1. After working for 30 years. Rufino retired from his employment on December 31, 2018 as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. After working for 30 years. Rufino retired from his employment on December 31, 2018 as an accountant of Snail Corporation. As a consequence of his retirement due to old age, he received the following from his employer: Salary for December, 2018 13th month pay Cash gift Retirement pay Terminal leave pay Longevity pay Rice allowance per month Clothing allowance Loyalty award Proceeds of life insurance which have matured (premiums paid, P200,000) 2. Basic salary (minimum wage) Overtime pay Holiday pay Night shift differential pay Hazard pay How much is subject to tax? a. 92,000 b. None 300,000 If the company maintains a private benefit plan for its employees, the income subject to tax of Rufino is: a. 352,500 b. 627,500 c. 404,500 3. Basic salary (government employee) Personnel Economic Relief Allowance (PERA) Additional Compensation Allowance (ACA) Total monthly contributions: GSIS premium Philhealth Pag-Ibig c. 21,000 Employer P1,350.00 P 25,000 25,000 2,500 412.50 300.00 750,000 120,000 30,000 2,000 8,000 20,000 d. 400,000 P 80,000 12,000 6,000 3,000 12,000 d. 113,000 P180,000 36,000 24,000 Employee P1,800.00 412.50 300.00 OAVIS How much is the taxable compensation income? a 173,850 b. 177,488 Onc Case 1 Case 2 Case 3 Case 4 a. Case 1 only a. Cases 1 and 2 a. 4. In which of the following cases below would exempt the retiring employee to an income tax on his retirement benefit? Private Years in Service 12 9 15 11 Benefit Plan? Yes Yes No Yes C. 6. A tax exclusion is defined as: C. None Retirement Age 40 5. Which of the following benefits/gratuity is taxable? a. Lifetime monthly gratuity of P75,000 to a medal of valor awardee. b. The terminal leave pay consisting of the accumulated vacation and sick leave credits of an employee of the Supreme Court. c. Retirement benefit per Collective Bargaining Agreement although the early retirement is against the will of the employee. d. Separation or severance pay received in the form of residential lots as a consequence of continued losses. 60 65 55 a. Exempt from income tax b. Subject to final tax d. 149,850 c. Cases 2, 3 and 4 d. Case 4 only an item or amount which the law allows to be deducted from gross income in order to arrive at net income. b. the grant of immunity to particular persons or corporations from a tax which others within the same taxing district are obliged to pay. income received but which is not taxable as it is exempted by law or treaty, d. a deduction from income tax due of any amount paid to a foreign country, subject to limitation 7. The proceeds of insurance taken by a corporation on the life of the President to indemnify it against loss in case of his death is: c. Part of taxable income d. Partly exempt, partly taxable 1. After working for 30 years. Rufino retired from his employment on December 31, 2018 as an accountant of Snail Corporation. As a consequence of his retirement due to old age, he received the following from his employer: Salary for December, 2018 13th month pay Cash gift Retirement pay Terminal leave pay Longevity pay Rice allowance per month Clothing allowance Loyalty award Proceeds of life insurance which have matured (premiums paid, P200,000) 2. Basic salary (minimum wage) Overtime pay Holiday pay Night shift differential pay Hazard pay How much is subject to tax? a. 92,000 b. None 300,000 If the company maintains a private benefit plan for its employees, the income subject to tax of Rufino is: a. 352,500 b. 627,500 c. 404,500 3. Basic salary (government employee) Personnel Economic Relief Allowance (PERA) Additional Compensation Allowance (ACA) Total monthly contributions: GSIS premium Philhealth Pag-Ibig c. 21,000 Employer P1,350.00 P 25,000 25,000 2,500 412.50 300.00 750,000 120,000 30,000 2,000 8,000 20,000 d. 400,000 P 80,000 12,000 6,000 3,000 12,000 d. 113,000 P180,000 36,000 24,000 Employee P1,800.00 412.50 300.00 OAVIS How much is the taxable compensation income? a 173,850 b. 177,488 Onc Case 1 Case 2 Case 3 Case 4 a. Case 1 only a. Cases 1 and 2 a. 4. In which of the following cases below would exempt the retiring employee to an income tax on his retirement benefit? Private Years in Service 12 9 15 11 Benefit Plan? Yes Yes No Yes C. 6. A tax exclusion is defined as: C. None Retirement Age 40 5. Which of the following benefits/gratuity is taxable? a. Lifetime monthly gratuity of P75,000 to a medal of valor awardee. b. The terminal leave pay consisting of the accumulated vacation and sick leave credits of an employee of the Supreme Court. c. Retirement benefit per Collective Bargaining Agreement although the early retirement is against the will of the employee. d. Separation or severance pay received in the form of residential lots as a consequence of continued losses. 