Question 1 Sick Leave (15 days) 18,000

The following items shall not be included in gross income and Rice Subsidy, 66,000
shall be exempt from income tax (choose the incorrect one) Laundry Allowance 4,000
Correct answer: Forgiveness of indebtedness Christmas cash gift 22,000
Performance-Based Bonus 20,000
Question 2 Employee Achievement Awards in kind 20,000
Marlon was hit by a car driven by Jaysee causing severe Uniform Allowance 6,000
injuries to the former. It was found out during trial that the 13th Month Pay 65,000
driver was drunk at the time of the incident.
After trial, the court awarded the following: How much is the total De Minimis Benefits?
• P1,500,000 actual damages for hospitalization
• P300,000 exemplary damages Correct answer: 239,000
• P500,000 for loss of income,; and
• P100,000 moral damages. Question 7
Marlon also received a cash gift of P100,000 from Jaysee. The In 2025, Vikings Corporation purchased a residential house
taxable income received by Marlon is: and lot for P2,300,000. The property was later sold to its
General Manager for P1,960,000. The fair market value per
Correct answer: P500,000 Assessor’s Office is P2,200,000 while the zonal value is
P2,100,000. How much is the fringe benefit tax?

Question 3 Correct answer: P129,231

The following interest are non-deductible, except?
Question 8
Correct answer: Interest related to indebtedness incurred to Statement 1: The taxpayer has the burden of justifying the
finance working capital requirements allowance of any deduction claimed.
Statement 2: Deductions are strictly construed against the
Question 4 government.
In the year 2023, Bank of Philippine Archipelago Inc. paid for
the quarterly rental of a residential house of its branch Correct answer: Statement 1 is true but statement 2 is false
manager, Mr. Tolentino, amounting to P90,000. How much is
the fringe benefit tax expense? Question 9
FRANKIA Manufacturing Corporation hired Sia, Cabarles &
Correct answer: P24,230 Trinidad (SCT & Co.) for its annual financial statement audit
for 2018 taxable year. FRANKIA agreed to pay SCT & Co.
Question 5 for its services amounting to P2,000,000. Such payment to
RRO Corporation is engaged in the sale of goods and services SCT & Co. shall be
with net sales/net revenue of P3,000,000 and P2,000,000
respectively. The actual entertainment, amusement and Correct answer: Exempt from withholding tax
recreational (EAR) expense for the taxable year totalled
P30,000.
How much is the deductible EAR expense?
Correct answer: P27,000

Question 10
Lagertha, during the year 2025, received the following
benefits:
Medical benefits P60,000
Monetized leave credits:
Vacation (13 days) 23,000
Question 6 Sick Leave (15 days) 18,000
Lagertha, during the year 2025, received the following Rice Subsidy, 66,000
benefits: Laundry Allowance 4,000
Medical benefits P60,000 Christmas cash gift 22,000
Monetized leave credits: Performance-Based Bonus 20,000
Vacation (13 days) 23,000 Employee Achievement Awards in kind 20,000
Uniform Allowance 6,000
13th Month Pay 65,000
Question 14
How Much is the Income taxable due? Rain, a member of the Philippine boxing team received the
following during the taxable year:
Correct answer: nil Prize for winning gold in the Asian games P500,000
Winnings from Philippine lotto 400,000
Prize – Mc Donald raffle promo 10,000
Question 11 Cash gift from SM Foundation 100,000
On January 2, 2018 Mr. B contracted a 1-year P100,000 loan
from Metrobank for the purchase of computers. The The amount not subject to income tax is
equipment which had a depreciable life of eight (8) years were
acquired on April 1, 2018. The interest expense for one (1) Correct answer: P600,000
year amounted P15,000.

In the same year, his bank deposit with PNB earned an interest Question 15
income of P2,000. During the year, he incurred an interest SMJB (nonstock and nonprofit charitable institution) paid for
expense on unpaid business tax of P600. The deductible its regular repairs and maintenance of its facilities to ASGS.
interest expense of Mr. B in 2018 is – As the accountant of SMJB Charity, how much withholding
tax will you impose to ASGS?
Correct answer: P14,940
Correct answer: 2% withholding tax on its gross payment
Question 12
Shizune insured her life with Konoha Insurance company. Question 16
Under the contract, she will pay a monthly premium of P2,000 The following are examples of nontaxable compensation for
for 10 years. In case of death before the 10th year, her injuries, except.
beneficiary will receive an indemnification in the amount of
P150,000. If she is still living on the 10th year, she will Correct answer: Compensatory damages for unrealized profits.
receive P500,000. If Corazon dies on the 5th year, her
beneficiary will report an income of:

