1 CPAR CPA Review School of the Philippines FIRST PRE-BOARD EXAMINATION TAXATION 1. Statement 1: Estate tax is a proportional tax. Statement 2: A progressive tax is a tax, the rate of which is directly proportional to tax base. a. b. c. d. 2. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: Non-payment of tax makes the business illegal. Statement 2: The non-payment of license fee makes the business illegal. a. b. c. d. 6. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: All of our tax laws are statutory laws. Statement 2: The non-impairment clause is a statutory law on taxation. a. b. c. d. 5. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: Taxation and power of Eminent Domain may be exercised simultaneously. Statement 2: Taxation and Police Power may be exercised simultaneously. a. b. c. d. 4. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: Taxation without representation is not tyranny. Statement 2: In the exercise of taxation, the state can tax anything at any time and at any amount. a. b. c. d. 3. July 15, 2023 Atty. Llamado/De Vera If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: Margin fee is a tax. Statement 2: Custom’s duty is a tax. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 2 7. Statement 1: Territoriality is one of the constitutional limitations on the power of taxation. Statement 2: International comity is an inherent limitation in taxation. a. b. c. d. 8. Statement 1: Taxes may be used for sectarian purposes if allowed by an ordinance. Statement 2: The President can refuse to implement a tax law if it appears to be unconstitutional. a. b. c. d. 9. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. Statement 1: There can be double taxation in the Philippines. Statement 2: Double taxation is illegal if it violates the uniformity of taxation. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 10. Statement 1: A progressive system of taxation means a tax structure where the tax base increases as the tax rate increases. Statement 2: Tax exemption is a grant of immunity to a particular taxpayer from tax where others are obliged to pay. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 11. Statement 1: Tax avoidance is a form of tax escape. Statement 2: Tax evasion is not punishable. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 12. Statement 1: A tax may include the power to destroy. Statement 2: A tax may be imposed violating uniformity of taxation. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 13. Statement 1: A tax may be subjected to set-off or compensation. Statement 2: A tax ordinarily includes interest. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 3 14. Statement 1: A tax bill may embrace more than one subject. Statement 2: Non-payment of a tax cannot result to criminal liability on the part of the taxpayer, only civil liability. a. b. c. d. If only the first statement is correct. If only the second statement is correct. If both statements are correct. If both statements are incorrect. 15. Occupying the forefront of tax law enforcement is the: a. b. c. d. Department of Finance Bureau of Internal Revenue Legislative Department Executive Department 16. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws administered by the BIR is vested with a. b. c. d. The Commissioner of the BIR The Secretary of Finance The Court of Tax Appeals The Regular Courts 17. It is the official action of an administrative officer in determining the amount of tax due from a taxpayer, or it may be a notice to the effect that the amount stated therein is due from the taxpayer with a demand for payment of the tax or deficiency stated therein a. b. c. d. Tax investigation Tax audit Tax assessments Tax mapping 18. The powers and duties of the Bureau of Internal Revenue comprehend the following, except? a. b. c. d. Assessment and collection of all national and local revenue taxes. Enforcement of all forfeitures, penalties and fines in connection connected with the collection of national internal revenue taxes. Execution of judgment in all cases decided in its favor by the Court of Appeals, and the ordinary courts. Effecting and administering the supervisory and police powers conferred to it by the Tax Code or other laws. 19. The following powers of the Commissioner may not be delegated, except: a. b. c. d. The power to recommend the promulgation of rules and regulations by the secretary of finance. The power to issue ruling of first impression or to reverse, revoke or modify any existing ruling of the bureau. The power to compromise or abate internal revenue taxes save for a few. The power of the commissioner to make assessments. 