1. Mr. Right sold domestic stocks directly to buyers during the taxable year.

Details of which are as follows:

Date Stocks Sales price Cost and Expenses
Jan 15 Common shares 305,000 195,000
Feb 8 Preference Shares 280,000 300,000
May 22 Stock Rights 150,000 70,000
Nov 20 Common Shares 150,000 160,000
Required: (15pts)
- Compute for the Transactional Capital Gains Tax. (12pts)
- Compute for the Annual Capital Gains Tax. (3pts)

2. Mr. Elmin Valdez, resident citizen, rank and file teacher in WU-P. As a professor, Mr. Valdez received a
monthly basic salary of 28,879, he also received 6,000 clothing allowance per year, 500 laundry allowance
per month, 10,000 cash anniversary gift, 1 sack 50 kg rice per month worth 2,350, a platinum medal worth
8,500 for employee of the year award, 12,000 for annual medical check up, 50,000 for 13th and 14th month
pay. At the year end, Mr. Valdez received his BIR Form 2316 from the HR Department and has a creditable
withholding tax on compensation of 36,654.

Aside from his employment, Mr. Valdez also received an annual Interest Income from his business 56,
23,500. He also received a royalty dividend from Rex Bookstore for the publication of his book in
Aerodynamics, amounting to 10,500 per book sold. For this year, Rex Bookstore was able to sell 2 books,
but before Mr. Valdez can get his royalty, he must appear every Sunday in the nearest Rex bookstore in the
town, which he received also a professional fees of 500 per appearance, which he appear 52times this year.

Also in this year, Mr. Valdez sells his only residence on the edge of Cabanatuan City for 3,450,000 with a
zonal value of 1,850,000 and an assessed value for the house of 1,565,000 and for the lot 1,849,999. Mr.
Valdez notifies the BIR 40 days after the sale that he wants to claim the exemption under the code and he
purchase his new residence in Talugtug, Guimba for 3,500,000.

Required: (18pts)
- Compute for the Income Tax Payable of Mr. Valdez for this year, assuming he is single with 2 senior citizen
parents living with him. (5pts)
- Compute for the Income Tax Payable of Mr. Valdez for this year, assuming he is married with no
dependents (3pts)
- Compute for the Income Tax Payable of Mr. Valdez for this year, assuming he is single with 3 dependents
(5pts)
- Compute the Final Withholding Tax Paid by Mr. Valdez. (2pts)
- Compute the Capital Gains Tax Paid by Mr. Valdez, if there is any. (3pts)
 3. The following data for the year 2014 of a resident rank-and-file employee, who has dependent, are made
available:
Dependents:

Legally adopted child, 5 years old, living with the taxpayer

Illegitimate child, 3 years old, living with the taxpayer
Supporting her 18 year-old daughter and the husband of her daughter, living with the taxpayer and
dependent for their chief support. (Marriage occurred during the taxable year of 2013)
Legitimate child by a former marriage, 8 years old
Supporting one minor child sired by her boyfriend who is legally separated from his wife
Illegitimate son, 23 years old, has mental and physical defect
Salary, net of P10,000 withholding tax, P2,400 SSS contributions,
P2,000 PhilHealth contirbutions and P1,500 union dues P 206,000
13 month pay
th 18,000
Rice subsidy (2,000 x 12) 24,000
Uniform and clothing allowance 7,000
Monetized unused vacation leave credits (12 days) 6,000
Actual medical allowance 15,000
Christmas gift 10,000
Laundry allowance (400 x 12) 4,800
Separation pay from a previous employer( terminated due to HIV) 150,000
Interest from savings deposit, BPI-Makati, Philippines 50,000
Interest income from an 8-year deposit which was preterminated
(remaining maturity is 4 years) 90,000
Interest owned from San Miguel Corporation, domestic corp. 20%
Dividend declared by San Miguel Corporation 2,000,000
Sale of real property used in trade and business
Selling price 1,000,000
Cost 600,000
Zonal Value 1,100,000
Sale of real property held as capital asset
Selling price 1,200,000
Cost 900,000
Fair value 1,100,000
SSS premium benefits 40,000
PCSO Winnings 200,000
Tax informers reward, gross of any tax 500,000

Required: (30pts)
1. Compute the total amount of exclusions or exempted income (3pts)
2. Compute the total final tax from certain income (5pts)
3. Compute the total capital gains tax (5pts)
4. Compute the total additional exemption of the taxpayer (3pts)
5. Compute the total tax on interest income which was pre terminated (3pts)
6. Compute the taxable net income subject to progressive tax rates (3pts)
7. Compute the tax due on income under regular income taxation (5pts)
8. Compute the total tax expense from final tax, CGT and RIT (3pts)