1. Compensation income earners may deduct the following from their gross income to arrive at taxable income:

a. Itemized Deductions

b. Optional Standard Deductions

c. First P250,000

d. None of the above

2. If no method for claiming deductions was declared during the filing of the income tax return for the first quarter, the method used to arrive at taxable income is: *

a. Optional Standard Deduction (OSD)

b. Itemized Deductions

c. First P250,000

d. None of the above

3. Optional Standard Deduction for individual taxpayers is equal to:

a. 40% of Gross Income

b. 40% of Gross Sales/Receipts

c. 60% of Gross Income

d. 60% of Gross Sales/Receipts

4. For mixed income earners availing of the optional standard deduction, compensation income is added to arrive at the basis for OSD.

a. true

b. false

5. For mixed income earners availing of the 8% income tax rate:

a. Income from business/profession and compensation income are added together. P250,000 is deducted to arrive at the taxable income subject to 8% income tax.

b. Income from business/profession is subtracted by P250,000 to come up with the taxable income from business subject to 8% income tax rate. The graduated tax table is used for compensation income to come up with the tax due and this is added to the 8% tax on business/profession.

c. Income from business/profession is subjected to the 8% income tax rate. The graduated tax table is used for compensation income to arrive at the tax due and this is added to the 8% tax on business/profession.

d. Any of the above.

6. Passive income not subject to final withholding tax is

a. Included in gross income subject to regular income tax.

b. Still subject to final withholding tax.

c. Subject to capital gains tax.

d. Included in gross income but also availed as deduction.

7. A taxpayer who successfully availed of the 8% income tax rate does not have to pay other percentage business taxes.

a. true

b. false

8. Saitama is an operator of a taxi performing carrier services to the locals of Pampanga. Can he avail of the 8% income tax rate?

a. Yes

b. No

9. Mocha earned P550,000 during the taxable year as compensation income from U-Zone Company. Can Mocha avail of the 8% income tax rate?

a. yes

b. no

10. Deku owns a convenience store that had generated gross sales of P3,200,000. The cost of goods sold amounted to P350,000. Can Deku avail of the 8% income tax rate?

a. Yes

b. No

11. Leonardo DiCapre is a professional who earned P2,950,000 during the taxable year. He also earned P50,000 other income. Can Leonardo avail of the 8% income tax rate?

a. Yes

b. No

12. Vegeta Bowls was required to be registered as a VAT Taxpayer. Despite this, Vegeta still chose NOT to register. Can Vegeta avail of the 8% income tax rate?

a. Yes

b. No

13. Jhin Bee was not required to be registered as a VAT Taxpayer but still decided to register. Can Jhin avail of the 8% income tax rate?

a. Yes

b. No

14. In 2018 Hydro Flocks, Inc. had gross sales of P1,500,000 during the year. Can Hydro Flocks, Inc. avail of the 8% Income tax?

a. Yes

b. No

15. In 2017, Terry Cruise had gross receipts of P800,000. Can Terry avail of the 8% income tax rate?

a. Yes

b. No

Answer rating: 100% (QA)

1 Compensation income earners may deduct the following from their gross income to arrive at taxable income aItemized Deductions Compensation income earners can deduct itemized deductions from their gr... View the full answer