If husband and wife are both employed, which is correct regarding their income tax exemption in the tax table? A. Each spouse shall be entitled to a P250,000 income tax exemption in the tax table. B. Each spouse is allowed P500,000 income tax exemption in the tax table C. Either the husband or the wife can take advantage of the P500,000 income exemption in the tax table. D. Only the husband shall be allowed P250,000 income tax exemption in the tax table.   What is the basis of the computation of the optional income tax?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter9: Individuals As Taxpayers
Section: Chapter Questions
Problem 25P
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If husband and wife are both employed, which is correct regarding their income tax exemption in the tax table?

A. Each spouse shall be entitled to a P250,000 income tax exemption in the tax table.
B. Each spouse is allowed P500,000 income tax exemption in the tax table
C. Either the husband or the wife can take advantage of the P500,000 income exemption in the tax table.
D. Only the husband shall be allowed P250,000 income tax exemption in the tax table.
 
What is the basis of the computation of the optional income tax?
 
A. Net taxable income
B. Goss sales/receipt in excess of P250,000
C. Net compensation income
D. Gross sales/receipt
 
As a rule non-profit, non-stock corporations are exempt from income tax. which of these non-profit entities is subject to income tax?
 
A. Association
B. School
C. Farmers' cooperative
D. Hospital
 
Benguet State University, a public educational institution, is:
 
A. Subject to income tax at preferential rate
B. Subject to income tax at the regular rate
C. Subject to both regular and preferential income tax
D. Exempt from corporate income tax.
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