4 20. The following are agents and deputies for collection of National Internal Revenue taxes, except: a. b. c. d. The commissioner of Customs and his subordinates with respect to the collection of national Internal Revenue Taxes on imported goods. The head of the appropriate government office and his subordinates with respect to the collection of energy tax. Banks duly accredited by the commissioner with respect to receipts of payments of internal revenue taxes authorized to be made thru banks. City treasurer with regard to collection of real estate tax. 21. What are the means employed in the assessment of taxes, EXCEPT? a. b. c. d. Examination of tax returns (tax-audit); Inventory taking surveillance and use of presumptions gross sales or receipts; Prescription of real property values; Examination of bank deposits; 22. Bruno Mars performed in Philippine Arena fringe benefit is a. b. c. d. Tax of 32% and grossed-up rate of 68% Tax of 15% and grossed-up rate of 85% Tax of 25% and grossed-up rate of 75% Tax of 35% and grossed-up rate of 65% 23. What would be the allowable deduction for P8,000 contribution made by a resident citizen to a religious organization from his P70,000 net income after contribution? a. b. c. d. P8,000 P7,000 P7,800 P3,900 24. A bought a condominium unit under installment basis, to be used as his office in the practice of his profession and paying P10,000 monthly. For income tax purposes, the P10,000 monthly payment shall be a. b. c. d. Treated as business rental, hence deductible Treated as capital expenditure, hence not deductible Treated as depreciation expense, hence deductible Treated as ordinary business expense 25. A domestic corporation made a borrowing from ABC bank thereby incurring a business connected interest expense of P60,000 for taxable year 2022. During the same year, the corporation earned an interest income subject to final tax in the amount of P100,000. The deductible interest is a. b. c. d. P40,000 P33,000 P60,000 P27,000 26. In a year, ABC Corp. paid total premiums of P1,000 for the life insurance policy of the vice president, where the beneficiary is the corporation. At the end of the year, ABC received dividend of P100 because of the policy. The corporation should indicate a claim for a deduction for life insurance premium of a. b. c. d. P1,000 P 900 P1,100 Zero 5 27. The maximum 13th month pay that can be claimed? a. b. c. d. 50,000 82,000 90,000 Any amount equivalent to 1/12 of annual salary 28. Mr. B resident citizen, earned $1,000,000 in USA, where the state of Nevada imposed and collected 40% tax on said amount. Here in the Philippines, Mr. B earned P1,000,000. What are the tax consequences of his income within and without the Philippines? a. Only the P1,000,000 income in the Philippines will be taxed by BIR. b. Both $1,000,000 and P1,000,000 earned within and without the Philippines will be taxed by the BIR. c. Both $1,000,000 and P1,000,000 earned within and without the Philippines will be taxed by the BIR, however, Mr. B can claim allowable deductions over taxes paid abroad. d. Both $1,000,000 and P1,000,000 earned within and without the Philippines will be taxed by the BIR, however, Mr. B can claim tax credit over taxed paid abroad. 29. For purposes of computing the MCIT, which will not form part of cost of goods sold for traders: a. Invoice cost b. Import duties c. Freight-out d. Wharfage 30. To record expired portion of MCIT, what account is debited: a. Retained earnings b. Income tax payable c. Deferred charges MCIT d. Provision for income tax 31. Bacolor Pegasus Yambing total compensation income amounted to P3,000,000 and Gross Sales from business amounting to P3,000,000 in a given year. Which of the following statement is correct? a. b. c. d. Bacolor Pegasus Yambing is a mixed earner has the option to avail Gross Receipt Tax of 8% or Progressive Income Tax. Bacolor Pegasus Yambing is a mixed earner cannot avail of Gross Receipt Tax of 8%, he exceeded the threshold of P3,000,000. Bacolor Pegasus Yambing is a mixed earner and has no option but all his income shall be subjected to progressive income tax. Bacolor Pegasus Yambing is a mixed earner and can only be subjected to Gross Receipt Tax of 8%. 