Académique Documents
Professionnel Documents
Culture Documents
SUBSIDY
TARIFF
TAXATION
TRIBUTE
CRIMINAL IN NATURE
PENAL IN NATURE
POLITICAL IN NATURE
GENERALLY PROSPECTIVE IN APPLICATION
PROVINCES
CITIES
BARANGAYS
BARRIOS
9.
THE LEGISLATIVE BODY CAN IMPOSE A TAX AT ANY
AMOUNT UNDERSCORES THE LEGAL DICTUM THAT TAXATION IS
(RPCPA)
A)
B)
C)
D)
10.
ALL OF THE FOLLOWING, EXCEPT ONE, ARE BASIC
PRINCIPLES OF THE SOUND TAX SYSTEM
A) FISCAL ADEQUACY
B) THEORETICAL JUSTICE
C) ADMINISTRATIVE FEASIBILITY
D) INHERENT IN SOVEREIGNTY
11. UNDER THIS BASIC PRINCIPLE OF SOUND TAX SYSTEM, THE
GOVERNMENT SHOULD NOT INCUR A DEFICIT-(RPCPA)
A)
B)
C)
D)
THEORETICAL JUSTICE
ADMINISTRATIVE FEASIBILITY
FISCAL ADEQUACY
NONE OF THE ABOVE
MEET
13.
WHICH OF THE FOLLOWING IS NOT ONE OF THE CANONS OF A
SOUND TAX SYSTEM?
A)
B)
C)
D)
14.
QUANTIFIABILITY
EQUALITY
CERTAINTY
CONVENIENCE
A)
B)
C)
D)
INHERENT LIMITATION
THEORETICAL JUSTICE
LEGISLATIVE IN CHARACTER
ADMINISTRATIVE FEASIBILITY
FALSE, FALSE
FALSE, TRUE
TRUE, TRUE
TRUE, FALSE
THEORETICAL JUSTICE
LEGISLATIVE IN CHARACTER
INHERENT LIMITATIONS
CONSTITUTIONAL LIMITATIONS
INTERNATIONAL COMITY
DOUBLE TAXATION
NON-DELEGATION OF THE LEGISLATIVE POWER TO TAX
TERRITORIALITY
UNIFORMITY OF TAXATION
EQUALITY OF TAXATION
DUE PROCESS OF LAW
NON-DELEGATION OF LEGISLATIVE POWER
II.
III.
IV.
I ONLY
I AND II
III AND IV
I, III AND IV
STATEMENT 1 ONLY
STATEMENTS 1 AND 2
STATEMENT 2 ONLY
ALL OF THEM
THEORETICAL JUSTICE
LEGISLATIVE IN CHARACTER
INHERENT LIMITATIONS
CONSTUTIONAL LIMITATIONS
NATIONAL DEFENSE
PUBLIC EDUCATION
IMPROVEMENT OF SUGAR INDUSTRY
NONE OF THE ABOVE
INTERNATIONAL LAW
INTERNATIONAL COMITY
RECIPROCITY
INTERNATIONAL INHIBITION
AND
CONTROLLED
A)YES, NO
B)YES, YES
C)NO, YES
D)NO, NO
40 DIPLOMATIC OFFICIALS SUCH AS HEADS OF STATES AND
AMBASSADORS ARE EXEMPT FROM TAXES AND DUTIES BECAUSE OF
A)
B)
C)
D)
INTERNATIONAL COMITY
RECIPROCITY PROVISIONS
PRINCIPLE OF TERRITORIALITY
EXEMPTION IN THE TAX CODE
41. DEALS WITH THE PROVISION OF THE LAW WHICH DETERMINES THE
PERSON OR PROPERTY TO BE TAXED, THE SUM OR SUMS TO BE RAISED,
THE RATE THEREOF, AND THE TIME AND MANNER OF LEVYINGM
RECEIVING AND COLLECTING OF TAXES
A)
B)
C)
D)
COLLECTION
PAYMENT
ENFORCED CONTRIBUTION
LEVY
COLLECTION
PROPORTIONATE IN CHARACTER
ENFORCED CONTRIBUTION
LEVY
LICENSE FEE
TAX
TOLL
TARIFF
UNLIMITED AS TO AMOUNT
PAYABLE IN MONEY
PROPORTIONATE IN CHARACTER
REGULAR IN PAYMENT
PROPERTY TAX
EXCISE TAX
POLL TAX
INCOME TAX
TRANSFER TAX
SALES TAX
REAL PROPERTY TAX
INCOME TAX
50. SHARON, A CPA HAS JUST OBTAINED HER CPA LICENSE. BEFORE SHE
CAN LAWFULLY PURSUE HER OCCUPATION, SHE SHOULD PAY(RPCPA)
A)
B)
C)
D)
PRIVILEGE TAX(PTR)
PERCENTAGE TAX
CPAS INCOME TAX
VALUE-ADDED TAX
DIRECT TAX
INDIRECT TAX
EXCISE TAX
POLL TAX
IMMIGRATION TAX
TRANSFER TAX
INCOME TAX
CONTRACTORS TAX
DIRECT TAX
INDIRECT TAX
PROPERTY TAX
NONE OF THE ABOVE
DIRECT TAX
INDIRECT TAX
PROPERTY TAX
NONE OF THE ABOVE
57. FELIX IS A MINING OPERATOR. HIS MINERAL LANDS ARE NOT COVERED
BY ANY LEASE CONTRACT. THE TAX FELIX HAS TO PAY BASED ON THE
ACTUAL VALUE OF THE GROSS OUTPUT OR MINERAL PRODUCTS
EXTRACTED IS-(RPCPA)
A)
B)
C)
D)
MINING TAX
ROYALTIES
RENTAL
AD VALOREM TAX
REVENUE TAX
REGULATORY TAX
SPECIFIC TAX
AD VALOREM TAX
REVENUE TAX
REGULATORY TAX
SPECIFIC TAX
AD VALOREM TAX
C) PROPORTIONAL TAX
D) GENERAL TAX
61. TAXES IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE AND
IS EFFECTIVE ONLY WITHIN THE TERRITORIAL BOUNDARIES
THEREOF
A)
B)
C)
D)
NATIONAL TAX
LOCAL TAX
PROGRESSIVE TAX
REGRESSIVE TAX
DIGRESSIVE
UNIFORM
REGRESSIVE
PROGRESSIVE
63.THE POWER OF THE STATE OR THOSE TO WHOM THE POWER HAS BEEN
DELEGATED TO TAKE PRIVATE PROPERTY FOR PUBLIC USE UPON PAYING
TO THE OWNER A JUST COMPENSATION
A)
B)
C)
D)
TAX
LICENSE FEE
TOLL
EMINENT DOMAIN
TAXATION
EMINENT DOMAIN
POLICE POWER
POLICE POWER AND POWER OF TAXATION
70. STATEMENT 1: THE CONGRESS CAN ENACT TAX LAWS EVEN IN THE
ABSENCE OF A CONSTITUTIONAL PROVISION GRANTING SAID BODY THE
POWER TO TAX.
STATEMENT 2: A TAX MAY BE VALIDLY IMPOSED IN THE EXERCISE OF
POLICE POWER AND NOT THE POWER TO TAX.
A)
B)
C)
D)
FALSE, FALSE
FALSE, TRUE
TRUE, TRUE
TRUE, FALSE
71. WHICH OF THE FOLLOWING MAY NOT RAISE MONEY FOR THE
GOVERNMENT-(RPCPA)
A)
B)
C)
D)
POWER OF TAXATION
POLICE POWER
POWER OF EMINENT DOMAIN
PRIVATIZATION OF GOVERNMENTS CAPITAL ASSETS
72. IN THIS POWER OF THE STATE, THE PERSON WHO IS PARTING WITH HIS
MONEY OR PROPERTY IS PRESUMED TO RECEIVE A BENEFIT-(RPCPA)
A)
B)
C)
D)
TAXATION
POLICE POWER
EMINENT DOMAIN
FORFEITURE POWER
TAXATION
POLICE POWER
EMINENT DOMAIN
NONE
TAX
LICENSE FEE
TOLL
CUSTOMS DUTY
DEMAND OF PROPRIETORSHIP
COMPENSATION FOR THE USE OF ANOTHERS PROPERTY
MAY BE IMPOSED BY PRIVATE INDIVIDUALS
LEVIED FOR THE SUPPORT OF THE GOVERNMENT
LICENSE FEE
TAX
TOLL
FRANCHISE
TAX
CUSTOMS DUTY
REVENUE
ORDINARY INCOME
LICENSE FEE
INCOME
CUSTOMS DUTY
REVENUE
D) SAME PURPOSE
87. THE FOLLOWING CONSTITUTE DOUBLE TAXATION EXCEPT ONE(RPCPA)
A)
B)
C)
D)
CORRECT, WRONG
WRONG, CORRECT
WRONG, WRONG
CORRECT, CORRECT
SHIFTING
CAPITALIZATION
TRANSFORMATION
TAX EXEMPTION
SHIFTING
CAPITALIZATION
TRANSFORMATION
TAX EXEMPTION
SHIFTING
CAPITALIZATION
TRANSFORMATION
TAX EXEMPTION
A)
B)
C)
D)
TAX EXEMPTION
TAX EVASION
TAX AVOIDANCE
TAX AMNESTY
STATEMENT 1 ONLY
STATEMENTS 1 AND 2
STATEMENT 2 ONLY
NEITHER OF THEM
TAX EXEMPTION
TAX EVASION
TAX AVOIDANCE
TRANSFORMATION
TAX EXEMPTION
TAX EVASION
TAX AVOIDANCE
TRANSFORMATION
99. WHICH OF
AVOIDANCE?
