CAPITOL UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
ACCOUNTANCY DEPARTMENT
SECOND EXAM BEFORE FINAL PREBOARD
Questions 1-2.
1. A 10-year maturity instrument was held by Mr. Frank Hey, a resident citizen, for 2 years before being
transferred to Mr. Lits, a resident alien, who held it for 8 years. How much final withholding tax is due on
the interest income, P20,000 received by Mr. Frank Hey?
a. 2,000
b. Exempt
c. 4,000
d. None of the Options
2. How much is the Final Withholding Tax Due if Mr. Lits received P80,000 interest income?
a. Exempt
b. 8,000
c. 16,000
d. None of the Options
Questions No. 3-5
3. An instrument with maturity period of 10 years was held by Mr. A (a non-resident living in Russia)
engaged in trade or business in the Philippines) for 3 years and transferred it to Mr. B (citizen living in
Cebu City). Mr. B held it for 2 years before subsequently transferring it to Mr. C (a nonresident living in
France not engaged in trade or business), who pre-terminated it after 4 years. How much is the final
withholding tax due of Mr. A if interest received is P30,000?
a. 1,500
b. 6,000
c. Exempt
d. None of the Options
4. How much is the final withholding tax due of Mr. B if interest received is P20,000?
a. 2,000
b. 4,000
c. Exempt
d. None of the Options
5. How much is the final withholding tax due of Mr. C if interest received is P40,000?
a. 8,000
b. 4,000
c. 10,000
d. None of the Options
Questions 6-8
6. An instrument with maturity period of 10 years was held by Mr. X (a citizen living in Bohol) for 3 years
and transferred it to Mr. Y (an alien living in Siargao). Mr. Y held it for 2 years before subsequently
transferring it to Mr. Z (a citizen living in Cagayan de Oro), who held it until the day of maturity or for 5
years. How much is the final withholding tax due of Mr. X if interest income received is P9,000?
a. 1,080
b. 1,800
c. 1,800
d. None of the Options
7. How much is the final withholding tax due of Mr. Y if interest income received is P6,000?
a. 300
b. 720
c. 1,200
d. None of the Options
8. How much is the final withholding tax due of Mr. Z if interest income received is P15,000?
a. Exempt
c. 3,750
c. 3,000
d. None of the Options
Questions No. 9-11
9. In 2020, Ms. Daniela Paurom sold her vacation house for P5,000,000, which she had purchased two
years prior for P3,000,000. At the time of sale, the property's fair market value was P8,000,000. Ms.
Paurom intended to use the proceeds to construct a new principal residence within 18 months after
notifying the BIR of her intention within 30 days of the sale. What are the applicable capital gains tax
(final tax) ?
a. 300,000
b. 1,600,000
c. 120,000
d. None of the Options
10. Same problem however, Ms. Paurom sold her principal residence and the whole selling price was
fully utilized for her new residence, how much is the capital gains tax (final tax)?
a. 480,000
b. Exempt
c. 300,000
d. None of the Options
11. Same problem however, Ms. Paurom sold her principal residence and only 2,000,000 was utilized
for her new residence, how much is the capital gains tax (final tax)?
a. 288,000
b. 192,000
c. 480,000
d. None of the Options
Questions No. 12-14
12. Mr. See No Ka purchased his principal residence in 2016 for P1,000,000. On January 1, 2018, he sold
the property for P4,000,000, while its fair market value was P5,000,000. Within the 18-month
reglementary period, he used only P3,000,000 of the sale proceeds to acquire a new principal residence.
How much is the capital gains tax (final tax) due?
a. Exempt
b. 300,000
c. 225,000
d. None of the Options
13. Same problem however, Mr. Ka sold his principal residence and the whole selling price was fully
utilized for his new vacation house, how much is the capital gains tax (final tax)?
a. 225,000
b. 300,000
c. Exempt
d. None of the Options
14. Same problem however, Mr. Ka sold his principal residence and the whole selling price was fully
utilized for his residence, how much is the capital gains tax (final tax)?
