Ms. El surrendered her life insurance policy and received a cash surrender value of P800,000 after contributing P700,000 in annual premiums. Determine the total exclusion in gross income and the inclusion in gross income,respectively.__________

2.Mr. John died. His heirs collected the P2,000,000 proceeds of his life insurance policy. Mr. John previously paid a total payment of P500,000 in premiums. What is the exclusion in gross income and inclusion in gross income, respectively?_________________

3.Mr. Zara collected the P1,000,000 insurance proceeds of Mr. Pantuk which he bought from the latter for P400,000. Before the death of Mr. Pantuk, Mr, Zara paid a total premiums of P200,000. What is the exclusion in gross income and inclusion in gross income, respectively?_______________

4.Mr. Bean collected the P5,000,000 fire insurance proceeds of his building which was destroyed by fire. The building had a tax basis of P4,500,000 at the occurrence of the fire. What is the total exclusion in gross income and inclusion in gross income, respectively?______________

5.Mr. K insured his crops for a P1,000,000 insurance cover against calamities. He paid P100,000 insurance premium. What is the amount to be included in gross income?_____________

 

6. Ms. Henrieta retired from her job after 25 years of service. She joined the company at the age of 23 and was promoted from an accounting clerk to VP Finance. She was paid P2,000,000 total retirement pay from the employer's contributory pension plan which was duly registered with the BIR. Out of the total proceeds, Ms. Henrieta contributed P600,000. This was her first retirement from employment. How much is excluded in gross income?______________

7.The following relates to the compensation income of Ms. Eva in 2018:

 

Compensation                                                                    P900,000

Contributions to SSS, Philhealth and HDMF:

-mandatory contributions                                                 125,000

-voluntary contributions                                                    150,000

Creditable withholding taxes                                           190,000

 

Employer's share in SSS, Philhealth and HDMF         105,000

 

What is the total exclusion in gross income?____________

 

8.In 2017, Ms. Dinah invested in the 10-year bonds of Compostela Mining Corp. P8,000,000. She disposed the investment in 2019 for a total consideration of P8,500,000 inclusive of the P400,000 accrued interest. What is the inclusion in gross income and exclusion in gross income, repectively?_____________

9.Mr. Uso is a minimum wage earner. He was paid the following benefits in 2018;

 

Minimum wage                                                                   P200,000

Holiday pay                                                                         10,000

Overtime pay                                                                      20,000

Night shift differential pay                                               12,000

Hazard pay                                                                          12,000

What is the total exclusion in gross income?________________

 

10. The following income relates to a proprietorship registered as BMBE:

 

Gross income from sales                                                   P400,000

Dividend income-domestic                                              9,000

Interest on deposits                                                            6,800

 

Compute the total exclusion in gross income subject to regular tax.

Answer rating: 100% (QA)

1 In general the exclusion in gross income for the surrender of a life insurance policy is limited to the amount that does not exceed the total premiums paid Any amount received in excess of the premi... View the full answer