THE
FOLLOWING
STATEMENTS
CONSTITUTE
TAX
I ONLY
I AND III ONLY
I AND IV
I, III AND IV
103. THE FOLLOWING, EXCEPT ONE, ARE EXCEPTIONS TO THE RULE THAT
TAX EXEMPTIONS MUST BE STRICTLY CONSTRUED AGAINST THE
TAXPAYER
A) WHERE THE STATUTE GRANTING THE EXEMPTION PROVIDES FOR
LIBERAL INTERPRETATION THEREOF
B) IF THE TAXPAYER DOES NOT FALL WITHIN THE PURVIEW OF THE
EXCEPTION BY CLEAR LEGISLATIVE INTENT
C) IN CASE OF SPECIAL TAXES RELATING TO SPECIAL CASES AND
AFFECTING ONLY SPECIAL CLASSES OF PERSONS
D) IF EXMPTIONS REFER TO PUBLIC PROPERTY
THE
105. SOME FRANCHISE HOLDERS WHO ARE PAYING THE FRANCHISE TAX
ARE BEING REQUIRED BY AN AMENDATORY LAW TO PAY THE VALUEADDED TAX, WHILE OTHERS REMAIN SUBJECT TO FRANCHISE TAX. WHICH
OF THE FOLLOWING CONSTITUTIONAL PROVISION MAKES THE LAW
UNCONSTITUTIONAL?-(RPCPA)
A) NO LAW SHALL BE PASSED IMPAIRING THE OBLIGATION OF
CONTRACT
B) THE RULE OF TAXATION SHALL BE UNIFORM
C) NO PERSON SHALL BE DEPRIVED OF PROPERTY WITHOUT DUE
PROCESS OF LAW
D) NONE OF THE ABOVE
106. STATEMENT 1: THE POINT ON WHICH A TAX IS ORIGINALLY IMPOSED
IS IMPACT OF TAXATION
STATEMENT 2: AS A RULE, TAXES ARE SUBJECT TO SET-OFF OR
COMPENSATION
A)
B)
C)
D)
TRUE, TRUE
FALSE, TRUE
FALSE, FALSE
TRUE, FALSE
CORRECT, WRONG
CORRECT, CORRECT
WRONG, CORRECT
WRONG, WRONG
109. ALL OF THE FOLLOWING, EXCEPT ONE, ARE SOURCES OF TAX LAWSA)
B)
C)
D)
STATUTES
COURT DECISIONS
CONSTITUTION
BIR RULINGS
SET-OFF DOCTRINE
DOCTRINE OF RECIPROCITY
TAX SPARING DOCTRINE
EQUITAB LE RECOUPMENT
CORRECT, WRONG
CORRECT, CORRECT
WRONG, CORRECT
WRONG, WRONG
113. THE PLACE OR AUTHORITY THAT HAS THE RIGHT TO IMPOSE AND
COLLECT TAXESA)
B)
C)
D)
TERRITORIALITY
INTERNATIONAL COMITY
SITUS OF TAXATION
TRANSFORMATION
INCOME TAX
COMMUNITY TAX
ESTATE TAX
BUSINESS TAX
B. TRUE OR FALSE
1. NO PERSON SHALL BE IMPRISONED FOR DEBT OR NON-PAYMENT OF
POLL TAX
2. CONGRESS MAY AUTHORIZE THE PRESIDENT TO FIX WITHIN
SPECIFIED LIMITS TARIFF RATES, IMPORT AND EXPORT DUTIES,
TONNAGE AND WHARFAGE DUES, AND OTHER DUTIES OR IMPOSTS
WITHIN THE FRAMEWORK OF THE NATIONAL DEVELOPMENT
PROGRAM OF THE GOVERNMENT.
3. A LAW GRANTING TAX EXEMPTION SHOULD BE CONCURRED IN BY A
MAJORITY OF ALL MEMBERS OF THE CONGRESS PRESENT.
4. THE PRESIDENT CAN VETO ANY PARTICULAR ITEM IN A REVENUE OR
TARIFF BILL, BUT THE VETO SHALL NOT AFFECT THE ITEMS OR ITEMS
TO WHICH HE DOES NOT OBJECT
5. THE POWER TO TAX CAN BE DELEGATED TO LOCAL GOVERNMENT
UNITS, SUBJECT TO LIMITATIONS THAT MAY BE SET BY LAW.
CAN
NOT
TAX
ITS
AGENCIES
AND
P28,000
P26,000
P24,000
P20,000
ADDITIONAL EXEMPTION
SPECIAL ADDITIONAL PERSONAL EXEMPTION
OPTIONAL STANDARD DEDUCTION
PERSONAL EXEMPTION
10.A MAN HAS THREE WIVES UNDER HIS TRIBAL CUSTOMS AND PRACTICE.
HE IS ENTITLED TO PERSONAL EXEMPTION APPERTAINING TO-(RPCPA)
A) A SINGLE INDIVIDUAL
B) A MARRIED INDIVIDUAL
C) A MARRIED INDIVIDUAL PLUS ADDITIONAL EXEMPTION FOR
DEPENDENTS PERTAINING TO EACH OF THE 2 EXTRA WIVES
D) A HEAD OF THE FAMILY PLUS ADDITIONAL EXEMPTION FOR
DEPENDENTS PERTAINING TO EACH OF HIS THREE WIVES
11. AS A RULE, WHO OF THE SPOUSES IS THE PROPER CLAIMANT OF THE
ADDITIONAL EXEMPTION WITH RESPECT TO ANY OF THE DEPENDENT
CHILDREN?
A) THE HUSBAND IF HIS INCOME IS HIGHER THAN THE INCOME OF THE
WIFE
B) THE SPOUSE WHO HAS A HIGHER INCOME
C) THE HUSBAND
D) THE WIFE
12. THE WIFE CAN CLAIM ADDITIONAL EXEMPTION IF-(RPCPA)
A) THE HUSBANDS INCOME IS LOWER THAN HER INCOME
B) THE HUSBAND IS A NONRESIDENT CITIZEN WITH INCOME FROM
WITHIN AND WITHOUT THE PHILIPPINES
C) THE HUSBAND IS A PURE BUSINESS INCOME EARNER
D) THE HUSBAND HAS NO INCOME OF HIS OWN
13. THE HUSBAND CAN WAIVE HIS RIGHT TO CLAIM THE ADDITIONAL
EXEMPTION IN FAVOR OF HIS WIFE IFA) HE IS A NONRESIDENT CITIZEN WHOSE INCOME IS PURELY
WITHOUT THE PHILIPPINES
B) HE HAS NO INCOME OF HIS OWN
C) HE IS A COMPENSATION INCOME EARNER IN THE PHILIPPINES
D) HIS INCOME IS PURELY SUBJECT TO FINAL WITHHOLDING TAX
14. WHO AMONG THE FOLLOWING QUALIFIES AS A DEPENDENT FOR
PURPOSES OF ADDITIONAL EXEMPTION?
