Professional Documents
Culture Documents
Semi Final Questions
Semi Final Questions
1. The proceeds of the life insurance received by the heirs of the insured
upon his death is excluded in gross income.
a. True b. False
11. Only the mandatory portion of GSIS, SSS, Philhealth, and union
dues can be excluded in gross compensation income.
a. True b. False
15. 13th month pay and other benefits are taxable only up to
P90,000.
a. True b. False
17. Mr. Kabacan surrendered his life insurance policy and received
a cash surrender value of P800,000 after contributing P700,000 in
annual premiums. Determine respectively the total exclusion in gross
income and the inclusion in gross income.
a. P800,000; P0 c. P100,000; P700,000
b. P0; P800,000 d. P700,000; P100,000
18. Mr. Tarragoza died. His heirs collected the P2,000,000 proceeds
of his life insurance policy. Mr. Tarragoza previously paid a total
payment of P500,000 in premiums. Determine respectively the
exclusion in gross income and the inclusion in gross income.
a. P2,000,000; P0 c. P2,000,000; P0
b. P500,000; P1,500,000 d. P0; P2,000,000
19. Mr. Malalag collected the P5,000,000 fire insurance proceeds of
his building which was destroyed by fire. The building had a tax basis
of 4,500,000 at the occurrence of the fire. Determine respectively the
total exclusion in gross income and the inclusion in gross income.
a. P5,000,000; P0 c. P4,500,000; P500,000
b. P0; P5,000,000 d. P500,000; P4,500,000
20. Mr. Cateel insured his crops for a P1,000,000 insurance cover
against calamities. He paid and expensed P100,000 insurance
premium. How much will be included in gross income?
a. P900,000 c. P100,000
b. P1,000,000 d. P0
26. Mr. Alvarez had the following income during the year:
Gross compensation income P 325,000
th
(including P25,000 13 month pay)
Less: Tardiness or absences 10,000
Net compensation income P 315,000
SSS deductions (12,000)
Philhealth deductions (9,000)
Pag-ibig deductions (10,000)
Union dues (5,000)
Withholding tax (40,000)
Net pay P 239,000
Compute the total exclusions from gross income.
a. P36,000 c. P66,000
b. P61,000 d. P71,000
28. Mr. Tacurong has the following data during the year:
Basic salary P 1,200,000
Income tax withheld 50,000
th
13 month pay 100,000
SSS 2,000
PhilHealth 1,800
Pag-Ibig 1,700
Union dues 500
Capital build up contribution in a social fund 2,000
30.
31. Items of gross income subject to regular income tax and capital
gains tax are reportable to the government.
a. True b. False
34. Gains from dealings in capital assets are generally subject to the
regular income tax.
a. True b. False
35. The gross income from operations enjoying a tax holiday are
included in gross income subject to regular tax, but are presented as
deductions in the income tax return.
a. True b. False
38. Items of passive royalty income are subject to final income tax
while items of active royalty income are subject to regular income tax.
a. True b. False
53. Corazon resigned in 2015 after 12 years of service. She had the
following income during the year.
Salary, net of P80,000 withholding tax, P20,000 SSS, P18,000
PhilHealth and P40,000 13th month pay
P 480,000
Separation pay 1,000,000
Compute the gross income subject to progressive (regular tax)
a. P1,480,000 c. P560,000
b. P1,560,000 d. P480,000
54. Iriga Corporation is engaged in the sales of goods. It reported
the following summarized financial statements during the year:
Sales P 3,500,000
Less: Cost of Sales 2,000,000
59. The Big Bird Security Agency (BBSA) received P3,000,000 from
its clients. P2,400,000 of this was designated for salaries of guards
assigned to various client establishments.
How much will be included in the gross income of BBSA?
a. P600,000 c. P3,000,000
b. P2,400,000 d. P0
63. Mr. Conner purchased a life annuity for P1,000,000 which will
pay him P100,000 a year. What will Mr. Conner include in his gross
income on the 11th year of the policy?
a. P1,000,000 c. P200,000
b. P100,000 d. P1,200,000
64. Edwin purchased the life insurance policy of Paulo for P50,000.
He continued the policy by paying P20,000 premium after which Paulo
died