CHAPT-10 BASIC TAX PATTERNS - 65 INCOME TAXATION 5TH...

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SUGGESTED ANSWERS Chapter 10: Basic Income Tax Patterns CHAPTER 10 BASIC INCOME TAX PATTERNS Problem  10  – 1  TRUE OR FALSE 1. True 2. False  - General  professional  partnerships  are  tax- exempt. 3. False  – Not taxable  income  the  Philippines  because  the  passive  income  is earned  outside   the  Philippines. 4. True 5. False  – The  excess  of personal  exemption  over  compensation  income  is to be  deducted   from  net  income  from  business. 6. True 7. False  – Decrease  by creditable  taxes. 8. True 9. False  – passive  income  is not  subject  for deductions. 10. True 11. False  – There  should  be  a combination  of various  income  subject  to the  same  tax  rate   irrespective  of personal  exemption. 12. False  – Taxable  only  for income  earned  within. 13. False  – net  income  or income  from  operation. 14. False  – resident  alien  could  also  opt  for OSD  for business  income  earned  within. 15. False  – Only  P50,000.  Siblings  are  not  allowed  for additional  exemptions. 16. False  – could  claim  P150,000. Problem  10  – 2   1.  A 6.  C 2.  B 7.  C 3.  D 8.  A 4.  C 9.  C 5.  C Problem  10  – 3   D Gross  compensation  income  (P137,500  +P22,500) P190,000 Less:  Personal  exemption  – single       50,000 Net  taxable  compensation  income P140,000 Tax on  P140,000 P22,500 Less:  Withholding  tax   22,500 Net  tax  payable P  -  0  - Problem  10  – 4   C Gross  compensation  income P  90,000 Net  business  income  (P200,000  x 60%)   120,000 Total  net  income  before  personal  exemption P210,000 Less:  Personal  exemption  – married     50,000 Net  taxable  income P160,000 Problem  10  – 5   B Net  income  for the  first  quarter  (P50,000  + P60,000  + P70,000) P180,000
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This note was uploaded on 01/03/2012 for the course ACC 284 taught by Professor Sevton during the Spring '11 term at Abraham Baldwin Agricultural College.

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CHAPT-10 BASIC TAX PATTERNS - 65 INCOME TAXATION 5TH...

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