Professional Documents
Culture Documents
INCOME TAXATION
PROBLEM 1
1800000
1000000
400000
Other Income:
Bank interest income net
8000
Prizes from :
Supermarket
10000
Rustans
20000
Dividend from:
Domestic Corporation
Foreign Corporation
9000
10000
Page 1
TAX1-PROBLEMS 2
INCOME TAXATION
PROBLEM 2
200000
30000
8000
10000
7000
10000
6000
5000
3000
Other Transactions
Sale of Old Refrigerator
Cost of old refrigerator
1000
3000
.
200
500
3000
1000
The refrigerator, newspaper and wedding ring were acquired 5 yrs ago
If A is married but his wife died last year and they have 6 legitimate children (eldest is 3
years old) but 3 died last year 2015 and 2 died in 2016. How much is his taxable income if
the income above is realized in 2016?
Page 2
TAX1-PROBLEMS 3
INCOME TAXATION
PROBLEM 3
160000
16000
8000
10000
6000
4000
4000
Other Transactions:
Prizes received during the year
Best Athlete- SEA Games
Raffle draws-SM Philippines
USA-Supermarket
10000
10000
20000
Dividend from:
Domestic Corporation
Foreign Corporation
9000
10000
10000
12000
12000
10000
6000
10000
11000
12000
8000
A is single, supporting his parents and two illegitimate children and the mother of his
illegitimate children. How much is his taxable income?
ROZELE VICTORIA Y. DONES
Page 3
TAX1-PROBLEMS 4
INCOME TAXATION
PROBLEM 4
200000
1000
2000
3000
4000
1600 a month
6000 for the year
4000 a year
12000 a year
10000
15000
20000
20000
20000
20000
1000 a month
6000
4000
8000
7000
6000
5000
4000
2000
5000
10000
20000
If A is married not supporting his wife, his mother, his father and the
other children of his parents (5) living and dependent (all minor) on A.
Determine the taxable income.
Page 4
TAX1-PROBLEMS 5
INCOME TAXATION
PROBLEM 5
A has (2 )sources of income from business and from employment. He recieved the following
from his employer:
Salary (net of payroll deduction)
220000
2000 a month
10000 a year
15000
10000
10000
20000
20000
20000
18000
20000
10000
10000
10000
6000
8000
4000
240000
120000
24000
6000
40000
2000
2000
Page 5
TAX1-PROBLEMS 6
INCOME TAXATION
PROBLEM 6
1000000
200000
100000
100000
300000
10000000
2000000
1000000
1000000
3000000
1000000
200000
100000
50000
300000
10000000
2000000
1000000
500000
3000000
Required
1) Income to be reported on the sale of necklace
2) Capital gains of idle land
3) income to be reported for sale of ring
4) Capital gains for sale of commercial land
Page 6
TAX1-PROBLEMS 7
INCOME TAXATION
PROBLEM 7
1000000
10000000
100000
1000000
50000
1000000
100000
1000000
Acquisition cost
bracelet
land
200000
2000000
Required
(1) Determine the income to be reported in 2016
(2) Capital gains tax to be paid in 2016
Page 7
TAX1-PROBLEMS 8
INCOME TAXATION
PROBLEM 8
5000000
3000000
50000
500000
200000
20000
40000
30000
50000
100000
100000
100000
800000
Page 8
TAX1-PROBLEMS 9
INCOME TAXATION
PROBLEM 9
3000000
10000 a month for
360000
240000
18000
2000
3000
80000
4000
30000
120000
100000
1000000
100000
If Mr. A is married with 10 legitimate children the eldest is 4 years old. Determine the
taxable income
Page 9