32. Edwin De Guzman is a Filipino immigrant living in the United States for more than 10 years. He is retired and he came back to the Philippines as a balikbayan. Every time he comes to the Philippines, he stays here for about a month. He regularly receives a pension from his former employer in the United States, amounting to US$1,000 a month. While in the Philippines, with his pension pay from his former employer, he purchased three condominium units in Makati which he is renting out for P15,000 a month each. What tax exposure will Edwin faced with the BIR? a. b. c. d. Both pension and rent income will be taxable being a balikbayan or resident citizen. Only incomes within the Philippines amounting to rental income of 15,000 is taxable being an immigrant of USA or non-resident citizen. Rent income will be taxable while pensions of returning Filipinos who permanently reside in Philippines pension will be exempt from tax. No income will be taxable, because returning Filipinos income whether within or without the Philippines are exempt from taxes. 6 33. Mr. JC De Leon sold for P10,000,000 his Baguio rest house with a Fair Market Value of P12M to buy a new principal residence. If K utilized P8M of the proceeds of the sale in acquiring a new principal residence, the capital gains tax payable is: a. P 720,000 b. P 600,000 c. P 144,000 d. zero 34. A minimum wage earner shall be liable to pay income tax on his: a. b. c. d. Mandatory contributions Overtime pay Commissions Night differential pay. 35. Under the electronic Filing and Payment System (eFPS) a return is deemed filed with the BIR after a sequence Number is generated. What is this sequence Number? a. b. c. d. Reference Number Confirmation Number Acknowledgement Number Computerized Generated Number 36. A tax is classified as ____________________, if the same is based on the value of the property, which may require the intervention of assessors and appraisers. A. B. C. D. E. ad valorem specific direct indirect None of the above 37. A non-resident alien not engaged in trade or business (NRANETB) shall generally be subject to a 25% final tax on gross income received from all sources within the Philippines. However, an NRANETB shall be exempt from tax on: A. B. C. D. Philippine Charity and Sweepstakes Office (PCSO) winnings less than ₱10,000. De minimis prizes of less than ₱10,000. Interest income paid by a depositary bank under the foreign currency deposit system. Interest income from a long-term deposit or investment certificate issued by a bank in the Philippines, and held for a period exceeding 5 years. 38. If refunded, the amount of refund does not constitute taxable income: a. b. c. d. Donor’s tax Local taxes OPT FBT 39-44. Angela Disini, Filipino, single, resident of Taguig City, Metro Manila, received in taxable year 2023 the following professional fees as a VAT-registered interior design consultant: Monthly Fees Less 10% CWT Net Monthly Fees ₱300,000 ₱30,000 ₱270,000 The monthly cost of her professional services amounted to ₱200,000 per month. The rental expenses related to her consultancy business amounted to: 7 Monthly rental expense CWT Monthly rental expense paid Office space ₱30,000 ₱1,500 ₱28,500 Computer ₱5,000 ₱250 ₱4,750 Note: The lessor of the office space is Angela’s second cousin, Christopher. She has excess tax credits from the prior year of ₱45,000. In 2023, Angela had to take out a business loan but no bank was willing to extend her credit for lack of collateral. She approached her second cousin, Christopher, the lessor of her office space. Christopher agreed to loan her the amount of ₱4.0 Million and Angela agreed to pay Christopher a monthly interest of ₱150,000 starting January 2023. In addition to the loan, Christopher decided to help Angela by buying her personal car in February 2023 for ₱1,100,000. She bought the car in 2020 for ₱1,300,000. When it was sold to Christopher, the car had a net book value of ₱1,000,000. In her 1st Quarterly ITR, she chose to be taxed under the graduated rates with OSD as method of deduction. 