Corporation:

1. Libra, Inc., a domestic corporation in its 2 nd year of operation, had the following data on income
and expenses during the year 2018:
Gross income, Philippines P 10,000,000
Business expenses, Philippines 2,000,000
Gross income, China 5,000,000
Business expenses, China 1,500,000
Interest income, Metrobank Philippines 300,000
Interest income, Shanghai Banking Corporation, China 100,000
Rent income, net of 5% withholding tax 190,000

How much is the income tax payable?

a. P 3,540,000 c. P 3,440.000
b. P 3,530,000 d. P 2,480,000

For Question 2 to 4:

The following data were taken from the financial statements of De Vera Corporation, a domestic
corporation for the current year, 2019.

Philippines Japan
Gross sales P 950,000 P 2,000,000
Sales returns 25,000
Cost of goods sold 425,000 300,000
Interest income from trade receivables 10,000 50,000
Interest income from bank deposits 20,000
Dividend income from domestic corporation 15,000
Royalty income 20,000
Operating expenses 250,000 300,000
Income from deposit substitutes 35,000 100,000

2. Its income tax payable is –

a. P 640,000 c. P 680,000
b. P 600,000 d. P 543,000

3. Its final tax on passive income is –

a. P 15,000 c. P 4,000
b. P 8,000 d. P 11,000

4. It’s total income tax on all income if it is a resident foreign corporation –

a. P 60,200 c. P 41,000
c. P 93,000 d. P 28,000

For question 5 to 6:

The taxpayer is a domestic corporation, and the taxable year is 2019:

 Gross sales P 9,350,000
Sales returns and allowances 250,000
Sales discounts 100,000
Interest income on trade notes receivable 150,000
Other income 50,000
Cost of sales 3,000,000
Operating expenses with vouchers and receipts 4,000,000
Interest income from savings deposits 80,000
Interest income from deposit under FCDS 125,000
Royalty income 100,000

5. How much is the taxable income?

a. P 1,675,000 c. P 1,700,000
b. P 2,175,000 d. P 2,200,000

6. How much is the final tax on passive income? 54,750_____

For questions 7 – 10:

Colgate Corporation which started with its operations in 2017 has the following data in 2019:
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
Gross Profit P 600,000 P 950,000 P 900,000 P 870,000
Expenses 500,000 870,000 740,000 675,000
Dividend – domestic company 15,000 15,000 20,000 20,000
Interest – peso bank deposit 3,000 5,000 3,750 2,250
Income tax withheld 5,000 7,000 8,000 6,750
Rent income, gross of 5% WT 36,000 36,000 48,000 48,000

The company had an excess payment of P 12,500 in 2018 from which it has decided to claim tax
credit on the excess.

7. The income tax payable at the end of the first quarter –

a. P 40,800
b. P 36,720
c. P 28,300
d. P 21,500

8. The income tax payable for the second quarter

a. P 26,000
b. P 28,320
c. P 31,800
d. P 75,600

9. The income tax payable for the third quarter

a. P 52,000
b. P 62,400
c. P 12,640
d. None
10. The income tax payable at the end of the year
a. P 25,090
b. P 63,750
c. P 75,900
d. P 68,610