Multiple Choices – Case Problems

PROBLEM 1:
1. D (P350K Total TI x 30%)
2. A (P200K PH TI x 30%)
3. B (P400K PH GI x 30%)
4. B (P350K Total TI x 10%)
5. D
6. A (P350K Total TI x 30%)
7. B (P400K PH GI x 2.5%)
8. C (P200K PH TI x 10%)
9. C (P400K PH GI x 25%)
10. A (P400K PH GI x 4.5%)
11. C (P400K PH GI x 7.5%)
12. B (P350K Total TI x 60%)x 30%

PROBLEM 2:
1. A (P300K Total TI x 30%)
2. C (P300K Related GI x 10%)
3. B (P100K Unrelated TI x 30%)

PROBLEM 3:
1. B (P3M FCDU II to other residents x 10%)
2. B (P1.2M RBU NI x 30%)

PROBLEM 4:
1. A [(P500K GI-P200K DDP62.5K Allocated
CE)x30%]
2. D
3. D
4. C
5. D
6. C
7. C
8. B (P500K PH GI X30% FT)

PROBLEM 5:
1. D (P1.5M Total NI x 30%)
2. B (P3M Outgoing GR x 2.5%)

PROBLEM 6:
1. D [(P1M AUS)+(1K X P750 RUS)+P1.5M JAP]X2.5%; The P750 is computed as P1.5M/2K
which is from
PH-JAP
2. B [(P1M+P1.25M+P2M+P1.5M)-P3M GE] X 30%

PROBLEM 7:
1. C (P4M X 2.5%)
2. C (P4M X 4.5%)--- 2019 INCOME TAXATION SOLUTION MANUAL ---
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PROBLEM 8:
1. D [P4M x 60% - P3M x 50%) x 30% tax]
Note that the rule on non-profit school is classification not the dominance test. But the
same is subject
to the Constitutional exemption. If the Constitutional exemption does not apply, the
income from
unrelated activities would be taxed.
2. A (Everything will be exempt by virtue of Constitutional exemption.)
3. A (P4M x 60% - P3M x 50%) x 30% tax. Only the income from unrelated activities is
taxable.
4. C (P4M – P3M) x 30%. Note that the dominance test is failed.
5. D (P4M – P3M) x 30%. Private hospitals are subject to the 30% regular income tax.
6. B (P4M – P3M) x 30%. The dominance test is failed.
7. B. Only the income from unrelated activities is taxable.

PROBLEM 9:
1. D (P2M X 10%) Dominant test is passed.
2. D (Same answer. The Constitutional exemption for income actually, directly and
exclusively for
educational purposes relates to non-profit, non-stock educational institutions.)