College of Management

BA 104
INCOME TAXATION

Instruction:
Determine the requirement for each item. Three (3) points will be given (1 point for
correct formula, 1 point for correct solution, and 1 point for correct final answer) for every
requirement.

1. A taxpayer is an owner of a convenience store and at the same time offering professional
services in 2022 has a gross sales amounted to P950,000 from the store and receipts of
P500,000 from rendering of the services to the clients.

Requirement:
a. Compute the tax due of the taxpayer if he signified an intention to be taxed at 8%
income tax rate in the annual tax return.

b. Compute the tax due of the taxpayer if he will use the graduated tax table.

2. The taxpayer is operating a store and has annual gross sales of P9, 500,000, cost of sales
of P5, 000,000 and total operating expenses of P6, 000,000. Compute the tax due of the
taxpayer.

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