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Multiple In 2019, Mr. Pacino was employed as account officer in a non-life insurance company. account totaled P4.2 million. He is likewise entitled to representation allowance of He received P8,000 basic monthly salary. In addition, he gets 5% of gross premium as commission on policies issued under his account. In 2019, gross premiums under his P1,000 a month. . How much is to be included as gross income in 2019? a. P96,000 b. Р306,000 с. Р318,000 d. exempt

Multiple In 2019, Mr. Pacino was employed as account officer in a non-life insurance company. account totaled P4.2 million. He is likewise entitled to representation allowance of He received P8,000 basic monthly salary. In addition, he gets 5% of gross premium as commission on policies issued under his account. In 2019, gross premiums under his P1,000 a month. . How much is to be included as gross income in 2019? a. P96,000 b. Р306,000 с. Р318,000 d. exempt

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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commission on policies issued under his account. In 2019, gross premiums under his account totaled P4.2 million. He is likewise entitled to representation allowance of NAME: SCORE: SECTION: PROFESSOR: Multiple Choice-Problems 2019, Mr. Pacino was employed as account officer in a non-life insurance company. a received P8,000 basic monthly salary. In addition, he gets 5% of gross premium as P1,000 a month. How much is to be included as gross income in 2019? a. P96,000 b. P306,000 c. P318,000 d. exempt Mr. Buscemi, the Treasurer of Apollo Corp., receives P25,000 basic salary a month. For being one of the five members of the board of the same corporation, he, in addition, receives P15,000 a month. In December 2019, he received his 13th month pay of P40,000 and productivity incentive of P150,000. 2. Mr. Buscemi's gross income in 2019 is a. P480,000 b. P520,000 c. P670,000 d. P630,000 Julia R., an employee, has the following details relative to her employment in 2019: She consulted the company physician due to headache. Had she consulted another physician, she would have been charged P300 as consultation fee. She received cash from a customer for her efficient service, P5,000. She failed to account for it to her employer. She claimed for the monetized value of her unused leave credits for 8 days. Her daily basic salary is P300. 3. How much is to be considered as compensation income? а. P5,000 b. P7,400 c. P7,700 d. P5,600 Richard G., received the following benefits from his employer in Dècember 2019. Thirteenth month pay P50,000 Christmas bonus 10,000 Productivity incentives pay 16,000 4. The taxable compensation income is a. P76,000 b. P16,000 c. P46,000 d. P2,000 Mr. Arnold S. was iniured in a vehicular accident in 2018. He incurred and paid medical expenses of P40,000 and legal fees of P20,000 during the year. In 2019, he received 140,000 as settlement from the insurance company which insured the car owned by ie other party involved in the accident. Chapter 7: Gross Income l711
Transcribed Image Text:commission on policies issued under his account. In 2019, gross premiums under his account totaled P4.2 million. He is likewise entitled to representation allowance of NAME: SCORE: SECTION: PROFESSOR: Multiple Choice-Problems 2019, Mr. Pacino was employed as account officer in a non-life insurance company. a received P8,000 basic monthly salary. In addition, he gets 5% of gross premium as P1,000 a month. How much is to be included as gross income in 2019? a. P96,000 b. P306,000 c. P318,000 d. exempt Mr. Buscemi, the Treasurer of Apollo Corp., receives P25,000 basic salary a month. For being one of the five members of the board of the same corporation, he, in addition, receives P15,000 a month. In December 2019, he received his 13th month pay of P40,000 and productivity incentive of P150,000. 2. Mr. Buscemi's gross income in 2019 is a. P480,000 b. P520,000 c. P670,000 d. P630,000 Julia R., an employee, has the following details relative to her employment in 2019: She consulted the company physician due to headache. Had she consulted another physician, she would have been charged P300 as consultation fee. She received cash from a customer for her efficient service, P5,000. She failed to account for it to her employer. She claimed for the monetized value of her unused leave credits for 8 days. Her daily basic salary is P300. 