Correct answer: nil

Question 17
Lagertha, during the year 2025, received the following
benefits:
Medical benefits P60,000
Monetized leave credits:
Vacation (13 days) 23,000
Question 13 Sick Leave (15 days) 18,000
Lagertha, during the year 2025, received the following Rice Subsidy, 66,000
benefits: Laundry Allowance 4,000
Medical benefits P60,000 Christmas cash gift 22,000
Monetized leave credits: Performance-Based Bonus 20,000
Vacation (13 days) 23,000 Employee Achievement Awards in kind 20,000
Sick Leave (15 days) 18,000 Uniform Allowance 6,000
Rice Subsidy, 66,000 13th Month Pay 65,000
Laundry Allowance 4,000
Christmas cash gift 22,000 How much is the total 13th Month Pay & other Benefits?
Performance-Based Bonus 20,000
Employee Achievement Awards in kind 20,000 Correct answer: 212,400
Uniform Allowance 6,000
13th Month Pay 65,000 Question 18
Roy borrowed money from the Bank amounting to
How much is the Exempt de Minimis Benefits? P1,000,000 at an annual interest rate of 7%. He invested the
money in deposit substitutes earning annual interest income of
Correct answer: 91,600 8%. How much is the deductible interest?
 Santiago is 12 years. Which of the following will Mr. Santiago
Correct answer: P43,600 be able to include in his gross income?

Correct answer: P20,000

Question 19
Which of the following can be deducted from gross income in Question 26
the year paid or incurred? All of the following, except one, are not deductible from
gross income
Correct answer: Repair that keep the property in its ordinarily
efficient operating condition Correct answer: Premiums paid on a life insurance policy of a
rank-and-file employee with the latter's children as the
Question 20 appointed beneficiary
Lagertha, during the year 2025, received the following
benefits:
Medical benefits P60,000
Monetized leave credits:
Vacation (13 days) 23,000
Sick Leave (15 days) 18,000
Rice Subsidy, 66,000
Laundry Allowance 4,000
Christmas cash gift 22,000
Performance-Based Bonus 20,000 Question 27
Employee Achievement Awards in kind 20,000 Brianne Corporation has incurred rent expense amounting to
Uniform Allowance 6,000 P500,000. Brianne paid the lessor the gross amount of
13th Month Pay 65,000 P500,000 without deducting 5% withholding tax. How much
Compensation Income 250,000 rent can Brianne claim as allowable deduction from its gross
How Much is the Income taxable due? income?
Correct answer: 24,480
Question 21 Correct answer: nil
How shall interest related to acquisition of property used in
trade, business or profession be treated? Question 28
Mapanlinlang Corporation was assessed by the BIR due to
Correct answer: At the option of the taxpayer, may be claimed underpayment of Percentage Taxes. The Assessment Notice
as outright expense or capitalize disclosed the following:

Question 22 Basic Tax P 1,000,000

Which of the following expenses is not deductible from gross Surcharge 250,000
income? Interest 200,000
Penalties 25,000
Correct answer: Bribes, kickbacks and other similar payments. Total P 1,475,000

Question 23 It also generated interest income from bank deposits

How much is the allowable deduction from business income amounting to P100,000. How much is the deductible taxes?
of a domestic corporation which granted and paid P65,000
fringe benefits to its key officers in 2018? Correct answer: P1,000,000
Correct answer: P100,000
Question 29
Question 24 An individual taxpayer has the following data for the year
One of the requirements in order for expenses to be claimed 2018:
as deduction for income tax purposes is that, it should be Interest paid, business loan P100,000
subject to withholding tax if applicable. What is the Interest paid, loan to build residential house 500,000
withholding tax rate applicable to rental payments? Interest expense on delinquency taxes (business related)
Correct answer: 5% 50,000
Interest income – BPI Makati, net 24,000
Question 25
Mr. Santiago purchased a life annuity for P100,000 which For income tax purposes, the deductible interest expense shall
will pay him P10,000 a year. The life expectancy of Mr. be
Correct answer: P140,100 Correct answer: P31,500