A)
B)
C)
D)
SISTER-IN-LAW
STEPMOTHER
GRANDFATHER
ILLEGITIMATE DAUGHTER
15. NENA, AGED 70 YEARS OLD, WHO LIVES WITH HER UNMARRIED SON
MARIO, RECEIVED P60,000 WHICH WAS USED FOR HER SUPPORT DURING
THE YEAR. THE SOURCES OF HER SUPPORT WERE AS FOLLOWS:
SOCIAL SECURITY BENEFITS
MARIO
CAROLINE, UNRELATED FRIEND
DOUGLAS, SON OF NENA
LALAINE, NENAS SISTER
TOTAL
P24,000
20,000
4,000
5,000
7,000
60,000
MARIO
DOUGLAS
LALAINE
NONE
ILLEGITIMATE CHILD
LEGALLY ADOPTED CHILD
LEGITIMATE CHILD
CHILD BY NATURAL ADOPTION
ANDREA ONLY
ANDREA AND BARBARA
ANDREA, BARBARA AND CARIDAD
ANDREA, BARBARA, CARIDAD AND DONATA
P20,000
25,000
50,000
75,000
P8,000
32,000
25,000
50,000
P20,000
75,000
33,000
41,000
P200,000
96,000
64,000
NONE
AGES
24
22
19
10
8
6
3
STATUS
JOBLESS
MENTALLY RETARDED
STUDYING IN MANILA
STUDYING IN THEIR HOMETOWN
STUDYING IN THEIR HOMETOWN
STUDYING IN THEIR HOMETOWN
TAKEN BY THE GRANDPARENTS
AFTER THE DEATH OF THE FATHER
A)
B)
C)
D)
P150,000
57,000
64,000
73,000
STATUS
22 Y/O, EMPLOYED ON JULY 12, 2009
21 Y/O ON JANUARY 2, 2009
18 Y/O, MARRIED ON JANUARY 31, 2009
17 Y/O, GAINFULLY EMPLOYED ON OCTOBER 1, 2009
15 Y/O, AFFLICTED WITH SORE EYES ON MAY 6, 2009
13 DIED OF AN ACCIDENT IN 2009
BROTHER, 28 Y/O PARALYTIC
P75,000
125,000
100,000
32,000
24. FOR THE YEAR 2010, PIDOL CAN CLAIM ADDITIONAL EXEMPTIONS OFA)
B)
C)
D)
P8,000
16,000
25,000
100,000
A)
B)
C)
D)
P32,000
63,000
150,000
100,000
P120,000
225,000
95,000
87,000
TRUE, FALSE
TRUE, TRUE
FALSE, TRUE
FALSE, FALSE
P97,600
97,000
122,000
122,600
RESIDENT ONLY
NON-RESIDENT CITIZEN
RESIDENT CITIZEN
NON-RESIDENT ALIEN
YES, NO
YES, YES
NO, YES
NO, NO
P300,000
250,000
200,000
125,000
3,000
$500
P6,000
10,000
20,000
50,000
25,000
P261,000
334,000
291,000
306,000
P243,000
56,000
74,000
NONE
37. THE INCOME TAX DUE ON SHARON ASSUMING SHE IS A NONRESIDENT ALIEN NETB, SINGLE, ISA)
B)
C)
D)
P83,500
63,500
18,500
334,000
ELVIS
P125,000
76,000
MADONNA
P60,000
70,000
6
10,000
A)
B)
C)
D)
P3,000
10,200
(P5,500)
8,700
P14,000
7,000
NONE
NO ANSWER
41. THE OPTIONAL STANDARD DEDUCTION ON INDIVIDUAL ISA) 40% OF TAXABLE INCOME
B) 40%
OF
BUSINESS
AND/OR
PROFESSIONAL
COMPENSATION INCOME
C) 40% OF BUSINESS AND/OR PROFESSIONAL INCOME
D) 10%
OF
BUSINESS
AND/OR
PROFESSIONAL
COMPENSATION INCOME
INCLUDING
EXCLUDING
RESIDENT ALIEN
NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS
NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS
NON-RESIDENT FOREIGN CORPORATION
P55,000
5,000
83,000
57,000
125,000
56,500
6,000
P28,125
17,125
44,500
41,360
P4,500
50,225
51,050
51,650
P31.32
18,277.72
363.16
8,687.85
B) 1,431.45
C) (P983.19)
D) NONE
47. MRS. EVAN OWNS A PARCEL OF LAND WORTH P500,000 WHICH SHE
INHERITED FROM HER FATHER IN 2006 WHEN IT WAS WORTH P300,000. HER
FATHER PURCHASED IT IN 1986 FOR P100,000. IF MRS. EVAN TRANSFERS
THIS PARCEL OF LAND FOR HER WHOLLY OWNED CORPORATION IN
EXCHANGE FOR SHARES OF STOCKS OF SAID CORPORATION WORTH
P450,000. MRS. EVANS TAXABLE GAIN IS-(RPCPA)
A)
B)
C)
D)
ZERO
P50,000
150,000
350,000
48. MR. JOHNNY DELA CRUZ TRANSFERRED HIS COMMERCIAL LAND WITH
A COST OF P500,000 BUT WITH A FAIR MARKET VALUE OF P750,000 TO JDC
CORPORATION IN EXCHANGE OF THE STOCKS OF THE CORPORATION WITH
PAR VALUE OF P1,000,000. AS A RESULT OF THE TRANSFER, HE BECAME
THE MAJOR STOCKHOLDER OF THE CORPORATION.-(RPCPA)
AS A RESULT OF THE TRANSFER:
A) THE RECOGNIZED GAIN IS THE DIFFERENCE BETWEEN THE FAIR
MARKET VALUE OF THE SHARES OF STOCKS AND THE COST OF THE
LAND
B) THE RECOGNIZED GAIN IS THE DIFFERENCE BETWEEN THE PAR
VALUE OF THE STOCKS AND THE FAIR MARKET VALUE OF THE
LAND
C) NO RECOGNIZED GAIN BECAUSE THE LAND WAS IN EXCHANGE OF
PURELY STOCKS AND MR. JOHNNY DELA CRUZ BECAME THE
MAJORITY STOCKHOLDER
D) NO RECOGNIZED GAIN BECAUSE THE LAND WAS IN EXCHANGE OF
STOCKS OF THE CORPORATION.
49. MR. SANTOS PURCHASED A LIFE ANNUITY FOR P100,000 WHICH WILL
PAY HIM P10,000 A YEAR. THE LIFE EXPECTANCY OF MR. SANTOS IS 12
YEARS. WHICH OF THE FOLLOWING WILL MR. SANTOS BE ABLE TO
EXCLUDE FROM HIS GROSS INCOME?-(RPCPA)
A)
B)
C)
D)
P100,000
10,000
20,000
120,000
TO A GIFT
TO A CAPITAL CONTRIBUTION
TO A DONATION INTER VIVOS
TO A PAYMENT OF INCOME
P50,000
270,400
270,000
240,000
P5,000
10,000
15,000
NONE
P50,000, 50,000
12,500, 37,500
37,500, 12,500
NONE, 50,000
55. USING THE SAME DATA IN NUMBER 54 ABOVE, EXCEPT THAT 50% OF
THE FACE VALUE OF THE NOTE IS PAYABLE IN 2009 WHILE THE
REMAINING 50% IS PAYABLE IN 2010?
HOW MUCH INCOME IS TAXABLE TO ALMONTE IN 2008, 2009 AND IN
2010, RESPECTIVELY?
A)
B)
C)
D)
56.
2008
NET INCOME BEFORE
WRITE-OFF OF
BAD DEBT
LESS: BAD DEBT
WRITTEN OFF
NET INCOME AFTER
BAD DEBT
2009
AMOUNT RECOVERED
CASE1
CASE2
CASE3
CASE4
70,000
70,000
70,000
70,000
40,000
80,000
55,000
85,000
40,000
(10,000)
15,000
(15,000)
40,000
30,000
40,000
85,000
I ONLY
I AND II
II AND III
III ONLY
P12,000
13,500
24,000
25,500
B) 1,500
C) 1,013,500
D) 1,000,000
60. HOW MUCH INCOME IS TO BE REPORTED BY BRYAN IN 2009 UNDER THE
SPREAD-OUT METHOD?
A)
B)
C)
D)
P13,500
1,500
1,013,500
88,500
P138,500
63,500
125,000
13,500
62. ASSUMING THAT DUE TO THE FAULT OF THE LESSEE, THE LEASE
CONTRACT WAS TERMINATED ON JANUARY 1, 2011, HOW MUCH
INCOME IS TO BE REPORTED BY THE LESSOR IN 2011?
A)
B)
C)
D)
P763,500
750,000
88,500
1,013,500
P60,000
123,000
120,000
63,000
P84,429
105,857
81,429
21,429
P165,857
162,857
114, 429
84,429
68. THE INCOME TO BE REPORTED BY ARTURO IN 2009 UNDER SPREADOUT METHOD ISA) P105,857
B) 102,857
C) 114,429
D) 84,429
69. SUPPOSE THE LEASE CONTRACT WAS TERMINATED ON APRIL 1, 2012
DUE TO THE FAULT OF THE LESSEE, THE INCOME TO BE REPORTED
BY ARTURO UNDER SPREAD-OUT METHOD ON 2012 ISA)
B)
C)
D)
P1,443,000
1,485,857
1,440,000
1,482,857
P75,000
740,000
140,000
190,000
P215,000
220,000
225,000
190,000
A)
B)
C)
D)
ZERO
P500,000
10,000
50,000
P500,000
200,000
300,000
NONE
P500,000
100,000
400,000
NONE
P500,000
150,000
260,000
EXEMPT
78. SUPPOSE PAUL DIES ON THE 5TH YEAR AND HIS BENEFICIARY WAS
OFFERED TO RECEIVE P150,000 IN LUMP SUM OR TO RECEIVE IT AT
P20,000 A MONTH FOR TEN(10) MONTHS AND THE BENEFICIARY
CHOSE THE 2ND OPTION, HE WILL REPORT AN INCOME OFA)
B)
C)
D)
P500,000
150,000
50,000
EXEMPT
79. SUPPOSE PAUL SURVIVED THE POLICY AND WAS ABLE TO RECEIVE
P500,000, HE WILL REPORT AN INCOME OFA)
B)
C)
D)
P500,000
260,000
150,000
NONE
81. MR. BASIL INSURED HIS LIFE WITH HIS ESTATE AS BENEFICIARY.IN
2008, AFTER MR. BASIL HAD PAID P65,000 IN PREMIUM, HE ASSIGNED
THE POLICY TO MR. JOSE LLAMADO FOR P60,000, AND MR. LLAMADO
CONTINUED PAYING THE PREMIUMS. MR. BASIL DIED AND MR.
