Determine the taxable net income of partner reyes a

Remaining Life of the
Asset after Lease
Term/Over Life of the
Asset
x Cost of the Asset/
Remaining Lease Term
120. Determine the taxable net income of Partner Reyes
A. P1,059,000
B. P1,000,000

C. P1,100,000
D. P1,110,000
121. Determine the net income subject to tax of Partner Santos
SITUATION 35 (BUSINESS TAXATION): EX Corporation, a VAT registered company engaged
in the lease of residential properties. During the first quarter of 2020, the following
information were made available (all amounts are exclusive of VAT):
• Rental income with monthly rental of P18,000 per unit – P800,000
• Rental income with monthly rental of P15,500 per unit – P600,000
• Rental income with monthly rental of P10,000 per unit – P400,000
• Receivable from tenants as of December 31, 2019, (60% is VAT Exempt) – P200,000
• Receivable from tenants as of March 31, 2020 (40% is VAT Exempt) – P300,000
• Deferred rent income as of December 31, 2019 (60% is VAT Exempt) – P200,000
• Deferred rent income as of March 31, 2020 (40% is VAT Exempt) – P250,000
• Input tax credit on purchases of goods and services for the first quarter of 2020
– P80,000
122. How much is the output tax due for the first quarter of 2020?
123. How much is the creditable input tax credit for the first quarter of 2020?
A. P35,200
B. P61,838
C. P62,629
D. P80,000
124. Assuming on April 5, 2020, EX Corporation sold a residential house and lot for
P3,000,000 (VAT Exclusive). How much is the output tax due on its sale of real
property, assuming the zonal value of the property is P3,248,000?
125. When is the deadline for filing of first month of the quarter VAT return? SITUATION 36 (BUSINESS TAXATION, Adapted): The Yumabong Banking Corporation, a
domestic bank, had the following income and expense items recognized under IFRS for
the quarter ended September 30, 2021 (tax exclusive, if applicable):
Income items:
Dividends 800,000
Equity income in subsidiary 1,000,000
Rentals of property acquired in mortgage foreclosures 4,000,000
Rentals of safety deposit boxes 300,000
Interest on loans with remaining maturities of:
Not more than five years 4,000,000
More than five years 6,400,000
Interest income on bank deposit (net of 20% FWT) 800,000
Interest income on bank deposit (net of 15% FWT) 425,000
Net trading gain (net of trading loss of P750,000) 1,350,000
Expense items:
Purchases of supplies and services from VAT-registered
suppliers 1,050,000