Chapter 2 Exercise:

2-1
1. Non-Resident Citizen
2. Non-Resident Citizen
3. Non-Resident Citizen
4. Non-Resident Alien Not engaged in Trade or Business
5. Resident Citizen
6. Resident Alien

2-2
1. FWTx- 20%
2. FWTx- 7.5%
3. BTx
4. FWTx- 20%
5. Exempt
6. BTx
7. BTx
8. BTx
9. BTx
10. BTx
11. FWTx- 20%
12. FWTx- 10%
13. FWTx- 20%
14. BTx
15. Exempt
16. FWTx- 20%
17. FWTx- 20%
18. Exempt
19. Exempt
20. Exempt
21. Exempt
22. Exempt
23. FWTx- 20%
24. FWTx- 20%
25. Exempt
26. FWTx- 30%
27. Exempt
28. Exempt
29. FWTx- 30%
30. FWTx- 25%
31. FWTx- 25%
32. FWTx- 15%
33. FWTx- 6%
34. Exempt
35. Exempt
2-3
1. a. Exempt
b. Exempt
c. Income tax due- 130,000
d. Income tax due- 746,000
2. Income tax payable- 95,000
3. Income tax payable- 124,000
4. Income tax payable- 215,000
5. Not Applicable
6. Income tax due- 302,500
7. Yes. 110,000
8. Income tax payable- 212,000
9. Yes. 188,000

2-4
10. a. 1,050,000
b. 80,000
c. 57,500
d. 262,500
11. a. 980,000
b. 59,000
c. 11,500
d. 195,500
12. a. 140,000
b. Exempt
c. Exempt
d. 0
13. a. 980,000
b. 59,000
c.16,500
d. 221,500
14. 375,000

2-5

2-6
a. P555,000.00
b. P370,000.00
c. P925,000.00

2-7
a. 342,000
b. 8,200
c. 250,000
d. 160,000
2-8
1. 0
2. 17,600
3. 56,250
4. 123,325
5. 12,600
6. 36,000

2-9
1. Selling price- 330,000
Fair market value- 360,000
Zonal value- 351,000
2. Gain- 30,000
Zonal- 132,000
Cost- 12,000
3. Selling price- 300,000
Fair market value- 360,000
Zonal value- 330,000
4. CGT- 278,400

2-10
a. 900,000
b. 1,200,000
c. Non taxable

2-11
CGT- 39,000

2-12
CGT- 15,000

2-13
CGT- 9,600

2-14
CGT- 15,000

TRUE OR FALSE:
1. True
2. True
3. True
4. False
5. True
6. False
 7. False
8. True
9. True
10. True
11. False
12. True

MULTIPLE CHOICE:
1. D
2. C
3. A
4. A
5. A
6. A
7. D
8. D
9. B
10. D
11. B
12. A
13. D
14. D
15. B
16. B
17. A
18. A
19. B
20. D
21. C
22. B
23. D
24. D
25. A
26. B
27. D
28. B
29. C
30. A
31. B
32. C
33. D
34. A
35. B
36. C
37. D
38. B
39. A
40. B
41. D
42. B