Problem 1.

Analyn generated annual income of ₱ 450,000, net of statutory payments. Tax exempt 13th month
pay and other bonuses – ₱ 50,000. Determine the tax due of Jacqueline Cruz based on the following
possible tax status of Jacqueline:
1. Analyn is single with no dependent.
2. Analyn is single with one qualified dependent.
3. Analyn is married with one qualified dependent.
4. Analyn is married with 3 qualified dependent.

Solution:

Status 1. Single 2. Single 3. Married 4. Married

Annual 450,000 450,000 450,000 450,000
Compensatio
n
Tax-exempt (50,000) (50,000) (50,000) (50,000)
13th mo. Pay
Personal (50,000) (50,000) (50,000) (50,000)
deduction
Addt’l (25,000) (25,000) (75,000)
deduction per
qualified
dependent
=
Taxable 350,000 325,000 325,000 275,000
income
Base tax 50,000 50,000 50,000 50,000
Addt’l tax rate 30% 30% 30% 30%
Tax due 80,000 72,500 72,500 57,500

Problem 2.

Calista is a consultant. Total fees earned during the year amounted to P900,000. Calista opted to use
the optional standard deduction of 40%. Determine the tax due of Calista based on the following
possible tax status:
1. Calista is single with no dependent.
2. Calista is married with one qualified dependent.
3. Calista is married with four qualified dependent.
 Status 1. Single 2. Married 3. Married
Total project 900,000 900,000 900,000
fees
Optional (360,000) (360,000) (360,000)
standard
deduction
40%
=
Taxable 540,000 540,000 540,000
income
Personal (50,000) (50,000) (50,000)
deduction
Addt’l (25,000) (100,000)
deduction per
qualified
dependent
= 490,000 465,000 390,000
Taxable
income
Base tax 50,000 50,000 50,000
Addt’l tax rate 30% 30% 30%
Tax due 122,000 114,500 92,000

Problem 3.
Sensei owns a trading business. Sales for the year amounted to P 1,765,000. Expenses are given in
the table below:

Beginning inventory P 123,000 Purchases P 655,000

Rental 62,000 Ending inventory 144,000
Representation 12,500 Depreciation 26,000
Communication, light and water 52,000 Transportation 20,000
Office supplies 15,000 Bad debt expense 5,500

Determine the tax due of Sensei based on the following possible tax status:
1. Sensei is married with two qualified dependent.
A. P200,050 C. P233,160
B. P225,160 D. P245,070
2. Sensei is single with three qualified dependent.
A. P200,050 C. P233,160
B. P225,160 D. P245,070