Question 30
In the conduct of his business in 2013, Modesto found it Question 34
necessary to give gifts to the government officials with whom Which of the following is not a characteristic of a deduction?
he had official dealings.
Correct answer: An immunity or privilege, a freedom from a
Response: Irrespective of the value, the gifts are considered as charge or burden to which others are subjected.
bribes and not allowed to be deductible.
Question 35
Correct answer: Irrespective of the value, the gifts are On January 1, 2014, Mr. Gamamichi leased his vacant lot for
considered as bribes and not allowed to be deductible. a period of 12 years to Mr. J at an annual rate of P2,400,000. It
was also agreed that Mr. Gamamichi will pay the following:
Question 31
Mapanlinlang Corporation was assessed by the BIR due to • P4,800,000 representing rental payment for year 2014 and
underpayment of Percentage Taxes. The Assessment Notice 2015.
disclosed the followingg: • Security deposit of P2,400,000.
• Annual real property tax of P30,000.
Basic Tax P 1,000,000
Surcharge 250,000 The lease contract provides, among others that the lessee will
Interest 200,000 construct a 5-storey building for parking purposes at a cost of
Penalties 25,000 P9,500,000. Ownership of the building shall belong to the
Total P 1,475,000 lessor upon the expiration or termination of the lease contract.

It also generated interest income from bank deposits The building was completed on July 1, 2016 with an estimated
amounting to P100,000. How much is the deductible interest? useful life of 15 years. How much can Mr. Gamamichi claim
as deduction in relation to the lease in 2014?
Correct answer: P200,000
Correct answer: P2,430,000
Score: 0 out of 1 No
Question 36
Question 32 Mugino, single received the following during the taxable
Hatake, single received the following during the taxable year: year:
Proceeds of his life insurance paid at an Proceeds of his life insurance paid at an
annual premium of P15,000 within 25 years P2,000,000 annual premium of P15,000 within 25 years P2,000,000
Proceeds of his mother’s life insurance paid Proceeds of his mother’s life insurance paid
at an annual premium of P10,000 within 20 years 1,000,0000 at an annual premium of P10,000 within 20 years 1,000,0000
House and lot inherited from his mother 4,000,000 House and lot inherited from his mother 4,000,000
Rent income from inherited properties 200,000 Rent income from inherited properties 200,000

For income tax purposes, how much of the above items must For income tax purposes, how much of the above items must
be excluded in his gross income? be included in his gross income?

Correct answer: P5,375,000

Correct answer: P1,825,000
Question 33
Mario Bros Corporation, revealed the following data:
Salaries and wages (net of SSS and philhealth
contributions amounting to 25,000 and withholding
tax of 150,000) 785,000
Allowance, not subject to liquidation 58,500 Question 37
Gasoline allowance, subject to liquidation 19,500 Statement 1: Exclusions are receipts which are excluded from
13th month pay 80,000 the gross income, hence, do not form part of the gross income.
Statement 2: Exclusions are items or amounts allowed to be
Based on the above problem, the fringe benefit tax due is – subtracted from gross income to arrive at the taxable income.
Statement 3: Deductions from gross income are not presumed.
Correct answer: No to both questions.
Correct answer: Only statement 2 is false

Question 38
Lagertha, during the year 2025, received the following
benefits:
Medical benefits P60,000
Monetized leave credits:
Vacation (13 days) 23,000
Sick Leave (15 days) 18,000
Rice Subsidy, 66,000
Laundry Allowance 4,000
Christmas cash gift 22,000
Performance-Based Bonus 20,000
Employee Achievement Awards in kind 20,000
Uniform Allowance 6,000
13th Month Pay 65,000

How Much is the Taxable Income?

Correct answer: 122,400

Question 39
On January 1, 2014, Mr. Gamamichi leased his vacant lot for
a period of 12 years to Mr. J at an annual rate of P2,400,000. It
was also agreed that Mr. Gamamichi will pay the following:

• P4,800,000 representing rental payment for year 2014 and

2015.
• Security deposit of P2,400,000.
• Annual real property tax of P30,000.

The lease contract provides, among others that the lessee will
construct a 5-storey building for parking purposes at a cost of
P9,500,000. Ownership of the building shall belong to the
lessor upon the expiration or termination of the lease contract.

