1.) Mr.

Y is a minimum wage earner, with the following data in a year:

answer
below 250,000 exempted from tax

Solution

2. Mr. Z is not a minimum wage earner, with the following data in a year:

Solution
Graduated tax
500,000+50,000 (salaries+benefits) - deductions (10,000) = 540,000
Since we're doing graduated tax 540,000-400,000 = 140,000
so lack 30,000+25% so its 140,000*.25= 35,000 still add extra 30,000 = 65,000
but since theres income tax wittheld 20,000 we deduct it from tax due which is
65,000-20,000 = 45,000 income tax due

3. It was anticipated that the gross salesfor the year of the individual in business subject to the 3% business tax will

a. 8% income tax = 140,000

b. graduated tax = 130,000
c. which is the better choice? = 8% income tax would be a better choice

Solution
4. It was anticipated that the gross receipts for the year of the individual in the practice of a profession subject to 3%
a. 8% income tax =
b. graduated tax =
c. which is the better choice? = 8% better choice
5. It was anticipated that the gross receipts for the year of the individual in the practice of a profession subject to the
(a) Income tax at 8%? Yes? No?? = Yes at 180,000
(b) Income tax at graduated rates? 130,000 w/o percentage tax

6. It was anticipated that the gross sales for the year of the individual in business subject to the 3% business tax will not excee
a) Income tax at graduated rates, if the taxpayer elected the Itemized Deductions?
(b) Income tax at graduated rates, if the taxpayer elected the Optional Standard Deduction
(c) The better choice (a) or (b)?

C=
7. It was anticipated that the gross receipts for the year of the individual in business subject to the 3% percentage ta
a) Income tax at graduated rates, if the taxpayer elected the Itemized Deductions?
(b) Income tax at graduated rates, if the taxpayer elected the Optional Standard Deduction??
c) The better choice (a) or (b)?
8. Non-cumulative amounts (for each quarter) of the individual in the practice of a profession subject to the 3% percentage tax
Gross Receipts
1st 4000000
2nd 2000000
3rd 3000000
4th 5000000

Itemized
1st 490000
2nd 190000
3rd 340000
4th 650000
9. Mr. A is an employee, with a gross compensation income of P 300,000 and in business, with gross sales of 2,900,000 non-operating incom
 Salaries $200,000.00
Benefits 20,000
Mandatory Deduction 5,000
Income tax for the YR 0

Salaries 500,000
Benefits 50,000
Mandatory Deduction 10,000
Income tax withheld 20,000
Income tax still due 45,000

Gross salary 550,000

deductables 540,000
From tax table 400,000
Taxable income 140,000

o the 3% business tax will not exceed P3,000,000:

Gross sales 2,000,000
Cost and expenses 1,200,000

8% TAX RATE

Gross Sales 2,000,000

ALLOWABLE DEDUCTION 250000
TAXABLE INCOME 1,750,000

TAX RATE 0.08 140000

Graduated
Gross sales 2,000,000
cost expenses 1,200,000
Taxable income 800,000
(exess of) subtraction -------> 400,000
 400,000

25% tax 0.25 100000

additional 30,000 30000 130,000

Income tax 130,000

Percentage tax %3 0.03 60,000

a profession subject to 3% percentage tax will not exceed P 3,000,000:

Gross Sales 2500000
Cost expense 1500000

8% TAX RATE

Gross Sales 2500000

ALLOWABLE DEDUCTION 250000
TAXABLE INCOME 2250000

TAX RATE 0.08 180000

Graduated
Gross sales 2500000
cost expenses 1500000
Taxable income 1000000
(exess of) subtraction -------> 800,000
200,000

30% tax 0.3 60000

additional 130,000 130000 190,000

Income tax 190,000

Percentage tax %3 0.03 75,000

 a profession subject to the 18% amusement tax will not exceed P 3,000,000:
Gross Sales 2500000
Cost expense 1700000

8% TAX RATE

Gross Sales 2500000

ALLOWABLE DEDUCTION 250000
TAXABLE INCOME 2250000

TAX RATE 0.08 180000

Graduated
Gross sales 2500000
cost expenses 1700000
Taxable income 800000
(exess of) subtraction -------> 400,000
400,000

25% tax 0.25 100000

additional 30,000 30000 130,000

Income tax 130,000

Amusement tax %18 0.18 450,000

% business tax will not exceed P 3,000,000:

Gross income (receipt of 2,000,000)
Cost expense

A Itemized Deduction
Gross sales
Cost Expernse
Taxable Income
Application of graduate tax rates Excess of
(30,000 + 25% in excess of 400k)
(30,000 + 25% (500k - 400k)) 25%
 30000

B
taxpayer elected the Optional Standard Deduction

Gross receipts
OSD 40% of receipts 40%
Taxable Income
excess of

30%
130000

ect to the 3% percentage tax will not exceed P 3,000,000:

Gross Sales 2500000
Cost expense 2100000

Itemized Deduction
Gross sales 2500000
Cost Expernse 2100000
Taxable Income 400000
Excess of 250000
150000
20% 30000

Optional Standard Deduction

Gross receipts 2000000
OSD 40% of receipts 40% 800000
Taxable Income 1200000
excess of 800000
400000
30% 120000
130000 250000
 Percentage Tax 3%

% percentage tax
Cost expense Itemized deduction
2000000 Gross receipt
1000000 Cost expense
1500000 Taxable income
2500000 Excess of

