Jose, the 70-year old widowed father of Rolando is earning P10,000.00 a month. As his income is barely enough just for medicines alone, Jose lives with and is dependent for his chief support upon Rolando who is single. How much basic personal and additional exemptions could Rolando claim when he files his income tax return?
Jose, the 70-year old widowed father of Rolando is earning P10,000.00 a month. As his income is barely enough just for medicines alone, Jose lives with and is dependent for his chief support upon Rolando who is single. How much basic personal and additional exemptions could Rolando claim when he files his income tax return?
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 30P
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Question
1. Jose, the 70-year old widowed father of Rolando is earning P10,000.00 a month. As his income is barely enough just for medicines alone, Jose lives with and is dependent for his chief support upon Rolando who is single. How much basic personal and additional exemptions could Rolando claim when he files his income tax return?
A. P50,000
B. P25,000
C. none
D. P75,000
2. Mr. X received a letter from Mr. Y, his brother, to withdraw $1,000 from the PNB. The teller of PNB, however, issued $10,000 to Mr. X in which the latter took the entire money and spent the $9,000 immediately. Assuming that the exchange rate is P50 per $1, how much is the reportable income received by error by Mr. X? *
A. P50,000
B. P450,000
C. P500,000
D. P0
3. A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and estimated useful life of 5 years for P650,000. What is the carrying value of the machine after 2 years of operation under the sum-of-the-Year-Digit Method? *
A. P290,000
B. P240,000
C. P190,000
D. P250,000
4. On January 1, 2018, Logan’s wife, Irma, died while giving birth to a child, but the child survived. Logan took care of the child bringing him wherever he was assigned. If Logan is a resident citizen, how much personal and additional exemptions could Logan avail of when he files his Income tax return for 2018 income?
A. 25,000
B. 50,000
C. None
D. 75,000
5. X Corporation opted to deduct OSD. The following are the results of its operation: Net sales -P3,450,000; Cost of Sales – P2,100,000; Dividend from Y Corporation, a domestic corporation – P150,000; Gain on sale of Building – P200,000; Selling Expenses – P70,000; Administrative Expenses – P30,000. What is the taxable net income? *
A. P 930,000
B. P 1,020,000
C. P 870,000
D. P 810,000
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