39. Calculate her tax payable/(overpayment) in the 3rd Quarterly ITR. a. b. c. d. ₱17,500 (₱45,000) ₱5,000 None of the above. 40. For her annual ITR, she chose to file BIR Form No. 1701A (for Individuals Earning Income Purely from Business/Profession). What is the correct amount of Tax Payments for the First 3 Quarters that may be availed of as credits against the annual tax due computed in Form 1701A? a. b. c. d. ₱360,000 ₱ 45,000 ₱ 5,000 None of the above. 41. Calculate her tax payable/(refundable) in the Annual ITR. a. b. c. d. ₱55,500 ₱43,000 ₱60,500 None of the above. 42. If Christopher is a brother of Angela, calculate her tax payable/(overpayment) in her 2nd Quarterly ITR under the graduated rates with itemized deduction as the method of deduction. a. b. c. d. (₱194,500) (₱158,500) (₱225,000) None of the above. 8 43. If Angela chose to be taxed under the graduated rates with itemized deduction as method of deduction, what BIR Form should she file as her annual ITR? a. BIR Form No. 1701A (Those under the graduated income tax rates with OSD as mode deduction OR those who opted to avail of the 8% flat income tax rate) b. BIR Form No. 1701 (AITR for Individuals (including MIXED Income Earner), Estates, and Trusts) c. BIR Form No. 1700 (For Individuals earning purely compensation income) d. None of the above. 44. If Christopher is a brother of Angela, calculate her tax payable/(refundable) in the Annual ITR if she chose to be taxed under the graduated rates with itemized deduction as method of deduction. a. b. c. d. (₱295,000) (₱405,000) (₱282,500) None of the above. 45 -55. Marilyn Llamas, with TIN 143-444-143, resident citizen, single, 29 years of age, is an employee of JO Logistics, Inc. from which she received the following employment income in 2022: Gross pay Less CWT Less SSS premiums and union dues Less Contribution to Employees’ Trust Net Pay ₱850,000 ₱60,000 ₱6,000 ₱25,000 ₱759,000 The amounts mentioned above are exclusive of the 13th Month Pay and Other Benefits she received in the amount of ₱70,800. Marilyn, aside from her employment, is also registered with the BIR as engaged in real estate leasing and management consultancy. She has the following financial information in the current taxable year 2022: (a) (b) (c) (d) (e) (f) (g) (h) (i) Interest income on receivable from her mother Interest expense on loan owed to fiancé Royalty income from book, net of FT Loss on sale of rental property to brother Gain on sale of personal car bought in 2018 Rental receipts from real property, gross of 5% CWT Cost of revenues of real property leasing business Distributive share in net income of a GPP, net of 15% WT Dividend received from Microsoft Corporation with headquarters in Seattle, Washington, USA (j) Dividend from Jollibee Corporation (k) Expenses for singing lessons with Anne Curtis ₱ 25,000 10,000 15,000 350,000 90,000 600,000 100,000 187,000 75,000 5,000 50,000 Because she is a mixed income earner and is not qualified for the 8% tax option, she will be filing BIR Form No. 1701 as her annual ITR. 9 45. What is the correct amount of Gross Compensation Compensation to be placed in Part V, Schedule 2, Item 4 on page 2 of BIR Form No. 1701? a. b. c. d. ₱759,000 ₱850,000 ₱920,800 None of the above. 46. What is the correct amount of Taxable Compensation Income to be placed in Part V, Schedule 2, Item 6 on page 2 of BIR Form No. 1701? a. b. c. d. ₱914,800 ₱844,000 ₱754,000 None of the above. 47. What is the correct amount of Net Sales/Revenues/Receipts/Fees to be placed in Part V, Schedule 3.A, Item 10 on page 2 of BIR Form No. 1701? a. b. c. d. ₱600,000 ₱850,000 ₱1,354,000 None of the above. 48. What is the correct amount of Total Allowable Itemized Deductions to be placed in Part V, Schedule 3.A, Item 16 on page 2 of BIR Form No. 1701? a. b. c. d. ₱10,000 ₱350,000 ₱360,000 None of the above. 49. What is the correct amount of Amount Received/Share in Income by a Partner from a GPP to be placed in Part V, Schedule 3.A, Item 21 on page 2 of BIR Form No. 1701? a. b. c. d. ₱220,000 ₱187,000 ₱230,000 None of the above. 50. What is the correct amount of Total Other Non-Operating Income to be placed in Part V, Schedule 3.A, Item 22 on page 2 of BIR Form No. 1701? a. b. c. d. ₱340,000 ₱295,000 ₱365,000 None of the above. 