LLAMADO COLLECTED THE TOTAL PROCEEDS OF P200,000. MR.
LLAMADO, AFTER THE ASSIGNMENT AND BEFORE MR. BASILS
DEATH, PAID TOTAL PREMIUMS OF P80,000. AS A RESULT OF THE
ABOBE TRANSACTION, MR. LLAMADO-(RPCPA)
A)
B)
C)
D)
82. BINATA
REYES
WON
THE
INTERNATIONAL
BILLIARD
CHAMPIONSHIP HELD IN MADRID, SPAIN. THE TOURNAMENT WAS
SANCTIONED BY A NATIONAL SPORTS ASSOCIATION WHICH IS
RECOGNIZED BY THE PHILIPPINE OLYMPIC COMMITTEE. HE WAS
AWARDED U.S.$60,000 BY THE SPONSOR OF THE TOURNAMENT. HE
WAS ALSO GIVEN P250,000 CASH BY SAN MIGUEL CORPORATION AS
PRIZE OR AWARD.
IN THE SAME YEAR, HE ENTERED INTO A CONTRACT WITH THE SAME
COMPANY TO ADVERTISE THEIR PRODUCT FOR P1,500,000.
IF THE EXCHANGE RATE OF EVERY U.S. $1 IS P45, BINATA REYES SHOULD
REPORT AN INCOME OF
A)
B)
C)
D)
P4,750,000
1,500,000
1,750,000
3,250,000
P60,000
15,000
60,000
ZERO
P20,000
60,000
155,000
ZERO
P40,000
70,000
50,000
100,000600,000-
P190,000
680,000
830,000
240,000
86. LYDIA WAS HIT BY A WAYWARD BUS WHILE ON HER WAY HOME.
SHE SURVIVED BUT HAD TO PAY P150,000 FOR HER
HOSPITALIZATION. SHE WAS UNABLE TO WORK FOR SIX(6) MONTHS
WHICH MEANT THAT SHE DID NOT RECEIVE HER USUAL SALARY OF
P10,000 A MONTH OR A TOTAL OF P60,000. SHE SUED THE BUS
COMPANY AND WAS ABLE TO OBTAIN A FINAL JUDGMENT
AWARDING HER P150,000 AS REIMBURSEMENT FOR HER
HOSPITALIZATION, P60,000 FOR THE SALARIES SHE FAILED TO
RECEIVE WHILE HOSPITALIZED, AND P250,000 AS MORAL DAMAGES
FOR HER PAIN AND SUFFERING. SHE WAS ABLE TO COLLECT IN
FULL FROM THE JUDGMENT.
HOW MUCH INCOME DID SHE REALIZE WHEN SHE COLLECTED FROM THE
JUDGMENT?
A)
B)
C)
D)
P460,000
250,000
60,000
400,000
P40,000 IN 2008
5,000 IN 2008
5,000 IN 2007
NONE
C) NO TO ALL QUESTIONS
D) NO TO 2ND AND 3RD QUESTIONS
91. DURING THE YEAR, BEN RECEIVED A COCONUT LAND FROM HIS
MOTHER BY WAY OF AN INTER-VIVOS DONATION. THE LAND HAD A
MARKET VALUE OF P700,000 AND EARNING AN AVERAGE ANNUAL
INCOME OF P50,000.
IN THE SAME YEAR, HIS MOTHER DIED. HE INHERITED A PASSENGER BUS
VALUED AT P400,000 AND A RESIDENTIAL HOUSE WORTH P2,000,000. THE
BUS EARNED A TOTAL INCOME OF P30,000 IN THE HANDS OF BEN.
AS A CONSEQUENCE OF HIS MOTHERS DEATH, HE RECEIVED P400,000
FROM AN INSURANCE COMPANY AS PROCEEDS OF AN INSURANCE POLICY
TAKEN BY HIS MOTHER WHO APPOINTED HIM AS THE BENEFICIARY. THE
TOTAL PREMIUMS PAID WAS P150,000.
THE INCOME SUBJECT TO TAX ISA)
B)
C)
D)
P3,500,000
3,350,000
330,000
80,000
P300,000
400,000
600,000
NONE
NO, YES, NO
NO, YES, YES
YES, NO, NO
YES, NO, YES
P3,090,000
3,000,000
3,270,000
270,000
P48,750
46,500
173,750
171,000
96. RAMONA MONTERO WAS RETIRED BY HER EMPLOYERCORPORATION IN 2008 AND PAID P2,000,000 AS A RETIREMENT
GRATUITY WITHOUT ANY DEDUCTION OF WITHHOLDING TAX. THE
CORPORATION BECAME BANKRUPT IN 2007. CAN THE BIR SUBJECT
THE P2,000,000 RETIREMENT GRATUITY TO INCOME TAX?-(RPCPA)
1ST ANSWER: NO, IF THE RETIREMENT GRATUITY WAS PAID BASED ON A
REASONABLE PENSION PLAN WHERE MONTERO WAS 60 YEARS OLD
RICE SUBSIDY
P1,000
1,000
1,500
1,500
UNIFORM ALLOWANCE
P3,000
4,000
3,500
4,000
P250,000
25,000
2,500
10,000
750,000
BASED ON THE ABOVE DATA, THE AMOUNT SUBJECT TO TAX OF RAFFY ISA)
B)
C)
D)
P250,000
257,500
252,500
1,037,500
P12,000
8,000
1,500
2,400
720
480
12,000
12,000
5,000
100.
THE PORTION OF COMPENSATION WHICH IS EXCLUDED FROM
THE GROSS COMPENSATION INCOME IF RICKY IS A RANK-AND-FILE
EMPLOYEE ISA)
B)
C)
D)
P5,100
34,100
29,000
NONE
101.
A)
B)
C)
D)
P144,000
150,000
109,900
138,900
102.
WHICH OF THE FOLLOWING COMPENSATION PAYMENTS TO A
MINIMUM WAGE EARNER IS SUBJECT TO INCOME TAX?
A)
B)
C)
D)
HOLIDAY PAY
OVERTIME PAY
NIGHT SHIFT DIFFERENTIAL PAY
NONE OF THE ABOVE
103.
ALCANZO
P99,048
8,254
435
1,256
-
BARRIENTOS
P101,172
8,431
1,459
1,686
CORPORAL
P84,368
10,546
2,543
1,000
-
9,945
11,576
14,089
ALCANZO ONLY
ALCANZO AND BARRIENTOS
ALCANZO, BARRIENTOS AND CORPORAL
BARRIENTOS AND CORPORAL
105.
WHICH OF THE FOLOWING BUSINESSES IS NOT TAXABLE AS A
CORPORATION?
A) ANDREA, BARBIE AND CRISSY CONTRIBUTED P500,000 EACH AND
OPENED UP A DEPARTMENT STORE IN THE DOWNTOWN. THEY
AGREED THAT WHATEVER NET PROFIT IS EARNED WILL BE
DISTRIBUTED EQUALLY TO THEM. THEY DID NOT BOTHER TO
REGISTER THE BUSINESS WITH THE SECURITIES AND EXCHANGE
COMMISSION
B) GIGI AND JAYJAY, TWO SENIOR STAFF AUDITORS OF A BIG
ACCOUNTING AND AUDITING FIRM, RESIGNED FROM THEIR JOB
AND ORGANIZED A NEW FIRM WHICH THEY NAMED AS GIGI, JAYJAY
AND COMPANY, CPAs.
107.
TAXABLE NET INCOME RECEIVED DURING EACH YEAR FROM
ALL SOURCES IS THE TAX BASE FOR INCOME PURPOSES OF THIS
CLASS OF TAXPAYERS-(RPCPA)
A) DOMESTIC CORPORATIONS
B) RESIDENT CORPORATIONS
C) RESIDENT FOREIGN CORPORATIONS ENGAGED IN TRADE OR
BUSINESS IN THE PHILIPPINES
D) RESIDENT FOREIGN CORPORATION NOT ENGAGED IN TRADE OR
BUSINESS IN THE PHILIPPINES
108.
A)
B)
C)
D)
DOMESTIC CORPORATION
RESIDENT FOREIGN CORPORATION
NON-PROFIT CEMETERY
NON-RESIDENT FOREIGN CORPORATION
109.
RGF CORPORATION, A DOMESTIC CORPORATION HAS THE
FOLLOWING RECORDS OF INCOME AND EXPENSES IN 2009:
GROSS INCOME, NET OF 1% WHT
EXPENSES
RENT INCOME, NET OF 5% WHT
P1,435,500
756,000
136,800
EXPENSES ON RENT
DIVIDEND FROM DOMESTIC CORPORATION
ROYALTY
INTEREST FROM BANK DEPOSIT WITH PNB, GROSS OF TAX
34,600
25,000
80,000
15,000
P241,020
219,320
803,400
259,490
110.