30%
additional of 130000 130000

Gross receipt
Cost expense
Taxable income
Excess of

30%
additional of 130000 130000

Gross receipt
Cost expense
Taxable income
Excess of

30%
additional of 130000 130000

Gross receipt
Cost expense
Taxable income
 Excess of

32%
additional of 490000 490000

f 2,900,000 non-operating income of 50,000 and cost and expenses 1,450,000.How much is the income tax if at the 8% rate?
Compensation Income 300000
excess of 250000
50000
20% 10000
Tax for compensation income 10000

Business gross sales 2900000

Non operating 50000
2950000
expenses 1450000
taxable income 1500000
excess of 800000
700000
30% 210000
additional 130000 130000 340000

Total tax 330000

A
Compensation income 500000
Gross sales 2900000
non op income 50000
cost expenses 1450000

ITEMIZED DEDUCTION
Gross receipt 3450000
Cost expense 1450000
taxable income 2000000
excess of 800000
 1200000
30% 360000
additional of 130000 130000
TAX 490000

ITEMIZED DEDUCTION
Compensation icome 500000
Gross sales 4000000
cost expense 2000000

itemized deduction
Gross receipt 4500000
Cost expense 2000000
taxable income 2500000
excess of 2000000
500000
32% 160000

additional of 490000 650000

1st quarter
8%
800000
250000
550000

0.08 44000

2nd quarter
Gross sales 1200000
allowable deduction 250000
taxable income 950000
 0.08 76000

3rd quarter
Gross sales 1800000
allowable deduction 250000
taxable income 1550000

0.08 124000

4th quarter
Gross sales 2500000
allowable deduction 250000
taxable income 2250000

0.08 180000

YEARLY
gross sales
1st quarter
2nd
3rd
4th

allowable deduction 250000

taxable income 6050000
8% 484000
Cant be 8% due to it being more than 3million

1st
A
Gross sales 3500000
cost expense 1320000
taxabe income 2180000
excess of 2000000
180000
32% 57600
490000 547600
2nd
Gross sales 5500000
cost expense 2700000
taxabe income 2800000
excess of 2000000
800000
32% 256000
490000 746000
3rd
Gross sales 8100000
cost expense 3400000
taxabe income 4700000
excess of 2000000
2700000
32% 864000
490000 1354000

4th
Gross sales 9900000
cost expense 4160000
taxabe income 5740000
excess of 2000000
3740000
32% 1196800
490000 1686800
<---------tax saved for the 8% method

<---------tax saved for the 8% method

<---------tax saved for the 8% method

1500000
1000000

1500000
1000000
500000
400000
100000
25000
 55000

2000000
800000
1200000
800000
400000
120000
250000
 1st Quarter
Optional Standard Deduction
4000000 Gross receipts 4000000
2000000 OSD 40% of receipts 40% 1600000
2000000 Taxable Income 2400000
800000 excess of 800000
1200000 1600000
360000 30% 480000
490000 130000 610000

Percentage Tax 3% 0.03 120000

2nd Quarter
2000000 Gross receipts 2000000
1000000 OSD 40% of receipts 40% 800000
1000000 Taxable Income 1200000
800000 excess of 800000
200000 400000
60000 30% 120000
190000 130000 250000

Percentage Tax 3% 0.03 60000

3rd Quarter
3000000 Gross receipts 3000000
1500000 OSD 40% of receipts 40% 1200000
1500000 Taxable Income 1800000
800000 excess of 800000
700000 1000000
210000 30% 300000
340000 130000 430000

Percentage Tax 3% 0.03 90000

4th Quarter

5000000 Gross receipts 5000000

2500000 OSD 40% of receipts 40% 2000000
2500000 Taxable Income 3000000
2000000 excess of 2000000
500000 1000000
160000 32% 320000
650000 490000 810000

Percentage Tax 3% 0.03 150000

OSD
Gross receipt 3450000
OSD 40% of rece 40% 1380000
taxable income 2070000
execess of 2000000
 70000
32% 22400
additional 490000
512400

OSD
Gross receipt 4500000
OSD 40% of rece 40% 1800000
taxable income 2700000
execess of 2000000
700000
32% 224000
490000 714000

1st
GTT
Gross sales 800000
cost expense 300000
taxabe iincome 500000
excess of 400000
100000
25% 25000
30000 55000

2nd
Gross sales 1200000
cost expense 700000
taxabe iincome 500000
 excess of 400000
100000
25% 25000
30000 55000

3rd
Gross sales 1800000
cost expense 900000
taxabe iincome 900000
excess of 800000
100000
30% 30000
130000 160000

4th
Gross sales 2500000
cost expense 1200000
taxabe iincome 1300000
excess of 800000
500000
30% 150000
130000 280000

Gross sales 800000

1200000
1800000
2500000
6300000
cost expense 3100000
taxabe iincome 3200000
excess of 2000000
1200000
32% 384000
490000 874000
1st
OSD
Gross receipt 3500000
OSD 40% of rece 40% 1400000
taxable income 2100000
 execess of 2000000
100000
32% 32000
additional 490000 522000
2nd
Gross receipt 5500000
OSD 40% of rece 40% 2200000
taxable income 3300000
execess of 2000000
1300000
32% 416000
additional 490000 906000
3rd
Gross receipt 8100000
OSD 40% of rece 40% 3240000
taxable income 4860000
execess of 2000000
2860000
32% 915200
additional 490000 1405200

4th
Gross receipt 9900000
OSD 40% of rece 40% 3960000
taxable income 5940000
execess of 2000000
3940000
32% 1260800
additional 490000 1750800