CPA REVIEW SCHOOL OF THE PHILIPINES
Manila
First Preboard Examination Solutions
Taxation Llamado/De Vera
1 B 11 D 21 D 31 B
2 B 12 A 22 A 32 C
3 A 13 B 23 D 33 D
4 C 14 C 24 D 34 D
5 A 15 A 25 D 35 B
6 C 16 A 26 D 36 B
7 A 17 D 27 A 37 A
8 D 18 D 28 A 38 C
9 D 19 D 29 D 39 A
10 D 20 C 30 A 40 A
41. A
Gross pay, given 2,450,100
Add: 13th MPOBs 165,000
DM FBs 5,000
Gross compensation income 2,620,100
Less:
Mandatory Contributions (12,455)
First 90,000 of 13th MPOBs (90,000)
DM FBs (5,000)
Taxable Compensation
income 2,512,645
42. C
43. C
44. B
45. B
46. C
47. C
48. C
49. C
50. A
51. A
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52. C
Ryza’s daily wage rate is above the prevailing SMW in Region 12 which
makes it taxable and subject to withholding.
53. D
An MWE, who also earns income from trade or business, shall be considered a mixed income
earner.
His minimum wage shall remain to exempt from tax.
If qualified, he may choose his income from trade or business to be taxed under the 8% option.
However, because he is considered a mixed income earner, he will not be allowed the
₱250,000 deduction in computing the base for the 8% tax.
54. A
Net of FT Gross of FT FT
Royalty income from book 85,000 94,444 9,444.4
Jollibee dividend 10,000 11,111 1,111.1
Total 10,555.5
55. D 56. C 57. C 58. B 59. A 60. C 61. A
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62. C
Solution (number 62)
Annual
Rental receipts, gross of CWT 600,000
Less: Cost of services (100,000)
Gross income from operations 500,000
Less: IDs: OPT paid (18,000)
Net income from operations 482,000
Add: Non-operating income:
Interest income from sister 25,000
Microsoft dividend 75,000
LT capital gain from sale of car 45,000
LT capital loss from liq. dividend (6,500) 38,500
Share in GPP net income -
Total taxable income 620,500
Tax (table) 66,600
Less Credits:
5% CWT on rental income 30,000
Tax paid in 3 previous quarters 9,900 (39,900)
Tax Payable 26,700
63. D
64. D
This is Housing (Case 6) in the list of fringe benefits given to managerial or
supervisory employees. These benefits are not taxable to the employee.
Though they may benefit the employee, they are primarily given for the
benefit and convenience of the employer.
65. A
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66. C
67. A
68. A
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69. A
2022
Sales 1,740,000
Cost of Sales (110,000)
Gross income from operations 1,630,000
Add: Other taxable income not subject to FTs 70,000
Total Gross Income 1,700,000
Less: Itemized Deductions (or OSD) (1,600,000)
Taxable income 100,000
RCIT (25%) 25,000
MCIT (1%) 17,000
Tax due 2022 (RCIT) 25,000
Less: Tax Credits:
(1) Excess tax credits from prior year (5,800)
(2) Tax paid in previous quarters (1,250)
(3) CWTs (7,400)
(4) Excess MCIT from prior years (10,550)
(5) Foreign tax credits
(6) Tax paid in previous return if filing amended return
Tax payable/(refundable) 0
Excess MCIT (2020-2023) 3,750
Excess MCIT (2021-2024) 10,250
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70. B
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