BASED ON THE DATA IN NUMBER 109 ABOVE, THE TOTAL
FINAL TAXES PAYABLE ON RGF CORPORATION ISA)
B)
C)
D)
P19,000
21,500
33,250
3,000
111.
LCY CORPORATION, A CORPORATION ENGAGED IN BUSINESS
IN THE PHILIPPINES AND ABROAD, HAS THE FOLLOWING DATA IN
2009:
GROSS INCOME, PHILIPPINES
EXPENSES, PHILIPPINES
GROSS INCOME, USA
EXPENSES, USA
INTEREST ON BANK DEPOSIT
P975,000
750,000
770,000
630,000
25,000
A)
B)
C)
D)
DOMESTIC
RESIDENT
FOREIGN
NON-RESIDENT
FOREIGN
P116,800
127,750
312,000
109.500
P72,000
78,750
515,850
67,500
P320,000
350,000
116,800
300,000
112.
FLT CORPORATION, A DOMESTIC CORPORATION HAS THE
FOLLOWING RECORD OF INCOME AND EXPENSES DURING THE
YEAR:
GROSS INCOME
EXPENSES
DIVIDEND FROM A RESIDENT FOREIGN CORPORATION
ROYALTIES, PHILIPPINES
ROYALTIES, USA
INTEREST ON TIME DEPOSIT WITH METROBANK
INTEREST ON MONEY MARKET PLACEMENT
P1,540,000
654,000
95,000
230,000
175,000
18,000
25,000
P886,000
1,156,000
641,000
616,000
113.
ISA)
B)
C)
D)
P51,475
72,600
103,120
148,100
GROSS PROFIT
EXPENSES
DIVIDENDDOMESTIC COMPANY
15,000
INCOME TAX WITHHELD 5,000
RENT INCOME, GROSS
OF 5% WHT
36,000
2ND QTR
P850,000
770,000
3RD QTR
P800,000
640,000
4TH QTR
P770,000
575,000
15,000
7,000
20,000
8,000
20,000
6,750
36,000
48,000
48,000
C) 28,300
D) 21,500
115.
THE INCOME TAX PAYABLE AT THE END OF THE SECOND
QUARTER ISA)
B)
C)
D)
P19,200
28,320
31,800
26,000
116.
THE INCOME TAX PAYABLE AT THE END OF THE THIRD
QUARTER ISA)
B)
C)
D)
P52,000
62,400
12,640
NONE
117.
THE INCOME TAX PAYABLE/REFUND AT THE END OF THE
YEAR ISA)
B)
C)
D)
P25,090
63,750
75,900
68,610
118.
ABC COMPANY, A DOMESTIC CORPORATION HAS THE
FOLLOWING DATA-(RPCPA)
INCOME TAX FOR 2008
LESS: TAX CREDITS
EXCESS TAX CREDITS
P110,000
125,000
15,000
2009
INCOME NET OF 1% WHT
DEDUCTIONS
1ST QTR
P495,000
460,000
119.
P15,000
1ST QTR
P495,000
460,000
2ND QTR
P792,000
700,000
HOW MUCH IS THE INCOME TAX STILL DUE AND PAYABLE IN THE SECOND
QUARTER?-(RPCPA)
A)
B)
C)
D)
P21,000
14,000
10,400
29,440
120.
IF THE GROSS INCOME FROM UNRELATED ACTIVITY EXCEEDS
50% OF THE TOTAL GROSS INCOME DERIVED BY ANY PRIVATE
EDUCATIONAL INSTITUTION, THE RATE SHALL BE 30% BASED ON
THE ENTIRE TAXABLE INCOME. THIS PRINCIPLE IS KNOWN AS
A)
B)
C)
D)
CONSTRUCTIVE RECEIPT
TAX BENEFIT RULE
END RESULT DOCTRINE
PREDOMINANCE TEST
121.
IN 2009, RGF UNIVERSITY, A PROPRIETARY EDUCATIONAL
INSTITUTION REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION
(SEC)
AND
COMMISSION
ON
HIGHER
EDUCATION(CHED), SPENT P15,000,000 FOR THE CONSTRUCTION OF A
NEW BUILDING. FOR INCOME TAX PURPOSES, THE AMOUNT MAYBE:
A) CLAIMED ENTIRELY AS DEDUCTION FROM ITS 2007 GROSS INCOME
B) CLASSIFIED AS AN ASSET OR EXPENSED OUTRIGHT, AT THE OPTION
OF THE GOVERNMENT
C) CLASSIFIED AS AN ASSET OR EXPENSED OUTRIGHT, AT THE OPTION
OF THE TAXPAYER
D) CLASSIFIED AS AN ASSET AND CLAIM AN ANNUAL DEPRECIATION
OVER THE LIFE OF THE BUILDING
P12,800,000
1,800,000
12,300
350,000
7,500,000
3,500,000
400,000
48,000
P343,000
147,000
576,000
160,000
123.
THE INCOME TAX PAYABLE IF THE COST OF BUILDING
CONSTRUCTION IS CAPITALIZED:
A)
B)
C)
D)
P346,000
147,000
1,203,200
345,667
124.
IN 2009, PROSPEROUS CORPORATION, A DOMESTIC
CORPORATION, HAD A NET INCOME OF P2,000,000. IT PAID A
CORPORATE TAX OF 30% LEAVING A DISTRIBUTABLE INCOME OF
P1,400,000. IF A DIVIDEND IS DECLARED BY THE CORPORATION AND
RECEIVED BY THE FOLLOWING STOCKHOLDERS, WHICH OF THE
FOLLOWING STATEMENTS IS FALSE?
A) NON-RESIDENT ALIENS ENGAGED IN TRADE OR BUSINESS ARE
LIABLE TO PAY 30% DIVIDEND TAX
ZERO
30%
20%
10%
126.
THE TY CORPORATION IS AN INTERNATIONAL CARRIER
DOING BUSINESS IN THE PHILIPPINES. ITS TAXABLE BASE FOR
INCOME TAX PURPOSES IS-(RPCPA)
A)
B)
C)
D)
127.
A RESIDENT INTERNATIONAL CARRIER HAS THE FOLLOWING
DATA FOR THE CURRENT YEAR: GROSS INCOME OF P700,000 AND
EXPENSES OF P200,000 FROM THE PHILIPPINES; GROSS INCOME OF
P500,000 AND EXPENSES OF P100,000 FROM HONGKONG. HOW MUCH
IS THE TAX PAYABLE OF THE CORPORATION?-(RPCPA)
A)
B)
C)
D)
P288,000
17,500
160,000
30,000
128.
A)
B)
C)
D)
129.
ON FEBRUARY 5, 2009, ZORRO CORPORATION DECLARES 20%
STOCK DIVIDEND AND ISSUED SHARES OF STOCKS AMOUNTING TO
STOCK DIVIDENDS
PROPERTY DIVIDENDS
CASH DIVIDENDS
LIQUIDATING DIVIDENDS
131.
IF A CORPORATION TO WHICH THE STOCKHOLDER IS
INDEBTED FORGIVES THE DEBT, THE TRANSACTION HAS THE
EFFECT OF A PAYMENT OF WHAT KIND OF DIVIDEND?-(RPCPA)
A)
B)
C)
D)
STOCK DIVIDEND
CASH DIVIDEND
LIQUIDATING DIVIDEND
INDIRECT DIVIDEND
A) 2% OF GROSS INCOME
B) 10% OF GROSS INCOME
C) 5% OF GROSS INCOME
135.
A CORPORATION WHICH WAS REGISTERED WITH THE BUREAU
OF INTERNAL REVENUE IN MAY, 2002 SHALL BE COVERED BY MCIT
IN
A)
B)
C)
D)
2005
2006
2008
2009
136.
WATCHOUT CORPORATION WHICH COMMENCED BUSINESS
OPERATIONS IN 2000 HAS A GROSS INCOME OF P632,000 AND
ALLOWABLE DEDUCTIONS OF P610,000 IN 2009. ITS INCOME TAX
PAYABLE DURING THE YEAR ISA)
B)
C)
D)
P7,700
7,040
6,660
12,640
137.
SALES
COST OF SALES
OPERATING EXPENSES
2009
1,700,000
1,050,000
615,000
2010
2,300,000
1,425,000
480,000
P13,000
12, 250
35,000
10,500
138.
IN NUMBER 137, THE INCOME TAX PAYABLE BY MAEKIS
CORPORATION IN 2010 ISA)
B)
C)
D)
P117,750
17,500
116,000
137,500
139.
IN NUMBER 137 ABOVE, THE JOURNAL ENTRY IN 2009 TO
RECORD EXCESS MCIT ISA) DEFERRED CHARGES-MCIT-(13,000-10,500)
INCOME TAX PAYABLE
B) DEFERRED CHARGES-MCIT
INCOME TAX PAYABLE
C) PROVISION FOR INCOME TAX
INCOME TAX
D) INCOME TAX PAYABLE
CASH
2,500
2,500
13,000
13,000
11,200
11,200
13,000
13,000
140.