The building was completed on July 1, 2016 with an estimated QUIZ no. 7
useful life of 15 years. How much can Mr. Gamamichi claim Question 1
as deduction in relation to the lease in 2016? All of the following, except one, are not deductible from
gross income

Correct answer: P2,930,000 Correct answer: Premiums paid on a life insurance policy of a
rank-and-file employee with the latter's children as the
Question 40 appointed beneficiary
XYZ Co. took two key men insurance on the life of its
President, Mr. A. In one policy, the beneficiary is the
corporation to compensate it for its expected loss in case of Question 2
death of its president. The other policy designates Mr. A's wife One of the requirements in order for expenses to be claimed
as its irrevocable beneficiary. as deduction for income tax purposes is that, it should be
subject to withholding tax if applicable. What is the
Question 1-Are the insurance premiums paid by XYZ Co. in withholding tax rate applicable to rental payments?
both policies deductible?
Question 2- Will the insurance proceeds be treated as income Correct answer: 5%
subject to tax by the corporation and by the wife?
Question 3 It also generated interest income from bank deposits
Statement 1: Revenue expenditures are period costs that are amounting to P100,000. How much is the deductible interest?
related to a particular period of time of business operation.
Statement 2: Capital expenditures are nonrecurring Correct answer: P200,000
expenditures related to acquisition of depreciable assets to be
used in the business.
Question 7
Correct answer: Statements 1 and 2 are true In 2018, Alpha Corp., a calendar-year corporation,
contributed P80,000 to a qualified charitable organization.
Question 4 Alpha’s net income was P820,000. In 2018 what amount can
On July 1, 2015, a taxpayer purchased for P500,000 an Cable deduct as charitable contributions?
automobile which will be used exclusively for his practice. He
deducted annual depreciation on the basis of an estimated Correct answer: P45,000
useful life of five (5) years. On July 1, 2018, the automobile
was partially damaged in an accidental collision with another Question 8
vehicle. The cost of repairs Bobadilla Charity (nonstock and nonprofit charitable
amounted to P100,000. The taxpayer received insurance institution) paid for its regular repairs and maintenance of its
proceeds of P70,000 to cover the loss. facilities to Johnson Manpower Services (JMS). As the
accountant of Bobadilla Charity, how much withholding tax
How much is the deductible loss? will you impose to JMS?

Correct answer: P30,000 Correct answer: 2% withholding tax on its gross payment

Question 9
XYZ Co. took two key men insurance on the life of its
President, Mr. A. In one policy, the beneficiary is the
corporation to compensate it for its expected loss in case of
death of its president. The other policy designates Mr. A's wife
as its irrevocable beneficiary.

Question 1-Are the insurance premiums paid by XYZ Co. in

Question 5 both policies deductible?
Sira Sira Company had an old warehouse which had a cost of Question 2- Will the insurance proceeds be treated as income
P1,200,000. The company demolished the warehouse when it subject to tax by the corporation and by the wife?
had a book value of P200,000 in order to construct a new and
bigger warehouse. The demolition cost amounted to P25,000 Correct answer: No to both questions.
while the scrap were sold for P10,000.

How much is the deductible loss in arriving at taxable Question 10

income? De Leon Manufacturing Corporation hired Sia, Cabarles &
Trinidad (SCT & Co.) for its annual financial statement audit
Correct answer: P215,000 for 2018 taxable year. De Leon agreed to pay SCT & Co. for
its services amounting to P2,000,000. Such payment to SCT &
Co. shall be
Question 6
Mapanlinlang Corporation was assessed by the BIR due to Correct answer: Exempt from withholding tax
underpayment of Percentage Taxes. The Assessment Notice
disclosed the following: Question 11
Statement 1: Exclusions are receipts which are excluded from
Basic Tax P 1,000,000 the gross income, hence, do not form part of the gross income.
Surcharge 250,000 Statement 2: Exclusions are items or amounts allowed to be
Interest 200,000 subtracted from gross income to arrive at the taxable income.
Penalties 25,000 Statement 3: Deductions from gross income are not presumed.

Total P 1,475,000 Correct answer: Only statement 2 is false

 rent can Brianne claim as allowable deduction from its gross
Question 12 income?
Which of the following is allowable compensation expense of
an employer?
Correct answer: nil
I. Salary of employee paid for a limited period of time after his
death to his widow is allowable deduction of the employer.
II. Manager’s expense account subject to fringe benefit tax.

