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

Separation pay brought about by the following circumstances is non-taxable, except:Select one:a.Reorganization of the company due to mergerb.Voluntary resignationc.Bankruptcy of the companyd.SicknessClear my choice

During the taxable year, Mr. Juan Dela Cruz separated legally from his wife, Andrea. The legally separated spouses have four qualified dependent children. Both spouses were earning with the following gross taxable income: Mr. Juan Dela Cruz, P380,000; Ms. Andrea, P250,000. For custody, the court granted Mr. Dela Cruz the two children and Ms. Andrea the remaining two children. Meanwhile, Mr. Juan Dela Cruz is supporting his niece who is 21 years old, unmarried, and not gainfully employed. Both spouses have monthly premium payment of P150 for health and insurance.The additional personal exemption of Mr. Juan Dela Cruz is:Select one:a.P50,000b.P25,000c.Zerod.P75,000

The following situation may warrant that separation pay shall not be included in the gross taxable income, exceptSelect one:a.Employmentb.Reorganization of the companyc.Bankruptcy of the companyd.Disability

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 Separation pay may be taxable or tax-exemptStatement II Separation pay is not taxable if the separation is involuntary on the part of employee.Select one:a.Only Statement II is correctb.Only Statement I is correctc.Both statements are correctd.Neither statement is correctClear my choice