Edward Joseph T.

Adriano

BSBA FM – 3A

Self-Check (Income Taxation)

Answer Summary

1. A 11. D
2. C 12. C
3. B 13. A
4. B 14. D
5. D 15. B
6. D 16. C
7. A 17. D
8. A 18. C
9. D 19. D
10. D 20. B

21. It is not subject to Final Tax as it is a general professional partnership

22. Total Profit Sharing P300,000

Inclusive Salaries (P120,000)
P180,000
Final Tax Rate x 20%
Final Withholding Tax P18,000

23. C
24. D
25. Yield from deposit substitute P10,000
Prize on “search for Mr. Sexy Body” P15,000
Royalties from books P24,000
Income subject to final tax P49,000

26. Interest on Peso Bank Deposit P22,500

Royalties P9,000
Dividends P 7,000
Share in the distributive income of a joint venture P8,000
Final Withheld Tax P46,500
27. Furikaw Investment P1,000,000
Long-term annual interest 15%
Annual interest P150,000
 2015 P150,000
2016 P150,000
2017 P150,000
2018 P75,000
Total Annual interest P525,000
Tax Rate 12%
Tax Due P63,000

28. Furikaw Investment P1,000,000

Annual Interest P75,000
Tax Due (P63,000)
P1,012,000

29. Furikaw Investment P1,000,000

Long-term annual interest 15%
Annual interest P150,000

2015 P150,000
2016 P150,000
2017 P150,000
2018 P75,000
Total Annual interest P525,000
Tax Rate 12%
Tax Due P63,000

Furikaw Investment P1,000,000

Annual Interest P75,000
Tax Due (P63,000)
P1,012,000

30. Total Consultancy Fees P1,000,000

Final Tax Rate 25%
Final Withholding Tax P250,000
31. Interest income earned from deposit P100,000
Final Tax Rate 25%
Final Withholding Tax P25,000
32. Interest income earned from deposit P100,000
Final Tax Rate 25%
Final Withholding Tax P25,000

33. $0 Since Richard as a non-resident alien not engaged in trade or business, deposited in
the FCDU of a resident foreign bank, therefore he is exempted to final withholding tax.
34. P0 Since Sunrise Bank, a non-resident foreign bank deposited at FCDU unit of Banco
Italiano, a resident foreign bank, it is exempted from final withholding tax.

35. Winnings P218,000,000

Cost of ticket (P10)
Taxable Amount P217,999,990
Final Tax Rate 20%
Tax Due P43,599,998

36. Dividends declared P200,000

Shares owned 40%
P80,000
Final Tax Rate 10%
Final withholding tax P8,000
37. Dividends Declared P120,000
Final Tax Rate 20%
Final Withholding Tax P24,000

38. P0 Since Mr. Sigfried, a resident citizen received dividend income from Vodka, Inc., a
resident foreign corporation, he is exempt from final tax.
39. Dividends declared P1,000,000
Shares owned 40%
P400,000
Final Tax Rate 10%
Final Withholding Tax P40,000
40. Prize from national Dancing competition P800,000
Final Tax Rate 20%
Final Withholding Tax P160,000
41. P0 Since it is not subject to Final Tax in the Philippine Jurisdiction.
42. Cash Prize P10,000
Final Tax Rate x 20%
Final Withheld tax P2,000
43. D
44. 1%, 15%
45. D
46. A
47. D
48. D
49. A
50. D