Activity #1 Midterm
Regular Income Tax for Individuals
Name: ______________________________ Score:
Year and Blk: _________________________
General Instruction: Compute for each problem using the graduated income tax table below, write your answers and solutions in
the space provided. No solution, no point.
Amount of Net Taxable Income Rate
Over But Not Over
- P250,000 0%
P250,000 P400,000 15% of the excess over P250,000
P400,000 P800,000 P22,500 + 20% of the excess over P400,000
P800,000 P2,000,000 P102,500 + 25% of the excess over P800,000
P2,000,000 P8,000,000 P402,500 + 30% of the excess over P2,000,000
P8,000,000 P2,205,500 + 35% of the excess over P8,000,000
Problem No. 1
Riley Colet, who owns a manufacturing business, has reported the following results of operations:
Sales, net of returns and discounts P 4,000,000
Cost of sales 1,800,000
Dividends income, net of final tax 36,000
Business expenses 1,600,000
Gain on sale of old equipment 100,000
Gain on sale of domestic stocks directly to a buyer 10,000
Deduction incentive to PWD employees 25,000
Requirements:
1. How much is the net income subject to income tax? ________________________
2. How much is the income tax due? ___________________________
Use this section for your solutions.
Problem No. 2
Trixie’s business uses a fiscal year accounting period starting July 1 and ending June 30 for internal reporting purposes. Her
business reported the following quarterly net income on a fiscal year basis:
FISCAL YEAR 2022-2023 2023-2024
- 1ST Quarter (July 1 to September 30) 190,000 220,000
- 2nd Quarter (October 1 to December 31) 210,000 180,000
- 3rd Quarter (01/01/2023 – 03/31/2023) 250,000
- 4th Quarter (04/01/2023 – 06/30/2023) 200,000
Requirements:
3. How much is the taxable net income to be reported on April 15, 2024? _____________________
4. How much is the income tax due? ______________________
Use this section for your solutions.
Problem No. 3
Jerson, a resident citizen, had the following income:
Philippines Abroad
Compensation income 280,000 -
Rental income 50,000 100,000
Royalties – books 32,000 25,000
Domestic dividends 9,000 -
Foreign dividends - 40,000
Requirements:
5. How much is the taxable net income assuming he is a resident citizen? ____________________
6. How much is the tax due assuming he is a resident citizen? ____________________
7. How much is the taxable net income assuming he is a resident alien? ______________________
8. How much is the tax due assuming he is a resident alien? ______________________
Use this section for your solutions.
Problem No. 4
The following relate to the net income of the firm of Mr. Oda:
Professional fees 600,000
Long-term capital gain 80,000
Short-term capital gain 45,000
Ordinary gain 20,000
Long-term capital loss (90,000)
Short-term capital loss (30,000)
Ordinary loss (40,000)
Other business expense (200,000)
Net income 385,000
Note: Please review the topics on dealing with properties before solving this problem.
Requirements:
9. How much is the taxable net income? ____________________
10. How much is the tax due? _____________________
Use this section for your solutions.
Problem No. 5
Complete the missing items.
Net Sales Allowable Deductions Taxable income (loss) Tax Due
3,000,000 2,615,000 385,000 1.
2,100,000 860,000 2. 3.
4,500,000 5,100,000 4. 5.
1,900,500 6. 1,660,500 7.
680,000 8. 556,000 9.
10,050,000 7,939,500 10. 11.
28,400,000 12. 13,916,000 13.
3,840,000 14. 1,881,600 15.
You may use the back page for your solution.