51. What is the correct amount of Taxable Income-Business to be placed in Part V, Schedule 3.A, Item 23 on page 2 of BIR Form No. 1701? a. ₱ 855,000 b. ₱ 844,000 c. ₱1,699,000 d. None of the above. 52. What is the correct amount of Total Taxable Income to be placed in Part V, Schedule 3.A, Item 24 on page 2 of BIR Form No. 1701? a. b. c. d. ₱ 855,000 ₱ 844,000 ₱1,699,000 None of the above. 10 53. What is the correct amount of Total Tax Due to be placed in Part V, Schedule 3.A, Item 25 on page 2 of BIR Form No. 1701? a. b. c. d. ₱327,250 ₱399,700 ₱457,450 None of the above. 54. What is the correct amount of Total Tax Credits/Payments to be placed in Part VII, Item 10 on page 4 of BIR Form No. 1701? a. b. c. d. ₱113,000 ₱130,000 ₱123,000 None of the above. 55. Calculate her tax payable/(refundable) in the Annual ITR. a. b. c. d. ₱204,250 ₱276,700 ₱206,750 None of the above. 56. The following are the features of the 8% optional income tax in the ITR, except: a. b. c. d. The qualified individual taxpayer is not required to file his financial statements with his Annual ITR. The qualified taxpayer is not required to comply with bookkeeping and invoicing requirements under the Tax Code. A self-employed taxpayer, who is also a partner in a general professional partnership, cannot avail of the 8% tax rate option. The qualified taxpayer is exempt from paying the 3% OPT under Section 116 of the Tax Code. 57. VMV Corporation leased a condominium unit for the use of its CFO. The monthly rent agreed upon under the lease contract was ₱192,850, net of the 5% CWT. Compute the quarterly FBT to be paid by VMV Corporation. a. b. c. d. ₱155,763 ₱156,154 ₱163,962 None of the above 58. In number 57, what is the total deduction allowable to VMV Corporation for the quarter? a. b. c. d. ₱772,962 ₱734,313 ₱609,000 None of the above 59. Crisamel Corporation owns a house in Quezon City which is being used by its President. The house was acquired for ₱30.0 Million. The FMV of the house per Real Property Tax Declaration is ₱25.0 Million, while its Zonal Value is ₱29.0 Million. Determine the fringe benefit taxes due in 2023. a. b. c. d. ₱403,846 ₱390,385 ₱725,000 None of the above. 11 60. In relation to the use of house in number 60 above, what is the total amount which Crisamel may have as deductions in its ITR if the house is being depreciated over 25 years. a. b. c. d. ₱1,603,846 ₱1,590,385 ₱1,840,385 None of the above 61. Which of the following benefits received by an employee should be included in the employee’s 13th month pay and other benefits, and which therefore potentially may be subject to the regular income tax in the ITR? (1) (2) (3) (4) Use of employer’s car for business meetings Laundry allowance of ₱3,600 per year Payment of tuition fee of eldest child of a rank-and-file employee Housing provided to a rank-and-file employee a. b. c. d. (1) and (2) (2) and (3) (3) and (4) None of the above 62-63. Alberto fell in love with Beatrice. However, Alberto’s father disapproved of the relationship. Against his father’s wishes, Alberto and Beatrice eloped, got married, and had 4 children. In spite of his disapproval of his son’s marriage, Alberto’s father created an ordinary trust with Atty. Salvador Sanchez as trustee. Alberto’s father transferred a 20-door apartment where rent income of ₱658,000 per month (net of 5% withholding tax) was received by the trust with cost of revenues of ₱1,974,000 and deductible expenses of ₱164,500 during the year 2023. 50% of the net income was given to Alberto. 62. Determine the income tax still due from the trust in taxable year 2023. a. b. c. d. ₱271,325 ₱728,462 ₱312,883 ₱0 63. Assume that the trust in number 62 was a revocable trust wherein title to the property of the trust may at any time revest or revert to Alberto’s father. Compute the income tax payable of the trust in taxable year 2023. a. b. c. d. ₱41,000 ₱51,000 ₱31,000 None of the above 64. The board of directors of Rural Banking Corporation (RBC) voted to take a life insurance policy covering the life of its dynamic Chief Operation Officer, Noel Reyes. Statement 1: If the designated beneficiary of the policy is Noel’s family, the premium paid by RBC shall be