IN NUMBER 137 ABOVE, THE ACCOUNTING ENTRY IN 2010 TO
RECORD THE CARRY FORWARD OF EXCESS MCIT AGAINST NORMAL
INCOME TAX LIABILITY IN 2009 ISA) DEFERRED CHARGES-MCIT
INCOME TAX PAYABLE
B) PROVISION FOR INCOME TAX
INCOME TAX PAYABLE
C) INCOME TAX PAYABLE
DEFERRED CHARGES-MCIT
D) RETAINED EARNINGS
DEFERRED CHARGES-MCIT
1,800
1,800
124,500
124,500
2,500
2,500
1,800
1,800
141.
STATEMENT 1:IF THE QUARTERLY INCOME TAX IS BASED ON
MCIT, THE EXCESS MCIT FROM THE PREVIOUS TAXABLE YEAR/S
SHALL NOT BE ALLOWED TO BE CREDITED
FALSE, FALSE
FALSE, TRUE
TRUE, FALSE
TRUE, TRUE
142.
ADY CORPORATION HAS THE FOLLOWING
YEAR:
1ST QTR
NORMAL INCOME TAX
P10,000
MCIT
8,000
TAXES WITHHELD DURING THE QTR 2,000
EXCESS WHT PRIOR YEAR
1,000
P7,000
4,000
3,000
2,000
143.
IN NUMBER 142, THE INCOME TAX PAYABLE FOR THE 2 ND
QUARTER ISA)
B)
C)
D)
P15,000
20,000
27,000
23,000
144.
RELLY CORPORATION HAD THE FOLLOWING ITEMS OF
INCOME AND EXPENSES DURING THE YEAR:
GROSS RECEIPTS
COST OF SERVICES
DIVIDENDS FROM A DOMESTIC CO.
GENERAL AND ADMINISTRATIVE EXPENSES
P1,000,000
850,000
35,000
120,000
C) 9,000
D) 30,000
145.
MASAGANA CORPORATION, A DOMESTIC CORPORATION
ORGANIZED IN 2004 HAS THE FOLLOWING RECORDS OF
COMPUTATION OF ITS INCOME TAX DURING THE THREE(3)
CONSECUTIVE TAXABLE YEARS:
2007
P3,000,000
(1,800,000)
80,000
1,280,000
800,000
480,000
35%
168,000
SALES
LESS: COST OF SALES
ADD: NET CAPITAL GAIN
GROSS INCOME
LESS: DEDUCTIONS
TAXABLE INCOME
TAX RATE
NORMAL INCOME TAX
MCIT:
2007-NONE
2008-(1,150,000 X 2%)
2009-(2,060,000 X 2%)
TAX PAYABLE
2008
P3,600,000
(2,450,000)
1,150,000
925,000
225,000
35%
78,750
2009
P4,300,000
(2,250,000)
10,000
2,060,000
1,945,000
115,000
30%
34,500
23,000
168,000
78,750
41,200
41,200
AND
147
ARE
BASED
ON
THE
FOLLLOWING
146.
IZA CORPORATION, A DOMESTIC CORPORATION, HAS THE
FOLLOWING DATA:
2008
2009
GROSS INCOME
P3,500,000 2,400,000
TAXABLE INCOME
125,000
500,000
P43,750
70,000
26,250
40,000
147.
IS:
A)
B)
C)
D)
P150,000
48,000
148,750
123,750
SPECIAL
TOPIC-IMPROPERLY
EARNINGS TAX
ACCUMULATED
148.
A PENALTY AND A FORM OF DETERRENT TO THE AVOIDANCE
OF TAX UPON SHAREHOLDERS WHO ARE SUPPOSED TO PAY
DIVIDENDS TAX ON THE EARNINGS DISTRIBUTED TO THEM BY THE
STOCKHOLDERS
A)
B)
C)
D)
149.
A)
B)
C)
D)
150.
WHICH OF THE FOLLOWING IS SUBJECT TO IMPROPERLY
ACCUMULATED EARNINGS TAX?
A)
B)
C)
D)
INSURANCE COMPANIES
BUSINESS PARTNERSHIPS
BANKS
CLOSELY-HELD COMPANIES
151.
ALL OF THE FOLLOWING, EXCEPT ONE, ARE ADDITIONS TO
TAXABLE INCOME FOR PURPOSES OF COMPUTING IMPROPERLY
ACCUMULATED TAXABLE INCOMEA)
B)
C)
D)
DOMESTIC
CORPORATION,
HAS
THE
P1,500,000
600,000
60,000
5,000
35,000
120,000
300,000
P234,000
265,600
275,500
249,000
153.
THE IMPROPERLY ACCUMULATED EARNINGS TAX ISA) P64,415
B) 34,765
C) 36,425
D) 32,275
P3,400,000
3,800,000
3,960,000
3,100,000
340,000
56,000
P81,800
93,000
301,000
70,000
155.
HOW MUCH IS THE IMPROPERLY ACCUMULATED EARNINGS
TAX IN 2009?
A)
B)
C)
D)
P81,500
93,800
91,500
NONE
156.
CORPORATIONS
CAN
CLAIM
OPTIONAL
STANDARD
DEDUCTION IN AN AMOUNT NOT EXCEEDING
A) 10% OF GROSS INCOME
B) 10% OF GROSS SALES OR GROSS RECEIPTS, AS THE CASE MAYBE
C) 40% OF GROSS INCOME
D) 40% OF THE GROSS INCOME OR GROSS RECEIPTS, AS THE CASE
MAYBE
157.
ANA CORPORATION HAS THE FOLLOWING DATA DURING THE
YEAR:
GROSS SALES
COST OF SALES
EXPENSES
P1,540,000
645,000
460,460
OPTIONAL
STANDARD
A)
B)
C)
D)
P537,000
434,540
741,000
279,000
INHERITED PROPERTIES
YES
YES
NO
NO
BUS
YES
NO
YES
NO
159.
MAX AND CHOOK CONTRIBUTED MONEY AND PURCHASED
FIVE(5) HECTARES OF LAND IN 2008. IN THE SAME YEAR, THEY SOLD
THE LAND AT A HIGHER PRICE. IN 2009, THEY BOUGHT A BIGGER
PARCEL AND SOLD IT AFTER THREE(3) MONTHS AT DOUBLE THE
PRICE. THEY PAID THE CORRESPONDING CAPITAL GAINS TAXES.
QUESTION 1: HAVE THEY FORMED AN UNREGISTERED PARTNERSHIP
SUBJECT TO TAX?
QUESTION 2: ARE THEIR RESPECTIVE SHARES IN THE INCOME TAXABLE TO
THEM?
Q#1
Q#2
A) YES
YES
B) NO
YES
C) YES
NO
D) NO
NO
160.
WHEN THEIR PARENTS DIED,
CHERRY AND GERRY
INHERITED FIVE(5) HECTARES OF LAND IN ANTIPOLO CITY. THEY
DECIDED TO INVEST CAPITAL AND DEVELOPED THE LAND INTO A
SUBDIVISION WHICH THEY NAMED AS CHERRY-GIL SUBDIVISION.,
WITH SMALL LOTS BEING SOLD EITHER ON INSTALLMENT OR IN
CASH BASIS.
162.
THE MEMBERS OF THIS FORM OF BUSINESS ORGANIZATION
SHALL BE LIABLE FOR INCOME TAX ONLY ON THEIR INDIVIDUAL
CAPACITY, AND THEIR SHARE IN THE PROFITS, WHETHER
DISTRIBUTED OR OTHERWISE, SHALL BE RETURNED FOR TAXATION.
THIS APPLIES TO-(RPCPA)
A)
B)
C)
D)
163.
THE SHARE OF A PARTNER IN THE PROFITS OF A GENERAL
PROFESSIONAL PARTNERSHIP IS REGARDED AS RECEIVED BY HIM
AND THUS TAXABLE ALTHOUGH NOT YET DISTRIBUTED. THIS
PRINCIPLE IS KNOWN ASA)
B)
C)
D)
164.
UNDER THE NIRC, INCOME IS RECEIVED NOT ONLY WHEN IT IS
AC TUALLY OR PHYSICALLY TRANSFERRED TO A PERSON BUT EVEN
WHEN IT IS CONSTRUCTIVELY RECEIVED BY HIM. AN EXAMPLE OF
INCOME CONSTRUCTIVELY RECEIVED IS-(RPCPA)
A) RENTAL PAYMENTS REFUSED BY THE LESSOR, WHEN THE LESSEE
TENDERED PAYMENT AND THE LATTER MADE A JUDICIAL DEPOSIT
OF THE RENTAL DUE
B) INTEREST COUPONS NOT YET DUE AND PAYABLE
C) INTEREST ON SAVINGS DEPOSIT NOT YET CREDITED TO THE
ACCOUNT OF THE DEPOSITOR
D) ADVANCE DEPOSIT MADE BY THE LESSEE
165.WHICH OF THE FOLLOWING IS CONSIDERED OR CONSTRUED AS AN
EXAMPLE OF CONSTRUCTIVE RECEIPT?-(RPCPA)
A) RETIREMENT BENEFITS, PENSIONS, GRATUITIES
B) FEES PAID TO A PUBLIC OFFICIAL
C) INTEREST COUPONS THAT HAVE MATURED AND ARE PAYABLE BUT
HAVE NOT BEEN CASHED
D) DEPOSITS FOR RENTALS TO ANSWER FOR DAMAGES, RESTRICTED
AS TO USE
NUMBERS 166 AND 167 ARE BASED ON THE FOLLOWING INFORMATION:
BINGBONG AND COMPANY , A BUSINESS PARTNERSHIP, HAD THE
FOLLOWING DATA OF INCOME AND EXPENSES:
GROSS INCOME
EXPENSES
DIVIDEND FROM A DOMERTIC CORP.