Response: I only
Question 17
Correct answer: I and II Statement 1: The taxpayer has the burden of justifying the
allowance of any deduction claimed.
Score: 0 out of 1 No Statement 2: Deductions are strictly construed against the
government
Question 13
RRO Corporation is engaged in the sale of goods and services Correct answer: Statement 1 is true but statement 2 is false
with net sales/net revenue of P3,000,000 and P2,000,000
respectively. The actual entertainment, amusement and
recreational (EAR) expense for the taxable year totalled Question 18
P30,000. On January 2, 2018 Mr. B contracted a 1-year P100,000 loan
from Metrobank for the purchase of computers. The
How much is the deductible EAR expense? equipment which had a depreciable life of eight (8) years were
acquired on April 1, 2018. The interest expense for one (1)
Correct answer: P27,000 year amounted P15,000.

Question 14 In the same year, his bank deposit with PNB earned an interest
Which of the following items of expenses is not deductible? income of P2,000. During the year, he incurred an interest
expense on unpaid
Correct answer: Bonuses paid in good faith as additional business tax of P600.
compensation for services rendered.
The deductible interest expense of Mr. B in 2018 is
Question 15
On January 1, 2014, Mr. V leased his vacant lot for a period Correct answer: P14,940
of 12 years to Mr. J at an annual rate of P2,400,000. It was
also agreed that Mr. J will pay the following: Question 19
-P4,800,000 representing rental payment for year 2014 and Which of the following is not a characteristic of a deduction?
2015.
-Security deposit of P2,400,000. Correct answer: An immunity or privilege, a freedom from a
-Annual real property tax of P30,000. charge or burden to which others are subjected.

The lease contract provides, among others that the lessee will Score: 1 out of 1 Yes
construct a 5-storey building for parking purposes at a cost of
P9,500,000. Ownership of the building shall belong to the Question 20
lessor upon the expiration or termination of the lease contract. Emang acquired a property for use in her business. After a
devastating typhoon, the machinery suffered partial damage.
The building was completed on July 1, 2016 with an estimated The following were made available:
useful life of 15 years. How much can Mr. J claim as
deduction in relation to the lease in 2014? Cost P500,000
Accumulated depreciation 300,000
Correct answer: P2,430,000 Restoration cost 250,000
Estimated useful life 5 years
Question 16
Brianne Corporation has incurred rent expense amounting to How much is the deductible loss?
P500,000. Brianne paid the lessor the gross amount of
P500,000 without deducting 5% withholding tax. How much Correct answer: P200,000
 Response: False

Question 8
In the conduct of his business in 2013, Modesto found it
QUIZ no 6 necessarily to give gifts to the government officials with
Question 1 whom he had official dealings.
XYZ Co. took two key men insurance on the life of its
President, Mr. A. In one policy, the beneficiary is the Response: These gifts are deductible expenses subject to the
corporation to compensate it for its expected loss in case of substantiation rule
death of its president. The other policy designates Mr. A's wife
as its irrevocable beneficiary. Question 9
Capital expenditures are non-recurring expenditures related to
Question 1. Are the insurance premium paid by XYZ Co. in acquisition or depreciable assets to be used in the business
both policies deductible?
Question 2. Will the insurance proceeds be treated as income Response: True
subject to tax by the corporation and by the wife?
Question 10
Response: Yes to first and No to second question Which of the following can be deducted from gross income in
the year paid or incurred?
Question 2
Exclusions are receipts which are excluded from the gross Response: Repair that keep the property in its ordinarily
income, hence do not form part of the gross income efficient operating condition

Response: True Question 11

One of the requirements in order for expenses to be claimed
Question 3 as deduction for income tax purposes is that, it should be
All of the following, except one, are not deductible from subject to withholding tax if applicable. What is the
gross income withholding tax rate applicable for rental payments?

Response: Premiums paid on a life insurance policy of a rank- Response: 5%

and file employee with the latter's children as the appointed
beneficiary Question 12
The taxpayer has the burden of justifying the allowance of
Question 4 any deduction claimed.
Which of the following expenses is not deductible from gross
income? Response: True

Response: Bribes, kickbacks and other similar payments Question 13

Deductions from gross income are not presumed
Question 5
Roy borrowed money from the Bank amounting to Response: True
P1,000,000 at an annual interest rate of 7%. He invested the
money in deposit substitutes earning annual interest income of Question 14
8%. How much is the deductible interest? Deductions are strictly construed against the government

Response: 26,400 Response: True

Question 6 Question 15
Which of the following items of expenses is not deductible? Revenue expenditures are period costs that are related to a
particular period of time of business operation.
Response: Pension and compensation for injuries if
compensated for by insurance Response: True

Question 7 Question 16
Exclusions are items or amounts allowed to be subtracted How shall interest related to acquisition of property used in
from gross income to arrive at the taxable income trade, business or profession be treated?
Response: At the option of the taxpayer, may be claimed as
outright expense or capitalize

Question 17
Deductions is an immunity or privilege, a freedom from a
charge or burden to which others are subjected.