3. How much is to be considered as compensation income? а. P5,000 b. P7,400 c. P7,700 d. P5,600 Richard G., received the following benefits from his employer in Dècember 2019. Thirteenth month pay P50,000 Christmas bonus 10,000 Productivity incentives pay 16,000 4. The taxable compensation income is a. P76,000 b. P16,000 c. P46,000 d. P2,000 Mr. Arnold S. was iniured in a vehicular accident in 2018. He incurred and paid medical expenses of P40,000 and legal fees of P20,000 during the year. In 2019, he received 140,000 as settlement from the insurance company which insured the car owned by ie other party involved in the accident. Chapter 7: Gross Income l711
10. The gross income of Ms. J, is Veteran Poultry employs the cash basis of accounting for its poultry business. For the following data on the retirement pay she received in 2019: In the 2019 records of taxpayer Jennifer L., the following items relate to the different Ms. Ashley J. is an employee in a firm which gives fringe benefits to its rank-and-file and employees, but not registered with the Bureau of Internal Revenue, Ms. J. had the employees. In a retirement benefit plan, contributory on the part of both the employer Interest income of the fund on the above contributions in 2019 is d. P100,000 b. PS0,000 c. P140,000 a. zero Veteran Poultry employs the cash basis of accounting for its poultry business, For taxable year 2019, it has the following data: Contributions by the employer P500,000 250,000 300,000 100,000 Contributions by Ms. J. Comcest income of the fund on the above contributions P120,000 30,000 10,000 P160,000 Cash sales on livestock raised Total amount received Sales of livestock purchased Cost of sales Other income 10 The gross income of Ms. J, is a. zero b. P160,000 C. P120,000 he 2019 records of taxpayer Jennifer L, the following items relate to the different 6. The gross income in 2019 is d. P130,000 d. P850,000 policies she obtained: Received by the taxpayer under policies: Proceeds of life insurance (as beneficiary of mother) Proceeds of life insurance (as beneficiary of father) Insurance purchased from the father at cost to taxpayer of Additional premiums paid by the taxpayer to continue the policy Amount received upon the death of the father Proceeds of endowment policy, upon maturity, with premium payments made of P1,600,000 Proceeds of comprehensive car insurance Crop insurance, from crop destroyed by typhoon a. P550,000 b. P450,000 c. P750,000 Cameron D., a sole proprietor bas the following data in 2019, its first year . merchandising: P 800,000 Gross sales Cost of goods sold Other income Selling expenses Depreciation expense P300,000 150,000 50,000 20,000 4,000 1,200,000 400,000 100,000 1,000,000 7. How much is Cameron's gross income? 2,000,000 а. РЗ00,000 b. P150,000 c. P200,000 d. P224,000 200,000 11 The income from the amounts received is: 100,000 In addition to the compensation being received by Ms. Lynn R. as employee, she leases out her 3-door apartment for P10.000 a month each unit. Her compensation income for 2019 consists of P13,000 basic salary a month, 13th month pay based on basic salary plus P25,000 bonus. As rovalties, she received P113.000 for the book she wrote; and P80,000 for her property that is planted with pineapples. a. P4,600,000 b. P1,000,000 c. P1,200,000 d. P100,000 The following are recoveries in 2019 of bad debt previously written off by Patrick S., the taxpayer: No. 1: P40,000 from accounts written off in a year which had a net income of P400,000 before 8. The amount to be included as gross income in 2019 is write-off (write-off for the year was P40,000); No. 2: P10,000 from accounts written off in a year which had a net loss before write off of P72,000 (write-off for the year was P10,000); No. 3: P20,000 from accounts written off in a year which had a net income of P16,000 before a. P717,000 b. P747,000 c. P596,000 d. P524,000 Mr. Ricky M. was insured under an endowment policy with a value of P1,000,000. Total premiums paid by him during the term of premium payments on the policy was P980,000, from which there was a return of premiums of P80,000. At the maturity of the policy in 2019, Mr. M. received P1,000,000. write-off and a write-off for P24,000. 12. The income from the bad debt recovery is 9. The income of Mr. M. under the policy is a. P70,000 b. Р40,000 c. P52,000 d. P60,000 a. zero b. P1,000,000 c. P20,000 d. P100,000 Chanter 7: Grocc Incoma
