FRANCO,Arven A.
BSBA-II FM B
True or False. If the statement is TRUE, write T on the space provided. Write F if the statement
is FALSE.
F 1. Items of gross income subject to final tax and capital gains tax are
excluded in gross income subject to regular income tax.
T 2. The taxable compensation income is computed as gross compensation
less than non-taxable compensation income.
F 3. The gross income from business is measured as sales or gross receipts
less cost of sales or cost of services.
F 4. The tax due of individuals is determined by means of schedules of tax
rates.
F 5. The deadline of annual income tax return of corporations using the
calendar year is similar to the deadline fixed for individual taxpayers.
T 6. The deadline of filing the corporate quarterly income tax return is the
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same with the deadline of the quarterly income tax return of individuals.
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F 7. Only corporations may incur deductions against taxable income.
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T 8. The P250,000 income tax exemption for individuals is designed to be in
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lieu of their personal and business expenses.
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F 9. Business expenses can be deducted against all types of gross income
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subject to regular tax.
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T 10. The tax due of corporations is determined by multiplying their gross
income by 30%
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Compute the following problems. Write the letter of your answer on the table provided.
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1. B 6. A 11. A
2. D 7. D 12. B
3. D 8. B 13. C
4. D 9. C 14. B
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5. A 10. A 15. C
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1. Progressive income tax is applicable to
a. Corporate taxpayers
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b. Individual taxpayers
c. Compensation earners only
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d. Individuals in business only
2. Proportional regular income tax is applicable to
a. Corporations only
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b. Compensation earners only
c. Individuals engaged in business
d. Both individuals and corporations
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3. Who cannot claim deductions?
a. Employed taxpayers
b. Self-employed taxpayers in business
c. Self-employed professional taxpayers
d. B and C
4. Who are required to file quarterly declaration of income?
a. Individuals engaged in business
b. Corporations and individuals engaged in business
c. Corporations
d. All individuals and corporations
5. Mr. Jones wishes to file his 2019 income tax return. To avoid penalty, he must file his
return on or before
a. April 15, 2019
b. April 15, 2020
c. August 15, 2020
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d. November 15, 2020
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6. An individual taxpayer must file his income tax return on the third quarter of 2019 on or
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before
a. April 15, 2019
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b. August 15, 2019
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c. November 15, 2020
d. November 15, 2019
7. A purely engaged in business individual taxpayer shall use
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a. BIR Form 1701A
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b. BIR Form 1701
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c. BIR Form 1700
d. BIR Form 1702
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8. A corporation subject to different rates shall use
a. Form 1702-RT
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b. Form 1702-EX
c. Form 1702-MX
d. Form 1701A
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9. A school which is subject to a preferential or special tax rate shall use
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a. Form 1702-RT
b. Form 1702-EX
c. Form 1702-MX
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d. Form 1701A
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10. A corporation that is subject only to a 30% income tax rate shall use
a. Form 1702-RT
b. Form 1702-EX
c. Form 1702-MX
d. Form 1701A
11. Mrs. Sanchez Mira had a gross taxable compensation income of P400,000. She also
earned an additional P2,000 by investing her money in time deposits plus P3,000 interest
income from lending money to a friend. Compute her taxable income.
a. P405,000
b. P402,000
c. P400,000
d. P403,000
Solution: P 400,000
2,000
+ 3,000
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P 405,000
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12. Ms. Claveria had a business net income of P300,000. She also earned P5,000 commission
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from selling cellular cards and P12,000 dividends from a domestic corporation. Compute
her taxable income.
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a. P300,000
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b. P312,000
c. P305,000
d. P317,000
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Solution: P 300,000
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12,000
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P 312,000
13. Mr. Pamplona earned total gross receipts of P800,000 and paid P300,000 in expenses in
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his accounting practice. During the same year, he also earned a total of P60,000 net gain
from the sale of domestic stocks directly to a buyer. He also disposed a vacant lot at a net
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gain of P140,000. What is the taxable income of Mr. Pamplona?
a. P400,000
b. P460,000
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c. P500,000
d. P600,000
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Solution: P 800,000
- 300,000
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P 500,000
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14. Mr. Gudani had the following data in 2019:
Philippines Abroad
Gross Income from Sales P 4,000,000 P 6,000,000
Interest Income from Deposits 40,000 80,000
Less: Deductions 2,000,000 3,600,000
Total P 2,040,000 P 2,480,000
Compute the taxable income if Mr. Gudani is a resident citizen.
a. P4,480,000
b. P4,520,000
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c. P2,040,000
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d. P2,000,000
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Solution: Local :P 2,040.000
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International : + 2,480.000
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15. In the preceding problem, compute the taxable income if Mr. Gudani is a non-resident
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citizen.
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a. P4,480,000
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b. P4,520,000
c. P2,040,000
d. P2,000,000
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Solution: P4,000.000 + 40,000 = P4,040.000
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P4,040.000 – 2,000.000 = P2,040.000
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Th
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