QUIZ on Chapter 13 B&C

March 16, 2021

 QUIZ INSTRUCTION

1. Get a piece of paper

2. Number it from 1 to 20
3. Start the video recordings uploaded in the GCR
4. Transfer your answers to the google form provided.
5. God bless future CPAs!
 No. 1
For individuals with gross income from business or practice of profession, the following may be deducted
1. Optional standard deduction
2. Itemized deduction
3. Personal exemptions
4. Additional exemptions
5. Premium payments on health and / a hospitalization insurance

A. 1, 2, 3 and 4 C. 3, 4 and 5 and either 1 or 2

B. 2, 3 and 4 D. 1, 2, 3, 4 and 5
 No.2
The following pertains to the salaries paid by taxpayer during the year:
Salaries to regular employees P 560,000
Salaries to senior citizens (above poverty line) 120,000
Salaries to senior citizens (above poverty line) 80,000
Salaries to persons with disability 300,000
Compute the total deductible salaries expense under the regular allowable
itemized deductions:
 No.3
The following pertains to the salaries paid by taxpayer during the year:
Salaries to regular employees P 650,000
Salaries to senior citizens (above poverty line) 65,000
Salaries to senior citizens (above poverty line) 90,000
Salaries to persons with disability 250,000
Compute the total deductible salaries expense under the special allowable
itemized deductions:
 No.4
• Care medical center reported the following expenses during the year:
Breastfeeding assistance to needy P 200,000
Salary of workers (20% senior citizens) -paid 500,000
Salary of workers (20% senior citizens) –unpaid 700,000

If the medical center reported health services revenue of P300,000 how much
is the total SAID?
 No. 5
A Banahaw Realty Corporation participated in Adopt a school program by
contributing its services. The agreed value fixed in the agreement for the
construction of public school is 2,400,000. The actual cost of building is
1800,000.

The RAID is?

 No. 6
A Banahaw Realty Corporation participated in Adopt a school program by
contributing its services. The agreed value fixed in the agreement for the
construction of public school is 2,400,000. The actual cost of building is
1800,000.

The SAID is?

 No. 7
Assuming the program is no longer a priority program and net income of the
corporation before contribution is 15M.A Banahaw Realty Corporation
participated in Adopt a school program by contributing its services. The agreed
value fixed in the agreement for the construction of public school is 2,400,000.
The actual cost of building is 1800,000.

The total RAID and SAID is?

 No.8
BCD employs primarily women. BCD installed a lactation station for its nursing
employees at the following costs:
Remodeling of a space for the lactation station P100,000
Tables and comfortable chairs 200,000
Refrigerator 300,000
Manual and electric breast pumps 400,000
Supplies (sterile milk containers, soaps, etc.) 500,000
The expense deductible as part of RAID is?
 No. 9
BCD employs primarily women. BCD installed a lactation station for its nursing
employees at the following costs:
Remodeling of a space for the lactation station P100,000
Tables and comfortable chairs 200,000
Refrigerator 300,000
Manual and electric breast pumps 400,000
Supplies (sterile milk containers, soaps, etc.) 500,000
The expense deductible as part of SAID is?
 No.10
A government provincial hospital established a milk bank at a cost of 800,000.
Determine the additional deduction incentive allowed under Rooming-in and
Breastfeeding Practices Act.
A. 0
B. 200,000
C. 400,000
D. 800,000
 No. 11
An employer provides manpower training and special studies to its managerial
employees at a total cost of 200,000.The in-house program was accredited by TESDA.
What is the deductible additional productivity incentive bonus expense?
A. 0
B. 20,000
C. 100,000
D. 200,000
 No. 12
Atty. X rendered the following services during the year:
Gross receipts from legal fees P 8,000,000
Value of 60-hours assistance to indigent clients 400,000
Value of other pro-bono services 72,000
Direct cost of services 480,000
Other deductible expenses 3,400,000
The expense deductible as part of SAID is?
 No.13
True or False
The amount of NOLCO shall not include the amount of deduction
incentives allowed by law.
 No.14
In 2020, a taxpayer finally posted a P1,000,000 operating profit after four years
of continuous losses. The results of operations in prior years were:
2016 ( P800,000)
2017 ( 400,000)
2018 ( 200,000)
2019 ( 100,000)
Compute the deductible NOLCO in 2020
 No.15
In 2020, a taxpayer finally posted a P1,000,000 operating profit after four years of
continuous losses. The results of operations in prior years were:
2016 ( P800,000)
2017 ( 400,000)
2018 ( 200,000)
2019 ( 100,000)
Assuming 2016 and 2017 are exempt years for taxpayer, compute the deductible
NOLCO in 2020
 No. 16
Which of the following statements is not correct?

A. The optional standard deduction is an amount equal to forty percent (40%) of the gross
income from business or practice of profession of the taxpayer.
B. The optional standard deduction is not available against compensation income arising out
of an employer-employee relationship
C. The election of Optional Standard Deduction is irrevocable for the taxable year for which
the choice is made.
D. Unless the taxpayer signifies in his return his intention he shall be considered as having
availed of the itemized deduction.
 No.17
True or False

OSD replaces cost of sales/cost of services of

individual taxpayers.
 No.18
The following may be allowed to claim optional standard deduction, except

A. Resident citizen C. Resident alien

B. Non-resident citizen D. Non-resident alien
 No. 19
A retailer of goods, whose accounting method is under the accrual basis, has a
gross sales of P1,000,000 with a cost of sales amounting to P800,000 for year
2009. The taxpayer is qualified to choose OSD as deductions.

Question 19 – How much is the amount of OSD assuming the taxpayer is an

individual.
 No. 20
A retailer of goods, whose accounting method is under the accrual basis, has a
gross sales of P1,000,000 with a cost of sales amounting to P800,000 for year
2009. The taxpayer is qualified to choose OSD as deductions.

Question 20 – How much is the amount of OSD assuming the taxpayer is a

corporation.
END OF QUIZ