Transcribed Image Text:10. The gross income of Ms. J, is Veteran Poultry employs the cash basis of accounting for its poultry business. For the following data on the retirement pay she received in 2019: In the 2019 records of taxpayer Jennifer L., the following items relate to the different Ms. Ashley J. is an employee in a firm which gives fringe benefits to its rank-and-file and employees, but not registered with the Bureau of Internal Revenue, Ms. J. had the employees. In a retirement benefit plan, contributory on the part of both the employer Interest income of the fund on the above contributions in 2019 is d. P100,000 b. PS0,000 c. P140,000 a. zero Veteran Poultry employs the cash basis of accounting for its poultry business, For taxable year 2019, it has the following data: Contributions by the employer P500,000 250,000 300,000 100,000 Contributions by Ms. J. Comcest income of the fund on the above contributions P120,000 30,000 10,000 P160,000 Cash sales on livestock raised Total amount received Sales of livestock purchased Cost of sales Other income 10 The gross income of Ms. J, is a. zero b. P160,000 C. P120,000 he 2019 records of taxpayer Jennifer L, the following items relate to the different 6. The gross income in 2019 is d. P130,000 d. P850,000 policies she obtained: Received by the taxpayer under policies: Proceeds of life insurance (as beneficiary of mother) Proceeds of life insurance (as beneficiary of father) Insurance purchased from the father at cost to taxpayer of Additional premiums paid by the taxpayer to continue the policy Amount received upon the death of the father Proceeds of endowment policy, upon maturity, with premium payments made of P1,600,000 Proceeds of comprehensive car insurance Crop insurance, from crop destroyed by typhoon a. P550,000 b. P450,000 c. P750,000 Cameron D., a sole proprietor bas the following data in 2019, its first year . merchandising: P 800,000 Gross sales Cost of goods sold Other income Selling expenses Depreciation expense P300,000 150,000 50,000 20,000 4,000 1,200,000 400,000 100,000 1,000,000 7. How much is Cameron's gross income? 2,000,000 а. РЗ00,000 b. P150,000 c. P200,000 d. P224,000 200,000 11 The income from the amounts received is: 100,000 In addition to the compensation being received by Ms. Lynn R. as employee, she leases out her 3-door apartment for P10.000 a month each unit. Her compensation income for 2019 consists of P13,000 basic salary a month, 13th month pay based on basic salary plus P25,000 bonus. As rovalties, she received P113.000 for the book she wrote; and P80,000 for her property that is planted with pineapples. a. P4,600,000 b. P1,000,000 c. P1,200,000 d. P100,000 The following are recoveries in 2019 of bad debt previously written off by Patrick S., the taxpayer: No. 1: P40,000 from accounts written off in a year which had a net income of P400,000 before 8. The amount to be included as gross income in 2019 is write-off (write-off for the year was P40,000); No. 2: P10,000 from accounts written off in a year which had a net loss before write off of P72,000 (write-off for the year was P10,000); No. 3: P20,000 from accounts written off in a year which had a net income of P16,000 before a. P717,000 b. P747,000 c. P596,000 d. P524,000 Mr. Ricky M. was insured under an endowment policy with a value of P1,000,000. Total premiums paid by him during the term of premium payments on the policy was P980,000, from which there was a return of premiums of P80,000. At the maturity of the policy in 2019, Mr. M. received P1,000,000. write-off and a write-off for P24,000. 12. The income from the bad debt recovery is 9. The income of Mr. M. under the policy is a. P70,000 b. Р40,000 c. P52,000 d. P60,000 a. zero b. P1,000,000 c. P20,000 d. P100,000 Chanter 7: Grocc Incoma
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