Response: False

Question 18
Shiutee Corporation has incurred rent expense amounting to
P500,000.00. Shiutee paid the lessor the gross amount of
P500,000.00 without deducting the applicable withholding tax.
How much rent can Shiutee claim as allowable deduction from
its gross income?

Response: nil

Question 19
An individual taxpayer has the following data for the year
2018:

Interest paid, business loan P 100,000

Interest paid, loan to build residential house 500,000
Interest expense on deliquency taxes ( business related) 50,000
Interest income- BPI Makati, net 24,000

For income tax purposes, the deductible interest expense shall

be

Response: 140,100
QUIZ NO 5
Question 20
Which of the following is allowable compensation expense of Question 1
an employer? Ironside Inc. owns a condominium unit. During the year
2023, it allowed its CEO to use the said property as his
I. Salary of employee paid for a limited period of time after his residence. The zonal value of the property is P10,000,000
death to his widow is allowable deduction of the employer while its fair market value as shown in its current Real
II. Manager's expense account subject to fringe benefit tax Property Tax Declaration amounts to P8,000,000.
How much is the fringe benefit expense?
Response: I only
Correct answer: nil

Question 2
Mr. Santiago purchased a life annuity for P100,000 which
will pay him P10,000 a year. The life expectancy of Mr.
Santiago is 12 years. Which of the following will Mr. Santiago
be able to exclude from his gross income?

