,000
b. P 4,000
d. P 404,000
6. Mr. Masipag had annual gross receipts not exceeding P 100,000. During the month, he
made the following sales:
Sales of car rugs
Sales of cigarettes
Sales of candies
Total
Compute the total amount subject to business tax.

P 2,000
3,000
3,000
P 8,000