commission on policies issued under his account. In 2019, gross premiums under hisaccount totaled P4.2 million. He is likewise entitled to representation allowance ofNAME:SCORE:SECTION:PROFESSOR:Multiple Choice-Problems2019, Mr. Pacino was employed as account officer in a non-life insurance company.a received P8,000 basic monthly salary. In addition, he gets 5% of gross premium asP1,000 a month.How much is to be included as gross income in 2019?a. P96,000b. P306,000c. P318,000d. exemptMr. Buscemi, the Treasurer of Apollo Corp., receives P25,000 basic salary a month. Forbeing one of the five members of the board of the same corporation, he, in addition,receives P15,000 a month. In December 2019, he received his 13th month pay ofP40,000 and productivity incentive of P150,000.2. Mr. Buscemi's gross income in 2019 isa. P480,000b. P520,000c. P670,000d. P630,000Julia R., an employee, has the following details relative to her employment in 2019:She consulted the company physician due to headache. Had she consulted anotherphysician, she would have been charged P300 as consultation fee.She received cash from a customer for her efficient service, P5,000. She failed toaccount for it to her employer.She claimed for the monetized value of her unused leave credits for 8 days. Her dailybasic salary is P300.3. How much is to be considered as compensation income?а. P5,000b. P7,400c. P7,700d. P5,600Richard G., received the following benefits from his employer in Dècember 2019.Thirteenth month payP50,000Christmas bonus10,000Productivity incentives pay16,0004. The taxable compensation income isa. P76,000b. P16,000c. P46,000d. P2,000Mr. Arnold S. was iniured in a vehicular accident in 2018. He incurred and paid medicalexpenses of P40,000 and legal fees of P20,000 during the year. In 2019, he received140,000 as settlement from the insurance company which insured the car owned byie other party involved in the accident.Chapter 7: Gross Income l711 10. The gross income of Ms. J, isVeteran Poultry employs the cash basis of accounting for its poultry business. For thefollowing data on the retirement pay she received in 2019:In the 2019 records of taxpayer Jennifer L., the following items relate to the differentMs. Ashley J. is an employee in a firm which gives fringe benefits to its rank-and-fileand employees, but not registered with the Bureau of Internal Revenue, Ms. J. had theemployees. In a retirement benefit plan, contributory on the part of both the employerInterest income of the fund on the above contributionsin 2019 isd. P100,000b. PS0,000c. P140,000a. zeroVeteran Poultry employs the cash basis of accounting for its poultry business, Fortaxable year 2019, it has the following data:Contributions by the employerP500,000250,000300,000100,000Contributions by Ms. J.Comcest income of the fund on the above contributionsP120,00030,00010,000P160,000Cash sales on livestock raisedTotal amount receivedSales of livestock purchasedCost of salesOther income10 The gross income of Ms. J, isa. zerob. P160,000C. P120,000he 2019 records of taxpayer Jennifer L, the following items relate to the different6.The gross income in 2019 isd. P130,000d. P850,000policies she obtained:Received by the taxpayer under policies:Proceeds of life insurance (as beneficiary of mother)Proceeds of life insurance (as beneficiary of father)Insurance purchased from the father at cost to taxpayer ofAdditional premiums paid by the taxpayer to continue the policyAmount received upon the death of the fatherProceeds of endowment policy, upon maturity, with premiumpayments made of P1,600,000Proceeds of comprehensive car insuranceCrop insurance, from crop destroyed by typhoona. P550,000b. P450,000c. P750,000Cameron D., a sole proprietor bas the following data in 2019, its first year .merchandising:P 800,000Gross salesCost of goods soldOther incomeSelling expensesDepreciation expenseP300,000150,00050,00020,0004,0001,200,000400,000100,0001,000,0007. How much is Cameron's gross income?2,000,000а. РЗ00,000b. P150,000c. P200,000d. P224,000200,00011 The income from the amounts received is:100,000In addition to the compensation being received by Ms. Lynn R. as employee, she leasesout her 3-door apartment for P10.000 a month each unit. Her compensation income for2019 consists of P13,000 basic salary a month, 13th month pay based on basic salary plusP25,000 bonus. As rovalties, she received P113.000 for the book she wrote; and P80,000for her property that is planted with pineapples.a. P4,600,000b. P1,000,000c. P1,200,000d. P100,000The following are recoveries in 2019 of bad debt previously written off by Patrick S., thetaxpayer:No. 1: P40,000 from accounts written off in a year which had a net income of P400,000 before8. The amount to be included as gross income in 2019 iswrite-off (write-off for the year was P40,000);No. 2: P10,000 from accounts written off in a year which had a net loss before write off ofP72,000 (write-off for the year was P10,000);No. 3: P20,000 from accounts written off in a year which had a net income of P16,000 beforea. P717,000b. P747,000c. P596,000d. P524,000Mr. Ricky M. was insured under an endowment policy with a value of P1,000,000. Totalpremiums paid by him during the term of premium payments on the policy wasP980,000, from which there was a return of premiums of P80,000. At the maturity of thepolicy in 2019, Mr. M. received P1,000,000.write-off and a write-off for P24,000.12. The income from the bad debt recovery is9. The income of Mr. M. under the policy isa. P70,000b. Р40,000c. P52,000d. P60,000a. zerob. P1,000,000c. P20,000d. P100,000Chanter 7: Grocc Incoma

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