Correct answer: P100,000

Question 3
Lindesfarne Inc. owns a condominium unit. During the year
2023, it allowed its CEO to use the said property as his
residence. The zonal value of the property is P10,000,000
while its fair market value as shown in its current Real In 2025, RAGNAR Corporation purchased a residential house
Property Tax Declaration amounts to P8,000,000. and lot for P2,300,000. The property was later sold to its
How much is the quarterly fringe benefit tax expense? General Manager for P1,980,000. The fair market value per
Assessor’s Office is P2,200,000 while the zonal value is
Correct answer: P33,654 P2,100,000.
How much is the fringe benefit tax?
Question 4
A, during the year 2020, received the following benefits: Correct answer: P118,462
Medical benefits P 55,000 per year
Monetized leave credits:
Vacation (13 days) 13,000
Sick Leave (15 days) 15,000
Rice Subsidy, Sinandomeng 5,300 per month
Laundry Allowance 270 per month
Christmas cash gift 22,000
Performance-Based Bonus 20,000
Employee Achievement Awards, cash 12, 000 Question 9
Uniform Allowance 6,000 Pedro, single received the following during the taxable year:
13th Month Pay 50,000 Proceeds of his life insurance paid at an annual
How much is the Taxable Amount? premium of P15,000 within 25 years P2,000,000
Proceeds of his mother’s life insurance
Correct answer: 60,300 paid at an annual premium of P10,000 within 20 years
1,000,0000
Question 5 House and lot inherited from his mother 4,000,000
Corazon insured her life with Malayan Insurance company. Rent income from inherited properties 200,000
Under the contract, she will pay a monthly premium of P2,000 For income tax purposes, how much of the above items must
for 10 years. In case of death before the 10th year, her be included in his gross income?
beneficiary will receive an indemnification in the amount of
P150,000. If she is still living on the 10th year, she will Correct answer: P1,825,000
receive P500,000. If Corazon dies on the 5th year, her
beneficiary will report an income of: Question 10
In 2025, RAGNAR Corporation purchased a residential house
Correct answer: nil and lot for P2,300,000. The property was later sold to its
General Manager for P1,980,000. The fair market value per
Question 6 Assessor’s Office is P2,200,000 while the zonal value is
Wessex Kingdom Inc. owns a condominium unit. During the P2,100,000.
year 2023, it allowed its CEO to use the said property as his Assuming the selling price is P2,400,000, how much is the
residence. The zonal value of the property is P10,000,000 fringe benefit tax?
while its fair market value as shown in its current Real
Property Tax Declaration amounts to P8,000,000. The Correct answer: nil
acquisition cost of the residential property is P7,000,000 and
the remaining useful life is 15 years. Question 11
How much is the fringe benefit expense? A, during the year 2020, received the following benefits:
Medical benefits P 55,000 per year
Correct answer: P200,000 Monetized leave credits:
Vacation (13 days) 13,000
Question 7 Sick Leave (15 days) 15,000
JJ, a member of the Philippine boxing team received the Rice Subsidy, Sinandomeng 5,300 per month
following during the taxable year: Prize for winning gold in Laundry Allowance 270 per month
the Asian games P500,000 Athlete of the year award 100,000 Christmas cash gift 22,000
Winnings from Philippine lotto 400,00 Prize – Mc Donald Performance-Based Bonus 20,000
raffle promo 10,000 Cash gift from SM Foundation 100,000 Employee Achievement Awards, cash 12, 000
The amount not subject to income tax is Uniform Allowance 6,000
13th Month Pay 50,000
Correct answer: P700,000 Aside from the benefits received, A also received a total of
300,000 as compensation Income for the year 2020.
Question 8 how Much is the tax due of A for 2020?
Correct answer: 22,060 Question 16
An operator of an illegal horse betting business, single, has
the following data:
Receipt from illegal bets P600,000
Rent of space where bets are received,
gross of 5% withholding tax 120,000
Salaries of assistants, gross of creditable 100,000
Question 12 withholding tax
A, during the year 2020, received the following benefits: Bribe money to obtain protection
Medical benefits P 55,000 per year from arrest and prosecution 50,000
Monetized leave credits: How much is the taxable income
Vacation (13 days) 13,000
Sick Leave (15 days) 15,000 Correct answer: P380,000
Rice Subsidy, Sinandomeng 5,300 per month
Laundry Allowance 270 per month Question 17
Christmas cash gift 22,000 A, during the year 2020, received the following benefits:
Performance-Based Bonus 20,000 Medical benefits P 55,000 per year
Employee Achievement Awards, cash 12, 000 Monetized leave credits:
Uniform Allowance 6,000 Vacation (13 days) 13,000
13th Month Pay 50,000 Sick Leave (15 days) 15,000
Rice Subsidy, Sinandomeng 5,300 per month
What Amount is the total amount of 13th Month Pay and Laundry Allowance 270 per month
Other Benefits? Christmas cash gift 22,000
Performance-Based Bonus 20,000
Correct answer: 150,300 Employee Achievement Awards, cash 12, 000
Uniform Allowance 6,000
Question 13 13th Month Pay 50,000
Mikaela Flower Shop Inc. purchased a motor vehicle in 2018 How much is the Exempt de Minimis Benefits?
for the use of its manager, Mike. It was registered under
Mike’s name. The cost of the vehicle was P400,000. The Correct answer: 38,000
vehicle will be partly used for the benefit of the Company.
How much is the fringe benefit tax? Question 18
Correct answer: P215,385 In the year 2023, Bank of Philippine Archipelago Inc. paid for
the quarterly rental of a residential house of its branch
Question 14 manager, Mr. Tolentino, amounting to P90,000.
In the year 2023, Bank of Philippine Archipelago Inc. paid for How much is the fringe benefit expense?
the quarterly rental of a residential house of its branch
manager, Mr. Tolentino, amounting to P90,000. Correct answer: P90,000
How much is the fringe benefit tax?
Correct answer: P24,230 Question 19
How much is the allowable deduction from business income
Question 15 of a domestic corporation which granted and paid P97,500
Ivar Corporation, revealed the following data: fringe benefits to its key officers in 2018?

Salaries and wages (net of SSS and philhealth Correct answer: P150,000
contributions amounting to 25,000 and
withholding tax of 150,000) 785,000
Allowance, not subject to liquidation 60,000
Gasoline allowance, subject to liquidation 19,500
13th month pay 80,000

Based on the above problem, the fringe benefit tax due is – Question 20
A, during the year 2020, received the following benefits:
Correct answer: P32,307 Medical benefits P 55,000 per year
Monetized leave credits:
Vacation (13 days) 13,000
Sick Leave (15 days) 15,000
Rice Subsidy, Sinandomeng 5,300 per month
Laundry Allowance 270 per month
Christmas cash gift 22,000
Performance-Based Bonus 20,000
Employee Achievement Awards, cash 12, 000
Uniform Allowance 6,000
13th Month Pay 50,000

How much is A's Tax Due for the year 2020?

Correct answer: nil