INTEREST ON BANK DEPOSIT(GROSS OF TAX)
P750,000
200,000
75,000
10,000
PARTNERS BING AND BONG SHARE PROFITS AND LOSSES IN THE RATIO OF
55% AND 45%, RESPECTIVELY.
166.THE INCOME TAX PAYABLE BY BINGBONG AND COMPANY
A)
B)
C)
D)
P218,750
187,500
165,000
192,500
167. THE FINAL TAXES ON THE RESPECTIVE SHARE OF BING AND BONG IN
THE PARTNERSHIP INCOMEA)
B)
C)
D)
BING
P25,740.00
31,157.50
24,227.50
30,250.00
BONG
21,060.00
25,492.50
19,822.50
55.045.00
PING
75%
P125,000
80,000
30,000
MARRIED
NONE
PONG
25%
P325,000
190,000
12,500
UNMARRIED
2
P72,600
NONE
44,550
45,900
GROSS
INCOME
EXPENSES
W/DRAWAL,
PANDAY
W/DRAWAL,
PANDAK
PROF. PART. A
PROF. PART. B
BUS.PART. C
BUS. PART. D
P400,000
300,000
500,000
200,000
250,000
500,000
200,000
300,000
60,000
40,000
-
40,000
20,000
-
P20,500
18,500
11,500
59,000
P12,500
48,000
16,500
24,000
P3,000
4,000
7,000
22,000
P17,000
14,600
22,200
15,200
ESTATE
LEGACY
TRUST
WILL
LEGATEE
DEVISEE
TRUSTOR
BENEFICIARY
LEGATEE
DEVISEE
TRUSTOR
BENEFICIARY
P30,000
2,500
5,500
50,000
A WILL
A TRUST
AN INHERITANCE
PACTO DE RETRO
NET INCOME
INCOME FROM TRUSTS
DISTRIBUTED DURING THE
YEAR
TRUSTEE CAIPAS
TRUSTEE JUDAS
P120,000
200,000
50,000
75,000
P143,000
23,250
175,000
300,000
CAIPAS
24,375
24,375
26,000
65,000
JUDAS
24,375
40,625
39,000
23,250
CAPITAL ASSETS
LIQUID ASSETS
ORDINARY ASSETS
FIXED ASSETS
INDIVIDUAL
ESTATES
CORPORATION
TRUSTS
CAPITAL GAIN
CAPITAL GAIN
CAPITAL LOSS
CAPITAL LOSS
HOLDING PERIOD
6 MONTHS
2 YEARS
12 MONTHS
10 YEARS
AMOUNT
P50,000
45,000
23,000
28,000
P484,000
444,000
435,500
447,000
ON INCOME AND
2009
P60,800
3,000
8,500
5,200
2,900
-
P58,700
53,300
36,700
56,700
P15,600
69,000
36,000
45,600
A)
B)
C)
D)
ZERO
3,000
4,000
8,000
2008
P25,000
8,000
40,000
2009
P95,000
40,000
5,000
P5,000
ZERO
P(25,000)
(57,000)
P78,000
55,000
115,000
10,000
D) RESCISSIBLE SALE
198. ABC BOUGHT FROM XYZ CORPORATION TEN SHARES OF STOCK.
SIXTY DAYS THEREAFTER, THE CORPORATION WAS ADJUDGED
BANKRUPT AND ITS STOCK AS WORTHLESS. THE LOSS OF ABC TO BE
REPORTED FOR INCOME TAX PURPOSES IS CLASSIFIED AS:-(RPCPA)
A)
B)
C)
D)
A WAGERING LOSS
NON-DEDUCTIBLE LOSS FOR INCOME TAX PURPOSES
SHORT-TERM CAPITAL LOSS
CASUALTY LOSS
P360,000
300,000
72,000
60,000
201. BASED ON THE PROBLEM IN NUMBER 200 ABOVE, WHAT IS THE COST
BASIS OF THE NEW RESIDENCE?
A)
B)
C)
D)
P3,000,000
2,400,000
4,000,000
5,000,000
HOLDING PERIOD
GAIN/LOSS
APARTMENT HOUSE
RESIDENTIAL HOUSE
VACANT LOT
JEWELRY FOR PERSONAL USE
JEWELRY IN A JEWELRY STORE
CAR FOR PERSONAL USE
TRANSPORTATION EQUIPMENT
10 YEARS
6 YEARS
12 YEARS
6 MONTHS
2 MONTHS
4 YEARS
12 MONTHS
P35,000
120,000
72,500
4,200
8,000
(20,000)
(10,000)
DURING THE YEAR, MARIA HAD A NET INCOME FROM BUSINESS (OTHER
THAN THE SALE OF THE PROPERTIES ABOVE) IN THE AMOUNT OF P5,000.
THE TAXABLE INCOME BEFORE PERSONAL EXEMPTION OF MARIA IN 2008
ISA)
B)
C)
D)
P32,000
38,000
22,200
42,200
203. ASSUMING THAT THE NET INCOME OF MARIA IN 2009 WAS P130,000
WHICH INCLUDES A CAPITAL GAIN OF P6,000. THE TAXABLE INCOME
BEFORE PERSONAL EXEMPTION IN 2009 ISA)
B)
C)
D)
P125,000
130,000
124,200
120,000
P180,000
120,000
150,000
210,000
205. THE CAPITAL GAINS TAX OF MR. CRUZ IF THE PROCEEDS OF SALE WAS
UTILIZED IN ACQUIRING A NEW RESIDENCEA)
B)
C)
D)
P210,000
150,000
180,000
ZERO
P210,000
150,000
180,000
ZERO
207. THE CAPITAL GAINS TAX PAYABLE ASSUMING THAT MR. CRUZ WILL
UTILIZE ONLY P1,500,000 OF THE PROCEEDS IN ACQUIRING A NEW
RESIDENCE?
A)
B)
C)
D)
P90,000
210,000
ZERO
105,000
P18,000
18,900
7,200
9,000
P22,400
150,000
100,000
125,000
50,000
P12,500
(75,000)
148,500
(25,000)
D) 11,375
213. ROLLY SOLD 1,000 NOT LISTED AND TRADED SHARES OF STOCKS. THE
DATA OF WHICH ARE AS FOLLOWS:
SELLING PRICE
FAIR MARKET VALUE
EXPENSES ON THE SALE
PURCHASE PRICE
EXPENSES UPON ACQUISITION
P600,000
620,000
10,000
440,000
3,000
P13,000
14,000
9,700
12,850
SELLING PRICE
COST
DATE SOLD
LISTED &
TRADED
P1,500,000
1,230,000
01-02-02
NOT LISTED
& TRADED
630,000
570,000
03-16-02
LISTED &
& TRADED
210,000
170,000
11-14-02
P3,000
32,000
11,550
3,150
NUMBERS 215
INFORMATION:
THRU
218
ARE
BASED
ON
THE
FOLLOWING
DATE OF SALE
DATE OF ACQUISITION
COST
SELLING PRICE
P80,000
256,000
175,000
144,500
P135,000
360,000
115,000
150,000
215. THE CAPITAL GAINS TAX ON THE FEB. 13, 2009 SALE ISA)
B)
C)
D)
P2,750
1,375
675
55,000
216. THE CAPITAL GAINS TAX ON THE APRIL 5, 2009 SALE ISA)
B)
C)
D)
P10,400
5,400
5,200
ZERO
217. THE CAPITAL GAINS TAX/REFUND ON THE JULY 20, 2009 SALE ISA)
B)
C)
D)
P3,000
(3,000)
1,500
ZERO
220. MISS BEAUTY, WHOSE TAXABLE YEAR IS THE CALENDAR YEAR, HAD
THE FOLLOWING STOCK TRANSACTIONS:
DEDUCTIBLE
P1,000
0
125
250
NON-DEDUCTIBLE
P0
1,000
0
750
P5,000
6,000
40,000
16,000
4,000
550,000
IN 2008, MAUI HAD A NET INCOME OF P5,000 AND A CAPITAL LOSS OF P7,500
221. THE NET CAPITAL GAIN/CAPITAL LOSS (BEFORE CARRY-OVER) IN 2009
ISA)
B)
C)
D)
P17,000
9,000
2,000
(7,000)
P7,500
ZERO
9,000
5,000
P150,000
120,000
100,000
ZERO
SOURCES OF INCOME
2006
2007
2008
16,000,000
8,000,000
12,000,000
14,000,000
14,000,000
16,000,000
ZERO
P157,500
150,000
300,000
227. THE WIDOW OF YOUR BEST FRIEND HAS JUST BEEN PAID P1,000,000 ON
ACCOUNT OF THE LIFE INSURANCE POLICY OF THE DECEASED HUSBAND.
