Problem 1

Compensation Income 650,000

Less: Mandatory contributions (100,000)
550,000
Less: 400,000
the excess over 400,000 150,000
Multiply by 25% tax rate 20%
30,000
Add: 30,000
60,000
Problem 3

A. Taxable Income 1,000,000

Less: 800,000
excess of 800,000 200,000
x 25% tax rate 30%
60,000
add: 130,000
190,000

B. Gross receipts 2,000,000

Less: 250,000
excess of 250,000 1,750,000
x 8% tax rate 8%
140,000
Problem 4
1st Quarter 2nd Quarter 3rd Quarter
A. Gross income 200,000 280,000 450,000
Less:
excess of 250,000
x 8% tax rate

B. Gross income 1,450,000

less: 250,000
excess of 250,000 1,200,000
x 8% tax rate 8%
96,000

1st Quarter 2nd Quarter 3rd Quarter

C1. Taxable income 50,000 120,000 250,000

C2. Taxable income 710,000

less: 400,000
excess of 800,000 310,000
x 25% graduated tax rate 25%
77,500
add: 30,000 30,000
107,500
4th Quarter
520,000

4th Quarter
290,000
Problem 6

A. Compensation income 2,000,000

Less: Non-taxable 13th month pay and other benefits (max. 90k) 90,000
1,910,000
Less: 800,000
excess of 800,000 1,110,000
x 30% graduated tax rate 30%
333,000
add: 130,000
463,000

Business income 1,500,000

add: Non-operating income 100,000
1,600,000
x 8% tax rate 8%
128,000

Total income tax due 591,000

B. Compensation income 2,000,000

Less: Non-taxable 13th month pay and other benefits (max. 90k) 90,000
1,910,000
add: Taxable Business income
Gross Sales 1,500,000
Less: Cost of sales 700,000
Less: Operating expenses 200,000
Net operating income 600,000
add: Non-operating income 100,000
Total taxable business income. 700,000

Total taxable income 2,610,000

less: 2,000,000
excess of 2,000,000 610,000
x 32% graduated tax rate 32%
195,200
add: 490,000
Total income tax due 685,200