62. How much is the total EXCLUSIONS FROM GROSS INCOME?
Consider the following in answering the questions below:
Nicanor, a forty-four-year-old loveless, is employed by ABC Corp. for the past thirty (30) years. Below are the compensation and other benefits he received from the company the year 2021.
13th Month Pay 100,000
De Minimis benefits 30,000
Statutory contributions (SSS, PHIC, etc) 20,000
Basic Salary per month 100,000
Monthly Representation Allowance 50,000
Monthly Transportation Allowance 50,000
Cost of Living Allowance 50,000
Fixed Housing Allowance 50,000
Commission 100,000
Profit-Sharing 100,000
Hazard Pay 50,000
Overtime Pay 100,000
In 2022, ABC Corp. suffered serious business reverses. The Company, to temper losses, offered retirement or separation benefits to employees.
62. How much is the total EXCLUSIONS FROM GROSS INCOME?
A. Php 150,000
B. Php 140,000
C. Php 110,000
D. Php 90,000
63. How much is the total TAXABLE COMPENSATION?
A. Php 1,750,000
B. Php 1,760,000
C. Php 1,770,000
D. Php 1,780,000
64. If Nicanor will avail the retirement benefits under the Company's retirement plan effective January 1, 2022? The possible tax exposure if Nicanor will receive Php 1,000,000 is?
A. Php 0
B. Php 175,000
C. Php 180,000
D. Php 190,000
65. Assuming ABC Corp. has no retirement plan and Nicanor availed of the offer of retirement benefit in the amount of Php 1,000,000 as proposed by the Company, the possible tax exposure is?
A. Php 0
B. Php 175,000
C. Php 180,000
D. Php 190,000
66. If Nicanor will be forced to resign because of the losses, the possible tax exposure on the separation pay
is?
A. Php 0
B. Php 175,000
C, Php 180,000
D. Php 190,000
67. If Nicanor is a septuagenarian, the possible tax exposure on the retirement pay assuming ABC Corp. has no retirement plan is? Php 1,000,000
A. Php 190,000
B. Php 175,000
C. Php 180,000
D. Php 0
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