60 65 55 a. Exempt from income tax b. Subject to final tax d. 149,850 c. Cases 2, 3 and 4 d. Case 4 only an item or amount which the law allows to be deducted from gross income in order to arrive at net income. b. the grant of immunity to particular persons or corporations from a tax which others within the same taxing district are obliged to pay. income received but which is not taxable as it is exempted by law or treaty, d. a deduction from income tax due of any amount paid to a foreign country, subject to limitation 7. The proceeds of insurance taken by a corporation on the life of the President to indemnify it against loss in case of his death is: c. Part of taxable income d. Partly exempt, partly taxable
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below 1 Proceeds of life insurance which have matured premiums paid P200000If the company maintains a private benefit plan for its employees the ... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these finance questions
-
Victor is 63 years old and retired from his employment with Meter Ltd., a Canadian public corporation, on September 30, 20X8. Victor has asked you to help him prepare his 20X8, tax return and to...
-
An employee received the following from their employer during a taxation year: 1) a $55,000 salary, 2) a watch valued at $200 as a birthday gift, and 3) a $15,000 low-interest loan with a 1% interest...
-
An employer provides all of his employees with life insurance protection equal to twice the employee's annual salary. Melba, age 42, has an annual salary of $70,000. Is Melba required to recognize...
-
Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit his job in order to care for his child, who was being watched by a babysitter for $10,000 per...
-
What are senior, subordinated, and senior subordinated bonds?
-
The following jobs are waiting to be processed at Rick Solanos machine center. Solanos machine center has a relatively long backlog and sets a fresh schedule every 2 weeks, which does not disturb...
-
Bernard Windows is a small company that installs windows. Its cost structure is as follows: Bernard is considering changing its sales compensation for next year. Bernard would pay salespeople a 5%...
-
As noted in the case, there was an almost complete turnover of the staff assigned to the New Century audit engagement team from 2004 to 2005. What quality control mechanisms should accounting firms...
-
: The system of forces shown in figure is in equilibrium Calculate the unknown force 'P' and angle '0'. P 60 N 45 100 N 60 40 N 80 N
-
Use the superposition principle to find io and vo in the circuit Fig. 4.79? Figure 4.79 For Prob. 4.11. 10 10 20 6 A 40 4 +30 V 10
-
Define the characteristics of a Service that distinguishes it from a product. There are two kinds of service companies, machine based and people based, describe and give an example of each.
-
Use the wheel of retailing concept to explain the evolution in market growth of a neighborhood urgent care medical center that treats minor emergencies.
-
Give an example of a sales related objective for a retailer and an acquisition objective for a direct marketer, and explain the distinction clearly.
-
Outline the advertising copy an account- able care organization would use in advetisements that are (a) competitive, product-based, (b) pioneering institutional, and (c) reminder institutional.
-
Reorganize the code of the sorting animation in Section 22.6 so that it can be used for generic animations. Provide a class Animated with abstract methods public void run() public void draw (Graphics...
-
Design an XML document that describes a purse containing three quarters, a dime, and two nickels.
-
Your small firm invests $120,939 today and expects to receive 8 annual payments of $21,450 (the first payment will be paid one year from today). If the appropriate interest rate to use of 10% per...
-
For the next several days, take notes on your listening performance during at least a half-dozen situations in class, during social activities, and at work, if applicable. Referring to the traits of...
-
What is a holding corporation?
-
Pan Li Ltd. is a Canadian private corporation owned 100% by David Benjamin. The corporation operates an active business. Its most recent statement of financial position is summarized in the table...
-
Why is the category other deductions considered to be the last test for determining the deductibility of an expenditure?
-
Describe the five-step decision-making process.
-
Key success factors. Dalworth Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list...
-
How is financial accounting different from management accounting?
Study smarter with the SolutionInn App