Chapter Chapter 8 - Advance Accounting. Blt chapter 2. Related Books Free with a 30 day trial from Scribd. Freedom Sebastian Junger. Related Audiobooks Free with a 30 day trial from Scribd. The Shattering: America in the s Kevin Boyle. Peril Bob Woodward. Taxable Nontaxable Nontaxable 28 Taxable Nontaxable 29 Taxable True 2. False — only Philippine charity sweepstakes are not subject to tax in the Philippines.
False — subject to normal tax, in general 4. False — nontaxable because the other income is subjected only to final tax. True False — Proceeds of life insurance is not taxable regardless of whoever would be the recipient, except when the insured person outlived his life insurance and received the proceeds. The excess of proceeds over premium paid is taxable. False — include in gross income False — Bequest is a personal property.
False — nontaxable because aliens are taxable only for income derived within the Philippines. True 5. True 6. False — nontaxable 7. False — nontaxable in general 8. True 9. True False — some prizes and awards are exempt by law from taxation. False — Include in gross income because income from gift is subject to income tax.
False — Tax-exempt True Problem 1. C Problem 1. D Problem 5 —8 A Basic minimum wage 13th month pay day monetized unavailed vacation leave Overtime pay Holiday pay Christmas bonus de-minimis Total nontaxable income Problem 1.
D P 90, 7, 3, 24, 2, 5, P, 3. Pay Excess rice subsidy Excess clothing to complete P30, Rice subsidy — de minimis Clothing allowance Total Nontaxable P, 30, 2, 1, 13, But if he has other income that is subject to normal tax, his entire income during the year will be subject to income tax, his compensation income, however, will not be subject to WTW. Problem 5 —19 C Taxable P, 50, 6, 27, 5, Problem 5 —25 B Maturity value received Premium paid Premium refund Income in excess of premium paid P, , 40, P 50, The premium refund is actually a decrease of premium paid.
Problem 5 —26 D Zero, because, the P, cash surrender value is just a partial return of total contribution of P, Problem 5 —27 D Car insurance Accident insurance Life insurance as beneficiary Cash surrender value of life insurance Participating dividend Total amount excluded from gross income P, , , 30, 10, P, The participating dividend and cash surrender value are considered return of premium.
The interest income, however, is included in the gross income. It represents income from the use of insurance proceeds not yet taken. Letter C Total premium paid — excluded P, The total premium paid is excluded because such amount represents return of capital.
Letter A Total consideration received — excluded P2,, The proceeds of life insurance policies paid to the heirs or beneficiaries upon the death of the insured are excluded from the gross income of the beneficiary.
Problem 5 —30 Taxable income A P Problem 5 —31 A The retirement pay should be included in the gross income because Max retired at an optional age and has rendered less than 10 years in service. To be excluded from gross income, an employee should have been in the service of the same employer for at least ten 10 years and at least 50 years at the time of his retirement. P - 0 - Nontaxable P 60, , 10, 40, P, Problem 5 —34 A The termination is due to cause within the control of Jalosjos, separation pay is taxable.
SSS daily maternity leave benefit is equivalent to the average daily salary credit for 60 days or 78 days in case of caesarian delivery, subject to certain conditions. Problem 5 —39 C Interest income from bank savings deposit, subject to final tax at source P4, His annual income from professional fee is not more than P60, which is exempt. Problem 5 —40 D Zero. All winnings received by Miss Lara are subject to tax because she has entered into a contest Miss International which requires rendition of subjstantial future services as a condition to receive such prize or award.
Magnolia Raz Follow. Accountant at Back Office AS. Income Taxation 6th Edition by Valencia- Chapter 6. Chapter 11 percentage taxes- Valencia. Chapter 7. Blt chapter 3. Chapter Blt chapter 2. Related Books Free with a 30 day trial from Scribd.
And Everyone Else's Lindsey Stanberry. Related Audiobooks Free with a 30 day trial from Scribd. Elizabeth Howell. True 2. True 4. False — Sometimes a sale results to loss. True 6. True 7. True 8. False — Filipino citizen who is not residing in the Philippines is taxable only for income earned within. False — The basis of tax is the fair market value of the instrument. False — Not income for the employee and not subject to income tax because the beneficiary is the employer. False — Accrual reporting reports income when there is earning regardless of collection.
False — Most taxpayer opts for calendar year basis, except corporation which may opt for fiscal year. True False — Prepaid expenses are not allowable deductions whether cash or accrual method of reporting income is used.
True 3. False- All income distributed are considered as from all income earned outside the Philippines. False — Only calendar method starts from January and ends at December of the taxable year. False — Service business is allowed to deduct expenses using accrual method if such business opted to use accrual method, but the income is still reportable using cash basis.
C Problem 3 — 4 1. Payment of damages for unrealized profits is a taxable income. Income may be constructively received even if not physically transferred to a person for as long as it is credited to the account of, or segregated in favor of a person. P, P 20, , P, Taxable Income P, 50, , , P, Note: Lotto winnings earned outside the Philippines by a resident Filipino citizen are taxable in the Philippines. Net salary as university professor Add: Withholding tax on wages Compensation income 2.
P50, Farming P 50, Trading P, 25, P95, 10, P, Rent P, Total 8. P 53, P 60, P, Problem 3 — 39 1.
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