PHINMA- University of Iloilo
College of Accountancy
BAM 031- Second Periodical Quiz 1
Part 1: Multiple Choice
Instructions: Choose the correct letter of your answer and write it in the answer sheet
provided below.
1. Interest income from foreign currency deposit system of individual resident citizen shall be
subject to final tax of?
a. 7.5%
b. 15%
c. 20%
d. 35%
2. PCSO and lotto winnings are:
a. exempt from tax
b. subject to 20% final tax
c. exempt from tax not exceeding 10,000, any in excess will be subject to 20% final tax.
d. Half will be exempt half will be tax.
3. An individual who sell shares of stock not traded thru the local stock exchange is liable to
pay:
a. Capital gains tax of 5%
b. Capital gains tax of 5% first 100,000 and in excess 10%.
c. Capital gains tax of 15%
d. Capital gains tax of 5% if gain is less 100,000 and 10% if gain is more than 100,000.
4. Jeric owns 2,000 shares of JMFQ Corp sold at 100 per share. But with FMV of the shares
P150,000. How much is the capital gains tax assuming that the shares sold directly through
the buyers.
a. 0
b. 15,000
c. 40,000
d. 50,000
5. Assuming that the shares through PSE at initial public offering. How much is the capital
gains stock?
a. 0
b. 15,000
c. 40,000
d. 50,000
6. Sale of real property located outside the Philippines shall be
a. subject to capital gains tax of 6% on selling price or fair market value whichever is
higher.
b. subject to capital gains tax of 15% on the net capital gain
c. exempt from tax if the taxpayer is resident citizen.
d. Subject to regular income tax if taxpayer is resident citizen or domestic corporation.
7. Mr. L, acemetery lot dealer sold real properties to different buyers are as follows:
Selling Price Cost
Farm Lot 800,000 300,000 (capital asset)
Cemetery lot 45,000 20,000 (ordinary)
The house and lot were sold to acquire a condominium unit for Mr. L new principal residence
place of business. What is Mr.L’s capital gains tax?
a. 170,700
b. 48,000 = (800kx 6%)
c. 168,000
d. 50,700
8. Prizes amounting to P10,000 and below are subject to?
a. Capital Gains Tax
b. Regular Income Tax
c. Final Tax
d. None of the above
9. PCSO or lotto winnings is
a. Exempt from final tax for any taxpayer
b. Subject to regular tax for aliens
c. Subject to regular tax if the recipient is a non-resident foreign corporation
d. Subject to final tax for any taxpayer
10. To a non-resident citizen, interest income on Peso currency deposit in the
Philippines is
a. Subject to 20% final tax
b. Subject to Regular tax
c. Subject to 15% final tax
d. Exempt from tax
11. To a non-resident citizen, interest income on foreign currency deposit in the
Philippines is
a. Subject to 20% final tax
b. Subject to regular tax
c. Subject to 15% final tax
d. Exempt from tax
12. Dividend income received from the domestic corporation going to another
domestic corporation is subject to?
a. 20% final tax
b. 10% final tax
c. Regular Income Tax
d. Exempt from tax
Part II. Problem Solving
Each question corresponds two (2) points for the correct answer
1. Benjie is a shares of stock dealer sold his residential house to Ms. Papaya
for P5,000,000. Its FMV when he inherited it was P6,000,000 although its
presents FMV is P8,000,000. Also, she sold shares for P500,000 at a cost of
350,000.
Requirements: Compute for
A. CGT on sale of residential house - 480,000
B. CGT on sale of shares.- 0
2. A taxpayer earned the following interest income from various time deposits:
6-month time deposit P 8,000
2-year time deposit 12,000
5-year time deposit (10% int. Per annum) 40,000
Total interest income P 60,000
Requirements: Compute the final tax if the taxpayer is an
A. Individual -20,000 x 20%= 4,000
B. Corporation.-60,000 x20%= 12,000
C. What if the taxpayer preterminated the investment on the 3.5 years of the 5 year time
deposit?
Year 1- 8,000
Year 2- 8,000
Year 3- 8,000
Year 3.5- 4,000
Total Interest Income - 28,000 x 12%= P3,360
3. POSO Negro incurs the following interest in its savings and time deposit accounts from
the following depositors:
Depositors Amount
Resident individuals P 600,000
Non-resident aliens not engaged in business P200,000
Total accrued interest expense P800,000
Required: Compute the total final income tax to be withheld by Banko Negro.
(600KX20%)+(200Kx25%)X= 170,000
4. Mr. Dante Paya made three bets to the PCSO lotto draws. All tickets won. The details of
the winnings were:
EZ2-P 4,000 -EXEMPT -0
6/42-P10,000 (3-digit winning numbers) -EXEMPT-0
6/45-P20,000,000 Grand prize (sole winner) - 4,000,000
How much is the final Tax? 4,000,000
5. Mr. Osman is an Overseas Filipino Worker. He deposits all his savings in a savings
account under the foreign currency deposit unit (FCDU) of a domestic bank. During the
month, the savings deposit account earned $1,000 interest equivalent to P41,500.
Scenario 1: Mr. Osman deposited his savings through the account of his resident wife.
Answer: 41,500 x 15%= P6,225.00
Scenario 2: Mr. Osman deposited his savings through a joint account with his resident wife.
Answer: 41,500/2= 20,750x15%= 3,112.50
Scenario 3: Mr. Osman deposited his savings account through his own account.
Answer: Exempt-0
6. A, non-resident alien engaged in trade or business in the Philippines , has the following
income within and without the Philippines for 2018:
Within the Philippines Abroad
Interest income from depositary 70,000
bank under expanded foreign
currency deposit system in the
Philippines
Dividend Income 90,000 60,000
Royalty Income- musical 50,000 40,000
composition
Business income- net of expenses 250,000 300,000
(RIT)
Interest income bank deposits 30,000 40,0000
Prizes/Winnings 9,000 20,000
What is the Total Final Income tax due of A?
Answer= 90,000 x 10%= 9,000
50,000 x 10%= 5,000
30,00x 20%= 6,000
FWT 20,000
7. Jen, a resident citizen has a tax due for the taxable year 2023 of 1,000,000 pesos. She only
file and pay her tax obligation on August 31, 2024 before notice from the BIR. How much
is the total tax due of Jen upon paying on August 31, 2024?