taxable to Noel. However, the tax thereon shall be imposed on, and paid by RBC. Statement 2: If the designated beneficiary of the policy is RBC, the premiums paid thereon are not deductible by RBC. a. Statement 1 is true. b. Statement 2 is true. c. Both statements are false. d. Both statements are true. 12 65. Statement 1: Property dividend received by a resident foreign corporation from a non-resident foreign corporation is generally exempt from Philippine income tax. Statement 2: Dividends received by individuals from domestic corporations are not subject to creditable withholding taxes. a. Statement 1 is true. b. Statement 2 is true. c. Both statements are false. d. Both statements are true. 66. The following are the requirements for retirement benefits received under RA No. 7641 to be exempt from Philippine income tax, except: a. b. c. d. There must be a reasonable private benefit plan which is approved by the BIR. The retiree must have been in the service of the employer for at least 5 years. The retiree must at least be 60 years old, but not more than 65 years old. None of the above. 67. Statement 1: The income of an individual, trust, or estate that owns a proprietary educational institution as a sole proprietor shall be taxed at the preferential rate of 10% (1% from July 1, 2020 to June 30, 2023). Provided, the individual, trust, or estate passes the predominance test. Statement 2: The income of a proprietary educational institution organized as a resident foreign corporation shall be taxed at the preferential rate of 10% (1% from July 1, 2020 to June 30, 2023). Provided, such resident foreign corporation passes the predominance test. a. b. c. d. Only Statement 1 is true. Only Statement 2 is true. Both Statements are true. Both Statements are false. 68-69. Santiago de Santos, an engineer, is employed as a lecturer in a university. On the side, he also provides consultancy services for select clients. One of these clients was so impressed with him that he was made a consultant for one of his companies engaged in construction. For 2023, he received the following incomes: Salary from university, net of CWT of ₱62,500 13th month pay received from the university Monetized unused vacation leave credits (10 days) Employee longevity award with monetary value of Fees received as consultant, gross of 10% CWT Professional fees from clients, net of 15% CWT Damages won in a defamation suit filed against ex-wife Capital gains from sale of jewelry bought in 2000 ₱ 537,500 60,000 50,000 10,000 80,000 850,000 8,000,000 100,000 68. What is his taxable compensation income for 2023? a. ₱600,000 b. ₱660,000 c. ₱537,500 d. None of the above 69. In number 68, what amount of total gross taxable income shall be reflected in his AITR for 2023? a. ₱1,730,000 b. ₱1,580,000 c. ₱1,780,000 d. ₱1,069,000 13 70. A domestic corporation made the following charitable contributions in the current taxable year: ₱ 100,000 200,000 300,000 To the victims of a typhoon To an accredited religious organization To an accredited NGO If the domestic corporation’s net income for the current taxable year is ₱5,000,000 (after all deductions including the abovementioned charitable contributions), what is its taxable net income for the current taxable year? a. ₱4,500,000 b. ₱5,100,000 c. ₱5,020,000 d. None of the above. Graduated Tax Rates: Effective January 1, 2018 to December 31, 2022: On citizens, resident aliens, non-resident aliens engaged in business in the Philippines On compensation, business and other income Range of Taxable Income (TI) Over Tax Due = a + [b x (TI - c)] Basic Amount Additional Rate Of Excess Over (a) (b) (c) Not Over - 250,000 - - 250,000 400,000 - 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 - 2,410,000 35% 8,000,000 14 Graduated Tax Rates: Effective January 1, 2023 onwards: On citizens, resident aliens, non-resident aliens engaged in business in the Philippines On compensation, business and other income Range of Taxable Income (TI) Over Not Over Tax Due = a + [b x (TI - c)] Basic Amount Additional Rate Of Excess Over (a) (b) (c) - 250,000 - 250,000 400,000 - 15% 250,000 400,000 800,000 22,500 20% 400,000 800,000 2,000,000 102,500 25% 800,000 2,000,000 8,000,000 402,500 30% 2,000,000 8,000,000 - 2,202,500 35% 8,000,000 END -