Ms. Juana Dela Cruz, Vice President for Corporate Management, regularly receives representation and travelling allowance of P25,000 a month in addition to her basic salary. Is the P25,000 taxable?I. No, because the representation and travelling allowance is not a compensation.II. Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable.Select one:a.Both answers are wrongb.No, because the representation and travelling allowance is not a compensation is correct: Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable is wrongc.Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable is correct: No, because the representation and travelling allowance is not a compensation is wrongd.Both answers are correct

Statement I. Compensation income includes salary, honoraria, allowances,separation pay, and retirement pay.Statement II. Representation and travelling allowances that are fixed in amount arenot taxable.Select one:a.Only Statement mpensation income includes salary, honoraria, allowances,separation pay, and retirement pay is correctb.Both statements are correctc.Neither statement is correctd.Only Statement Representation and travelling allowances that are fixed in amount arenot taxable is correct

Mr. Juan Dela Cruz recently received P200,000 as a separation pay from his employer, ABC Corporation, since the company was undergoing reorganization due to merger with XYZ Corporation. Is the amount received by Mr. Dela Cruz taxable? Answer I No, because the separation was involuntary on his part. Answer II Yes, because by nature, separation pay is generally taxable.Select one:a.Both of the given choices are correct.b.No, because the separation was involuntary on his part is correct: Yes, because by nature, separation pay is generally taxable is wrongc.No, because the separation was involuntary on his part is wrong: Yes, because by nature, separation pay is generally taxable is correctd.No correct answer

Mr. Chris Cruz, 60 years old, manager at DEF Company, retired during the taxable year. Because of his exemplary performance for the last 25 years, the company, which did not have an approved retirement plan, gave him P500,000 as retirement pay. In addition, he also received P300,000 from SSS as a retirement benefit. Is the total retirement pay of Mr. Crz from his employer and the SSS taxable?Answer I No, the total amount of P800,000 is not a taxable retirement pay.Answer II Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable.Select one:a.Both answers are correctb.Both answers are wrongc.No, the total amount of P800,000 is not a taxable retirement pay is correct: Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is wrongd.No, the total amount of P800,000 is not a taxable retirement pay is wrong:Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is correct

Mr. A received the following from his employer during the current taxable year: Monthly basic salary, P45,000 Monthly representation and travelling allowance not subject to liquidation, P10,0005% commission on net sales. Sales during the year were P6,300,000; sales return, P250,000 13th month pay, Christmas bonus and productivity pay amounting to 120% of his basic salary The gross taxable compensation income of Mr. A for the current taxable year is:Select one:a.P1,016,500b.P986,500c.P962,500d.P841,500

A taxpayer received a basic salaray of P1,152,000 per year. At the end of taxable year, he also received 13th month pay which is equivalent to his one month basic salary. Is the 13th month pay of the taxpayer taxable?Answer I No, because 13th month pay is tax exempt and does not form part of the compensation income.Answer II Yes, because the 13th month pay he received already esceeded the P82,000 threshold.Select one:a.Both answers are correctb.No, because 13th month pay is tax exempt and does not form part of the compensation income is correct: Yes, because the 13th month pay he received already esceeded the P82,000 threshold is wrongc.Both answers are wrongd.No, because 13th month pay is tax exempt and does not form part of the compensation income is wrong:Yes, because the 13th month pay he received already esceeded the P82,000 threshold is correct