Taruc, Trisha Mae T.

BSA1202 – 2T

EXERCISE 8 – 1

1. T
2. F
3. T
4. T
5. F
6. T
7. T
8. T
9. T
10. F
11. F
12. T
13. T
14. T
15. F
16. T
17. T
18. F
19. F
20. T

EXERCISE 8 – 2

I. Classify the following income into:

A. Self – Employment
 Rent income of apartment
 Gain on sale of a commercial building
 Gain on sale of residential house
 Income as street vendor
 Income as junk shop owner
B. Passive subject to final withholding tax
 Interest on peso deposit with Bank of the Philippine Islands
 Royalty as book author
 Interest income on Euro deposit with Metrobank
 Share in the net income of a partnership in trade
 Gain on sale of shares of stock (not traded)
  Winnings in a lottery sponsored by Philip Morris Philippines
 Dividend received as stockholder of a corporation
 Lotto winnings
C. Compensation
 Night differential pay
 Honorarium of a CPA as speaker in a Continuing Professional
Development (CPD) seminar
 Income received by a CPA as an independent auditor
 13th month pay
 Honorarium received as President and Director of a corporation
 Travel allowance
 Productivity incentive pay
II. On the following income, write (Y) if the taxpayer can avail 8% income
tax rate, and (N) if the taxpayer cannot avail of the 8% income tax rate.
1. Y
2. Y
3. Y
4. Y
5. Y
6. N
7. N
8. N
9. N
10. N
11. Y
12. Y
13. N
14. Y
15. N
16. Y
17. N
18. N
19. N
20. N