a. Exempt
b. 300,000
c. 225,000
d. None of the Options
Question No. 15-36
The following are income received by Rolan Lovely Khu, a citizen living in Cagayan de Oro City, for the year
2023, as follows:
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Interest from peso bank deposit, Metrobank-XU Branch, PhP28,500
Winnings amounting to P400,000, Philippines
Interest income amounting to P540,000 from long-term deposit or investment evidenced by
certificates issued by BSP (issued by a bank to an individual in denomination of P10,000)
Royalties, in general, Manila, P50,000
Philippine Lotto winnings, P1,000,000
Interest income amounting to P68,000 from a debt instrument not within the coverage of deposit
substitute, Philippines
Dividend from a foreign corporation, P150,000
Prize amounting to P80,000, Philippines
Dividend from a domestic corporation, P500,000
USA Sweepstakes winnings, $1,000,000
Interest income amounting to P55,000 from long-term deposit or investment evidenced by
certificates issued by BSP (issued by a financial institution other than a bank in denomination of
P10,000)
Interest income from a debt instrument within the coverage of a deposit substitute, Philippines,
amounting to P100,000
Interest from Japanese yen bank deposit, Sumitomo Bank, Japan, 100,000
Royalties, books published in Manila, P250,000
Prize amounting to P400,000, IRAQ
Interest from overdue accounts receivable, Philippines, P110,000
Prize amounting to P10,000, Philippines
Winnings amounting to P10,000, Philippines (not PCSO)
Interest from USA dollar bank deposit, First USA Bank, New York, 400,000
Share in distributive net income of local business partnership, P120,000
15. How much is the Final Withholding Tax Due on the amount received from Prize amounting to P10,000,
Philippines?
a. 2,000
b. 2,500
c. Exempt
d. None of the Options
16. How much is the Final Withholding Tax Due on the amount received from Interest income amounting
to P55,000 from long-term deposit or investment evidenced by certificates issued by BSP (issued by a
financial institution other than a bank in denomination of P10,000)?
a. Exempt
b. 13,750
c. 5,500
d. None of the Options
17. How much is the Final Withholding Tax Due on the amount received from Dividend from a domestic
corporation, P500,000?
a. 50,000
b. 100,000
c. Exempt
d. None of the Options
18. How much is the Final Withholding Tax Due on the amount received from Interest income amounting
to P540,000 from long-term deposit or investment evidenced by certificates issued by BSP (issued by a
bank to an individual in denomination of P10,000)?
a. 108,000
b. 54,000
c. Exempt
d. None of the Options
19. How much is the Final Withholding Tax Due on the amount received from Interest income amounting
to P68,000 from a debt instrument not within the coverage of deposit substitute, Philippines?
a. None, Sec24A
b. 13,600
c. 6,800
d. None of the Options
20. How much is the Final Withholding Tax Due on the amount received from Interest from peso bank
deposit, Metrobank-XU Branch, PhP28,500?
a. Exempt
b. 2,850
c. 5,700
d. None of the Options
21. How much is the Final Withholding Tax Due on the amount received from Royalties, books published
in Manila, P250,000?
a. 50,000
b. 25,000
c. 62,500
d. None of the Options
22. How much is the Final Withholding Tax Due on the amount received from Prize amounting to P80,000,
Philippines?
a. 12,000
b. 8,000
c. 16,000
d. None of the Options
23. How much is the Final Withholding Tax Due on the amount received from Interest income from a debt
instrument within the coverage of a deposit substitute, Philippines, amounting to P100,000?
a. 0
b. 10,000
c. 25,000
d. None of the Options
24. How much is the Final Withholding Tax Due on the amount received from Share in distributive net
income of local business partnership, P120,000?
a. 30,000
b. 0
c. 24,000
d. None of the Options
25. How much is the Final Withholding Tax Due on the amount received from Share in distributive net
income of local business partnership, P120,000?
a. 30,000
b. 0
c. 24,000
d. None of the Options
26. How much is the Final Withholding Tax Due on the amount received from Winnings amounting to
P400,000, Philippines?
a. 40,000
b. 10,000
c. 0
d. None of the Options
27. How much is the Final Withholding Tax Due on the amount received from Interest from overdue
accounts receivable, Philippines, P110,000?
a. 22,000
b. 11,000
c. 0
d. None of the Options
28. How much is the Final Withholding Tax Due on the amount received from Royalties, in general, Manila,
P50,000?
a. 5,000
b. 10,000
c. 0
d. None of the Options
29. How much is the Final Withholding Tax Due on the amount received from Philippine Lotto winnings,
P1,000,000?
a. 100,000
b. 200,000
c. 0
d. None of the Options
30. How much is the Final Withholding Tax Due on the amount received from Dividend from a foreign
corporation, P150,000?
a. 0
b. 30,000
c. 15,000
d. None of the Options
31. How much is the Final Withholding Tax Due on the amount received from Interest from USA dollar
bank deposit, First USA Bank, New York, 400,000?
a. 80,000
b. 40,000
c. 100,000
d. None of the Options
32. How much is the Final Withholding Tax Due on the amount received from Winnings amounting to
P10,000, Philippines (not PCSO)?
