1.
A domestic corporation provided the following data:
2019 2020 2021 2022
Gross sales P2,040,000 2,800,000 3,000,000 4,000,000
Sales returns 40,000 100,000
Cost of goods sold 1,000,000 700,000 1,500,000 1,500,000
Business expenses 950,000 1,900,000 1,600,000 1,200,000
The income tax due after tax credit, if any for taxable year 2022 is: ______________________
277,500
Finale Corporation is in the food retail business with total assets of ₱40,000,000, excluding the land on which its
business is situated. It has the following data for the year 2021:
Gross Income, Philippines P1,000,000
Gross income, USA 500,000
Gross income, Japan 500,000
Expenses, Philippines 300,000
Expenses, USA 200,000
Expenses, Japan 100,000
Other Income:
Dividend from San Miguel Corp. 70,000
Dividend from Ford Motors, USA 120,000
Gain, sale of San Miguel shares directly to buyer 150,000
Royalties, Philippines 50,000
Royalties, USA 100,000
Interest income (other than from bank deposit) 60,000
Rent, land in USA 250,000
Other rental income (Phils.) 100,000
Prize, contest in Manila 200,000
Interest income ($ deposit in BDO) 50,000
18. If Finale is a domestic corporation, what is its tax due in its 2021 annual ITR?
______________________
19. If Finale is a domestic corporation, what is the total amount of final taxes to be withheld from its income in 2021?
a. ₱42,500 c. ₱35,500
b. ₱40,000 d. None of the above.
20. If Finale is a resident foreign corporation, what is its tax due in its 2021 annual ITR?
______________________
21. If Finale is a resident foreign corporation, what is the total amount of final taxes to be withheld from its income in
2021?
a. ₱42,500 c. ₱35,500
b. ₱40,000 d. None of the above.
22. If Finale is a non-resident foreign corporation, what is the total amount of final taxes to be withheld from its
income in 2021?
a. ₱412,500 c. ₱385,500
b. ₱430,000 d. None of the above.
18. P446,000
19. B
20. 265,000
21. B
22. C
Gullible Corporation’s computed RCIT and MCIT, creditable income taxes withheld from the 1st to 4th quarters, and the
excess MCIT
and excess withholding taxes prior years are as follows:
Quarter RCIT MCIT Taxes Withheld
First P100,000 P 80,000 P 20,000
Second 120,000 250,000 30,000
Third 250,000 100,000 40,000
Fourth 200,000 100,000 35,000
Excess MCIT (prior year) P30,000
Excess withholding tax (prior year) 10,000
5. How much is the income tax payable at the end of the first quarter? ___________________
6. How much is the income tax payable at the end of the second quarter? ___________________
7. How much is the income tax payable at the end of the third quarter? ___________________
8. How much is the income tax payable at the end of the fourth quarter? ___________________
5. 40,000
6. 230,000
7. 70,000
8. 165,000