University of the East - Caloocan

College of Business Administration

BTX 112 Income Taxation

Name

Equivale
nt
Date

Section
INCOME TAXATION: CORPORATION

Multiple Choice
Identify the choice that best completes the statement or answers the question.
____

1. Miguel Antonio Corporation, a corporation engage in business in the Philippines and abroad, has
the following data in 2014:
Gross income, Philippines
Expenses, Philippines
Gross income, USA
Expenses, USA
Interest on Bank Deposit

975,000.00
750,000.00
770,000.00
630,000.00
25,000.00

Income tax due if the corporation is Domestic

Resident foreign
a.
116,800
72,000
b.
127,750
78,750
c.
109,5000
67,500
d.
312,000
515,850

Non-resident foreign
320,000
350,000
300,000
116,800

Charlie Corporation, a domestic corporation has the following record of income and expenses
during the year:
Gross income
Expenses
Dividend from a resident foreign corporation
Royalties, Philippines
Royalties, US
Interest on time deposit with Metrobank
Interest on money market placement

____

____

2. The taxable income of Chalie isa. 616,000

b. 886,000

1,540,000.00
654,000.00
95,000.00
230,000.00
175,000.00
18,000.00
25,000.00

c. 641,000
d. 1,156,000

3. The total final withholding taxes on Charlie is-

a. 51,475
b. 148,100

c. 72,000
d. 103,120

WeShare Corporation, a domestic corporation has the following records of income and expenses
in 2014:
Gross Income, net of 1% w/holding tax

1,435,500.0
0
756,000.00
136,800.00
34,600.00
25,000.00
80,000.00
15,000.00

Expenses
Rent Income, net of 5% w/holding tax
Expenses on rent
Dividend from domestic corporation
Royalty
Interest from bank deposit with PNB, gross of tax

____

4. Based on the above information, the total final taxes payable of WeShare Corporation isa. 33,250
c.
3,000
b. 19,000
d. 21,500

____

5. The income tax payable by WeShare Corporation isa. 803,400

c. 219,320
b. 241,020
d. 259,490
Dear Mikee Corporation which started its operation in 1994 has the following records in 2014
1st
QUARTER
Gross Profit
Expenses
Dividend-Domestic Company
Interest-Peso Bank Deposit
Income tax withheld
Rent income, gross of 5% withholding
taxes

2nd
QUARTER

3rd
QUARTER

4th
QUARTER

500,000.00 850,000.00 800,000.00 770,000.00

400,000.00 770,000.00 640,000.00 575,000.00
15,000.00
15,000.00 20,000.00 20,000.00
3,000.00
5,000.00
3,750.00
2,250.00
5,000.00
7,000.00
8,000.00
6,750.00
36,000.00
36,000.00 48,000.00 48,000.00

The company has an excess payment of P12,500 in 2013 from which it had decided to claim tax
credit on the excess.
____

6. The income tax payable at the end of the year isa. 25,090
c. 75,900
b. 63,750
d. 68,610

____

7. The income tax payable at the end of the second quarter isa. 19,200
c. 31,800
b. 28,320
d. 26,000

____

8. The income tax payable at the end of the third quarter isa. 52,000
c. 12,640
b. 62,400
d. None

____

9. The income tax payable at the end of first quarter isa. 36,720
c. 21,500
b. 28,300
d. 40,800
The Babula Arts and Business Institute (BABI), is a private educational institution recognized by
the government. Presented below are financial data of the fiscal year ending June 30, 2014:
Tuition fees
Miscellaneous fees
Interest on bank deposits
Rent income of school facilities to outsiders
Salaries and bonuses, all personnel
Other operating expenses
Repayment of loan
Quarterly (three quarters) income tax paid

12,800,000.00
1,800,000.00
12,300.00
350,000.00
7,500,000.00
3,500,000.00
400,000.00
48,000.00

A building was constructed on April 2, 2009 at a cost of P2,000,000 with a depreciable life of 50
years.
____ 10. Assuming the cost of construction is treated as expense, the income tax payable by the school
for the year ended June 30, 2014 isa. 160,00
c. 576,000
b. 343,000
d. 147,000
____ 11. The income tax payable if the cost of building construction is capitalized by BABI isa. 1,203,200
c. 147,000
b. 345,000
d. 346,000
Analysis
1. Aubrey, married but legally separated. She is supporting illegitimate child.
2. Barbara, single, supporting Carmina, her widowed sister, 23 years old, unemployed, and
Carminas 20 years old child.
3. Cinderella, single, supporting her stepmother and stepsister.
4. Diana, abandoned her husband after a quarrel. Her husband has lived since then separately in
Baguio City.

5. Ethel, single, supporting her brother, 25 years old, metally incapacitated.

INCOME TAXATION: CORPORATION
Answer Section
MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

C
D
A
B
C
B
D
A
C
D
D

PROBLEM
1.
Basic Personal
Additional
Total

2.

Basic Personal
Additional
Total

50,000.00
25,000.00
75,000.00

50,000.00
0.00
50,000.00

3.
Basic Personal
Additional
Total

4.

Basic Personal
Additional
Total

50,000.00
0.00
50,000.00

50,000.00
0.00
50,000.00

5.
Basic Personal
Additional
Total

50,000.00
0.00
50,000.00