a. 1,000
b. 0
c. 10,000
d. None of the Options
33. How much is the Final Withholding Tax Due on the amount received from USA Sweepstakes winnings,
$1,000,000?
a. $25,000
b. $100,000
c. $200,000
d. None of the Options
34. How much is the Final Withholding Tax Due on the amount received from Interest from USA dollar
bank deposit, First USA Bank, New York, 400,000?
a. 40,000
b. 80,000
c. 100,000
d. None of the Options
35. How much is the Final Withholding Tax Due on the amount received from Prize amounting to
P400,000, IRAQ?
a. 100,000
b. 40,000
c. 80,000
d. None of the Options
36. How much is the Final Withholding Tax Due on the amount received from Interest from Japanese yen
bank deposit, Sumitomo Bank, Japan, 100,000?
a. 20,000
b. Exempt
c. 10,000
d. None of the Options
37. An individual taxpayer holds shares of stock as investment (P280,000 par value). During the current
year, he sells the share he bought for P100,000 for P180,000 directly to a buyer. How much is the capital
gains tax and documentary stamp tax on the sale, if any?
a. 8,000
b. 12,000
c. 16,000
d. None of the Options
Questions 38-50
A married resident citizen supports three (3) qualified dependent children and a brother-in-law who is a
PWD, unmarried and not gainfully employed. He has the following data on income and expenses for the
year 2020:
Salary, Philippines
P 560,000
Gross business income, Philippines (gross sales, P1,700,000)
500,000
Business expenses, Philippines
180,000
Gross business income, USA (gross sales, P1,500,000)
900,000
Business expenses, USA
300,000
Interest income from bank deposit, Philippines
50,000
Interest income from bank deposit, USA
70,000
Interest income from domestic depository bank under EFCDS
80,000
Interest income from a debt instrument not within the coverage of deposit substitute,
Philippines, gross of 15% creditable withholding tax (issue price is P300,000)
50,000
Interest income from a debt instrument within the coverage of a deposit substitute,
Philippines
(issue price P500,000)
60,000
Royalty on book published in the Philippines
100,000
Prize in a contest he joined in the Philippines
5,000
Philippine Charity Sweepstakes winnings
1,000,000
Gain from sale of shares of stock not traded through the local stock exchange
(P200,000 par value)
150,000
Dividend received from a domestic corporation
40,000
Tax payments, first three (3) quarters
100,000
38. How much is the Final Withholding Tax Due on Interest income from bank deposit, Philippines?
a. Exempt
b. 20,000
c. 10,000
d. None of the Options
39. How much is the Final Withholding Tax Due on Interest income from domestic depository bank under
EFCDS?
a. 12,000
b. 8,000
c. 16,000
d. None of the Options
40. How much is the Final Withholding Tax Due on Interest income from a debt instrument (a deposit
substitute), Philippines?
a. 10,000
b. 6,000
c. 12,000
d. None of the Options
41. How much is the Final Withholding Tax Due on Royalty on book published in the Philippines?
a. 10,000
b. Exempt
c. 20,000
d. None of the Options
42. How much is the Final Withholding Tax Due on Philippine Charity Sweepstakes winnings?
a. 200,000
b. 100,000
c. Exempt
d. None of the Options
43. How much is the Final Withholding Tax Due on Dividend received from a domestic corporation?
a. 2,000
b. 8,000
c. 4,000
d. None of the Options
44. How much is the Final Withholding Tax Due on Interest income from bank deposit, USA?
a. 14,000
b. 7,000
c. 0
d. None of the Options
45. How much is the Final Withholding Tax Due on Interest income from a debt instrument not a deposit
substitute, Philippines?
a. 0
b. 5,000
c. 10,000
d. None of the Options
46. How much is the Final Withholding Tax Due on Prize in a contest he joined?
a. 1,000
b. 500
c. 0
d. None of the Options
47. How much is the Final Withholding Tax Due on Gain from sale of shares of stock not traded through
the local stock exchange?
