Raid Quiz Saidosd Recit

What would be the allowable deduction for P10,000 contribution made by a resident citizen to a
charitable institution, from his P60,000 net income before contribution?

ABC Corporation had the following data in 2019:
• Gross income, P500,000
• Deductions (except contributions), P400,000
• Donation to Cultural Center of the Philippines, P3,000
• Donation to Rehabilitation of Veterans, Inc., P20,000
• Donation to Roman Catholic Church, P1,500
• Donations to victims of Cagayan flashfloods, P5,000
How much is the taxable income of ABC Corporation
ABC Corporation is engaged in the sale of goods and services with net sales and net revenue of
P2,000,000 and P1,000,000 respectively. The actual entertainment, amusement and recreation expense
incurred during a taxable quarter totaled to P30,000. The entertainment, amusement and recreation
expense not allowed as deduction from gross income for the quarter is:
ABC Company had an old warehouse which had a cost of P1,200,000. The company
demolished the warehouse when it had a book value of P200,000 in order to construct a new and bigger
warehouse. The demolition cost amounted to P25,000 while the scrap was sold for P10,000.
How much is the deductible loss in arriving at taxable income?
A had the following records of income, expenses and losses during the year:
• Wagering gains, P50,000
• Wagering losses, P50,000
• Temporary decline in value of stocks of YU Corp., P12,500
• Sale of typewriters which were rendered obsolete by computers (book value, P115
How much loss is deductible by A?
ABC Corporation is a service enterprise on the accrual basis of accounting. On July 1, 2020, it borrowed
P100,000 from a bank with annual interest of 20% and maturity of one year. The bank deducted P20,000
and released an amount of P80,000 on the loan. How much is the deduction for interest expense in 2020?
ABC Corporation put up a qualified retirement plan for its employees. ABC Corp. paid the following
amounts for the first three years of the plan.
Contributions Past Years Current Years
2018 P100,000 P50,000
2019 P60,000 P50,000
2020 P40,000 P50,000
What is the deductible pension expense of ABC Corporation for 2019?
This study source was downloaded by 100000842849909 from CourseHero.com on 03-12-2022 23:42:44 GMT -06:00
https://www.coursehero.com/file/121823464/RAID-QUIZ-SAIDOSD-RECITdocx/
ABC Corporation’s equipment were completely destroyed by fire which broke out the company’s
warehouse. The total acquisition cost of the equipment is P470,000 with a total accumulated depreciation
of P360,000. ABC Corporation received P250,000 from insurance within the same year. How much is the
claimable deductible loss of ABC Corporation? ABC Corporation’s equipment were completely destroyed
by fire which broke out the company’s warehouse. The total acquisition cost of the equipment is P470,000
with a total accumulated depreciation of P360,000. ABC Corporation received P250,000 from insurance
within the same year. How much is the claimable deductible loss of ABC Corporation?
A had the following data during the year:
• Gross income from business, P1,000,000
• Capital gain, P50,000
• Capital loss, P20,000
• Deductions, P400,000
• Donation to an accredited NGO, P30,000
• Donation to church, P20,000
What is the taxable income of A if she also has a compensation income during the year of P40,000?
ABC Corporation paid P35,000 fringe benefit tax for the purchase of merchandise used by the family of
one of its company officers. How much is the deductible tax expense against gross income?
In 2020, ABC Corporation incurred the following expenses in connection with the conduct of its business:
• P100,000: Plane tickets and hotel bills of its employees who were sent to business seminars.
• P136,000: Transportation allowances of its officers from home to office and vice versa as part of their
employment contract net of P64,000 fringe benefits tax
• P80,000: Transportation expenses messengers from office to several clients without supporting
evidences
How much is the allowable expense that could be claimed by ABC Corporation
In 2020, ABC Corporation, a domestic corporation, has a taxable income from the Philippines of
P200,000, and from USA, P300,000. Income tax paid to US government for taxable income derived from
USA, P110,000. The tax credit on income tax paid to the US government is:
A, a gambling addict, won P90,000 from cockfighting during the year. However, he also suffered losses
from other gambling activities amounting to P200,000. How much is the deductible loss?
In 2019, A’s residence was totally destroyed by fire. The property had an adjusted basis and a fair market
value of P130,000 before the fire. During 2019, A received insurance reimbursement of P120,000 for the
destruction of his house. A’s 2019 gross income was P70,000. What amount of fire loss was A entitled to
claim as an itemized deduction on his 2019 income tax return?
ABC Corporation contributed P500,000 for its pension fund inclusive of P200,000 funding of current
service cost. how much is the deductible pension expense?
A, a resident citizen, has the following items of income and deductions for 2019;
• Salary, P350,000
• Loss suffered as a result of flood by a storm, P150,000
• Personal expenses, P50,000
• Interest expense on loans, P3,500
What is the amount that A may deduct from her 2019 income for tax purposes?
A domestic corporation has the following data on income and expenses
P6,200,000 Gross business income
P2,500,000 Deductions including S$S and Philhealth contributions of P150,000
P100,000 Contributions to the Government for priority project in education
P100,000 Contribution to foreign private foundation
P190,000 Contribution to domestic charitable organization
How much is the deductible charitable and other contributions?
SAID RECIT
1. ABC Corp, a domestic corporation, adopted Tarlac State University, a school operated by the
government and accredited by CHED. It entered into a Memorandum of Agreement (MOA) with the
provincial school and CHED. ABC Corp provided the following assistance:
P 300,000 Cash to improve school facilities P 500,000 Computers (acquisition cost)
The following data were taken from the books of ABC Corporation for the current year: P 10,000,000
Gross income P 3,001,000 Operating expenses (excluding the assistance)
How much is the amount deductible by ABC Corp as far as the assistance to public school is concerned?
2. ABC Corp has a soft spot for senior citizens and PWDs. As such, it hires senior citizens and PWDs to
word in the company for at least six (6) months. The following data are provided by ABC Corp:
P 15,000,000 Gross sales P 5,000,000 Cost of sales P 3,000,000 Operating expenses (including salaries of
P200,000 given to senior citizens and P500,000 given to PWDs)
How much is the special itemized deductions allowed in connection with the salary of senior citizen
employees and PWDs?
3. A partnership of lawyers renders 500 hours of pro bono legal assistance to indigent litigants. The 500
hours includes the 60 hours mandatory legal aid required by Supreme Court. The partnership charges
P10,000 per hour to paying clients. The partnership's gross income during the year amounts to
P80,000,000.
How much is the allowable special deduction that the firm can deduct from its gross professional fees?
4. A domestic corporation had the following cumulative data in 2020:

1st Quarter: P400,000 Gross income; P200,000 Expenses and Losses 2nd Quarter: P800,000 Gross
income; P420,000 Expenses and Losses 3rd Quarter: P1,000,000 Gross income; P600,000 Expenses and
Losses Year: P1,200,000 Gross income; P720,000 Expenses and Losses
How much is the 3rd Quarter taxable income if the corporation chose the Optional Standard Deduction?
5. An employer paid a total of P800,000 productivity incentive bonus to its production workers. What is
the additional productivity incentive bonus expense?
6. The gross sales of ABC Corporation for 2018 amounted to P6,000,000, with cost of sales amounting to
P4,000,000. It incurred. operating expenses amounting to P1,000,000, and on the filing of its First Quarter
Income Tax Return, it signified its intention to avail of the OSD.
How much is the OSD, if any?
7. (Based on illustrations in RR 5-2021). ABC Corporation, a domestic manufacturing corporation, has

gross sales of P100,000,000 for fiscal year ending June 30, 2021 and incurred cost of sales of
P60,000,000 and operating expenses of P17,400,000, with the following details:
Cost of Sales: P 30,000,000 Direct materials P 20,000,000 Direct labor P 10,000,000 Manufacturing
overhead
Operating Expenses: P 7,000,000 Salaries and wages P 300,000 Taxes P 3,200,000 Depreciation P
200,000 Professional fees P 3,000,000 Advertising expenses P 3,200,000 Training expenses P 500,000
Office supplies
How much is the additional allowable training expense, if any?
8. Based on the information in Item 7, how much is the taxable net income of ABC Company?
9. A, a resident citizen has the following data on income and expenses in 2021:
P 200,000 Gross compensation income P 900,000 Gross sales P 500,000 Cost of sales P 100,000 Business
expenses
He avails himself of the Optional Standard Deduction. How much is his taxable net income?
10. ABC Corporation has the following data on income and expenses for the year:
P 7,450,000 Gross sales P 100,000 Sales returns and allowances P 150,000 Sales discounts P 100,000
Interest income on trade notes receivable P 80,000 Other income P 3,625,000 Cost of sales P 3,165,000
Operating expenses with vouchers and receipts P 425,000 Operating expenses without vouchers and
receipts P 40,000 Interest income from savings deposit
How much is the taxable income using OSD?
Powered by TCPDF (www.tcpdf.org)

Raid Quiz Saidosd Recit

Uploaded by

Copyright:

Available Formats

Raid Quiz Saidosd Recit

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Raid Quiz Saidosd Recit

Uploaded by

Copyright:

Available Formats

What would be the allowable deduction for P10,000 contribution made by a resident citizen to a

charitable institution, from his P60,000 net income before contribution?

4. A domestic corporation had the following cumulative data in 2020:

7. (Based on illustrations in RR 5-2021). ABC Corporation, a domestic manufacturing corporation, has

You might also like