a.30,000
b. 22,500
c. 15,000
d. None of the Options
48. How much is the Taxable Income declared in the Income Tax Return?
a. 920,000
b. 1,400,000
c. 560,000
d. None of the Options
49. How much is the Tax Due declared in the Income Tax Return?
a. 130,000
b. 371,500
c. 241,500
d. None of the Options
50. How much is the Tax Payable declared in the Income Tax Return?
a. 264,000
b. 107,500
c. 264,500
d. None of the Options
Questions 51 to 61
A resident alien individual supports two (2) qualified dependent adopted children and a foster child. He
asks you to assist him in the preparation of his tax return for his income in 2020. He provides you the
following information:
Gross business income, Philippines (gross sales, P3,000,000)
Gross business income, Japan (gross sales, P7,000,000)
Business expenses, Philippines
Business expenses, Japan
Philippine Charity Sweepstakes winnings
Japanese Sweepstakes winnings
Interest income, Bank of Tokyo, Japan
Interest income received from a depository bank under EFCDS, Philippines
Interest on peso bank deposit, Philippines
Income taxes paid for the first three (3) quarters
P 1,000,000
5,000,000
200,000
800,000
500,000
400,000
100,000
300,000
100,000
50,000
51. Can the taxpayer avail of the 8% income tax rate?
a. NO
b. YES
c. MAYBE
d. None of the Options
52. How much is the Income Tax Due if he avail of the 8% income tax rate?
a. 210,000
b. 220,000
c. 230,000
d. None of the Options
53. How much is the Income Tax Payable if he avail of the 8% Income Tax Rate, after deducting the tax
payments of the first 3 quarters?
a. 160,000
b. 170,000
c. 180,000
d. None of the Options
54. How much is the Final Withholding Tax on the Philippine Charity Sweepstakes winnings?
a. 50,000
b. 100,000
c. Exempt
d. None of the Options
55. How much is the Final Withholding Tax on the Interest income received from a depository bank
under EFCDS?
a. 30,000
b. 45,000
c. 60,000
d. None of the Options
56. How much is the Final Withholding Tax on the Interest on peso bank deposit, Philippines?
a. 20,000
b. 10,000
c. Exempt
d. None of the Options
57. How much is the Final Withholding Tax on the Japanese Sweepstakes winnings?
a. 40,000
b. 0
c. 80,000
d. None of the Options
58. How much is the Final Withholding Tax on the Interest income, Bank of Tokyo, Japan?
a. 10,000
b. 20,000
c. 0
d. None of the Options
59. Assuming the taxpayer failed to avail of the 8% income tax, how much is his taxable income?
a. 700,000
b. 900,000
c. 600,000
d. None of the Options
60. Assuming the taxpayer failed to avail of the 8% income tax, how much is the Income Tax Due?
a. Exempt
b. 130,000
c. 100,000
d. None of the Options
61. Assuming the taxpayer failed to avail of the 8% income tax, how much is his Income Tax Payable,
after deduction the tax payments for the first three quarters?
a. 80,000
b. 70,000
c. 60,000
d. None of the Options
Questions 61 to 65
An individual taxpayer, married, and with two (2) qualified dependent children, has the following data
for the year 2020:
Gross business income
P1,000,000
Long term capital loss
130,000
Short term capital loss
180,000
Deductions
350,000
62. How much can be allowed as deduction on Short term capital loss?
a. 180,000
b. 90,000
c. O
d. None of the Options
63. How much can be allowed as deduction on Long term capital loss?
a. 130,000
b. 65,000
c. 0
64. How much is the Taxable Net Income?
a. 210,000
b. 360,800
c. 0
65. How much is the Income Tax Due and Payable?
a. 0
b. 90,200
c. 130,000
d. None of the Options
d. None of the Options
d. None of the Options
Questions 66-70
Minhyuk, a resident citizen and a rank-and-file employee, received the following during the calendar
year 2024 from his sole employer:
Basic pay
Overtime pay
Commissions
13th month pay
14th month pay
Rice allowance
Uniform allowance
Benefits under a collective bargaining agreement
Christmas gift
3,590,000
460,000
570,000
100,000
100,000
50,000
44,000
111,500
110,000
During the same year, the following items were deducted from his salaries:
Withholding tax
300,000
SSS deductions
15,000
Philhealth deductions
2,500
Deductions for union dues
13,000
Deductions for the birthday party of the boss
800
Total deductions
211,300
66. How much is the exempt benefits of the taxpayer?
a. 29,000
b. 28,000
c. 9,000
d. None of the Options
67. How much is the taxable benefits of the taxpayer?
a. 382,500
b. 291,000
c. 392,500
d. None of the Options
68. How much is the taxable compensation income of the taxpayer?
a. 5,012,500
b. 4,992,000
c. 4,882,500
d. None of the Options
69. How much is the Income Tax Due?
a. 1,197,100.00
b. 1,297,100.00
c. 1,097,100.00
d. None of the Options
70. How much is the Income Tax Payable?
a. 0
b. 996,100
c. 997,100.00
d. None of the Options