SHE ASKS YOU WHETHER SHE SHOULD DECLARE THE AMOUNT FOR
INCOME TAX PURPOSES OR FOR ESTATE TAX PURPOSES-(RPCPA)
1ST ADVICE: THE PROCEEDS OF LIFE INSURANCE PAID TO THE
BENEFICIARY UPON THE DEATH OF THE INSURED ARE
EXEMPT FROM INCOME TAX AND NEED NOT BE DECLARED
FOR INCOME TAX PURPOSES
2ND ADVICE: THE PROCEEDS OF LIFE INSURANCE WOULD HAVE TO BE
DECLARED FOR ESTATE TAX PURPOSES IF THE DESIGNATION
OF THE BENEFICIARY WAS IRREVOCABLE, OTHERWISE IT
NEED NOT BE DECLARED
A)
B)
C)
D)
BENEFICIARY
PREMIUMS PAID
RANK-AND-FILE
PERSONNEL MANAGER
TREASURER
GENERAL MANAGER
BOARD CHAIRMAN
CHILDREN
PARENTS
CORPORATION
CORPORATION
CORPORATION
P5,000
10,000
15,000
15,000
15,000
P60,000
45,000
5,000
15,000
D) NO TO BOTH QUESTIONS
NUMBERS 236
INFORMATION:
THRU
238
ARE
BASED
ON
THE
FOLLOWING
P30,000
60,000
P30,000
30,000
30,000
P60,000
P60,000
60,000
60,000
60,000
60,000
238. SUPPOSE THE MAJOR REPAIR INCREASED THE VALUE NBY P40,000 AND
IT ALSO PROLONGED THE LIFE OF THE ASSET, THE ACCOUNTING ENTRY
TO RECORD THE REPAIR IN THE BOOKS OF LEXUS CORPORATION ISA) ALLOWANCE FOR DEPRECIATION
CASH
B) BUILDING
CASH
P60,000
P60,000
40,000
40,000
C) BUILDING
ALLOWANCE FOR DEPRECIATION
CASH
D) NONE OF THE ABOVE
40,000
20,000
60,000
P14,240
14,760
13,600
14,940
P14,375
15,000
10,781.25
NONE
YES, YES
NO, YES
YES, NO
NO,NO
C) THE ADJUSTED COST OF THE OLD SHARES AND THE NEW SHARES OF
THE CORPORATION
D) THE BOOK VALUE OF THE SHARES OF THE PRECEDING CALENDAR
YEAR
249. GENERALLY, SALES OF REAL PROPERTY ARE SUBJECT TO TAX. WHICH
OF THE FOLLOWING SALES OF LAND IS NOT ALLOWED BY THE LAW TO BE
SUBJECTED TO TAX?-(RPCPA)
A)
B)
C)
D)
BUSINESS TAX
VALUE-ADDED TAX
PRIVILEGE TAX
OCCUPATION TAX
ESTATE TAX
FRANCHISE TAX
DONORS TAX
SPECIAL ASSESSMENT
DOMESTIC CORPORATIONS
MEMBERS OR BENEFICIARIES OF PARTNERSHIP OR TRUST
RESIDENT FILIPINO CITIZENS
NON-RESIDENT ALIENS
P105,000
60,000
90,000
110,000
GROSS
INCOME
ALLOWABLE
DEDUCTIONS
TAX PAID
PHIL.
U.S.A.
JAPAN
1,000,000
400,000
300,000
800,000
200,000
200,000
P80,000
25,000
P75,000
65,000
60,000
72,000
257. PENNY GARCIA , SINGLE HAS THE FOLLOWING DATA DURING THE
YEAR:
GROSS INCOME, PHIL.
GROSS INCOME, USA
EXPENSES, PHIL.
EXPENSES, USA
TAX PAID IN THE STATE OF CALIFORNIA
FEDERAL INCOME TAX PAID
P120,000
200,000
80,000
160,000
40,000
8,500
P51,500
5,725
12,800
1,650
258. IN NUMBER 257, IF YOU ARE THE TAXPAYER, WILL YOU OPT TO CLAIM
THE FOREIGN TAX PAID AS TAX CREDIT OR AS A DEDUCTION?
A) TAX CREDIT BECAUSE THE TAX LIABILITY WOULD BE P1,250 ONLY
B) TAX CREDIT BECAUSE THE TAX LIABILITY WOULD BE P2,500 ONLY
C) DEDUCTION BECAUSE THE TAX LIABILITY WOULD BE P2,150 ONLY
D) DEDUCTION BECAUSE THE TAX LIABILITY WOULD BE P7,000 ONLY
CHAPTER 9-LOSSES
259. ONE IS NOT A DEDUCTIBLE LOSS-(RPCPA)
A) LOSS DUE TO REMOVAL OR DEMOLITION OF OLD BUILDING, THE
SCRAPPING OF OLD MACHINERY OR EQUIPMENT INCIDENT TO
RENEWAL OR REPLACEMENT
B) LOSS DUE TO REMOVAL OF
BUILDING OR REAL ESTATE
PURCHASED WHEN THE PURCHASE WAS FOR THE ACQUISITION OF
THE LAND AND WITHOUT INTENDING TO USE THE BUILDING
C) LOSS IN VALUE OF SECURITIES OF SUCH EXTENT THAT THE
SECURITIES HAVE BECOME WORTHLESS AND ARE WRITTEN OFF
D) LOSS IN USEFULNESS IN BUSINESS OF AN ASSET SO THAT THE
BUSINESS IS DISCONTINUED OR THE ASSET IS DISCARDED
260.MAX AND JESS ARE BUSINESS COMPETITORS. MAX PURCHASED A
LAND BESIDE THE BUSINESS PREMISES OF JESS WITH THE INTENTION OF
ERECTING A NEW 4-STOREY BUILDING. THE LAND WHICH WAS VALUED
AT P1,000,000 HAD AN ALMOST DILAPIDATED BUILDING THEREON
ASSESSED AT P150,000. HE SPENT P40,000 FOR ITS DEMOLITION AND SOLD
ITS SCRAP FOR P25,000. THE CONSTRUCTION OF THE NEW BUILDING COST
HIM P10,000,000.
WHEN JESS KNEW THE INTENTION OF MAX, HE DECIDED ALSO TO
DEMOLISH HIS 20-YEAR OLD BUILDING AND TO PUT UP A NEW ONE. THE
DEMOLITION COST HIM P80,000 BUT RAISED P35,000 FROM THE SCRAP, AND
THE CONSTRUCTION COST OF THE NEW 6-STOREY BUILDING WAS
P15,000,000.
MAX ONLY
JESS ONLY
BOTH OF THEM
NEITHER OF THEM
P1,000,000
2,615,000
1,615,000
1,535,000
NONE
P200,000
185,000
215,000
264. REFER TO ITEM 263 DATA. THE TAXPAYER CAN CLAIM S DEDUCTIBLE
LOSS OF-(RPCPA)
A)
B)
C)
D)
P1,000,000 IN 2008
1,000,000 IN 2009
500,000 IN 2008
500,000 IN 2009
ZERO
8,500
8,600
10,000
P1,928,000
2,000,000
ZERO
1,428,000
2,000,000
2,000,000
1,428,000
72,000
1,500,000
500,000
500,000
500,000
72,000
1,428,000
2,000,000
PROPERTY A
TOTAL
800,000
550,000
200,000
PROPERTY B
PARTIAL
1,200,000
600,000
150,000
500,000
P250,000
800,000
50,000
600,000
269. BASED ON THE DATA IN NUMBER 268 ABOVE, THE DEDUCTIBLE LOSS
ON PROPERTY B ISA)
B)
C)
D)
P600,000
350,000
500,000
1,200,000
3,560,000
1,250,000
(P131,250)
(119,000)
(180,000)
(250,000)
P1,335,000
2,150,000
1,400,000
1,435,000
P238,500
278,250
130,462.50
97,387.50
P220,000
280,000
200,000
210,000
P30,000
12,500
80,000
P97,500
35,000
55,000
110,000
STATEMENT 1 ONLY
STATEMENTS 1 AND 2
STATEMENT 3 ONLY
NONE
2007
P3,300,000
2,400,000
2008
2,340,000
1,070,000
2009
825,000
380,000
140,000
32,000
28,000
20,000
16,400
13,000
-
18,500
22,000
C) (427,000)
D) 1,068,000
280. IN QUESTION 279, THE TAXABLE INCOME/OPERATING LOSS IN 2008 ISA)
B)
C)
D)
ZERO
274,400
(132,600)
254,400
P18,000
ZERO
170,600
18,000
P261,400
ZERO
274,400
1,286,400
P190,700
939,580
248,200
232,500
ZERO
P62,000
60,000
90,000
285. NINI COMPANY WAS MERGED INTO OTOY COMPANY. NINI COMPANY
TRANSFERRED ALL ITS PROPERTIES WITH A BOOK VALUE OF P4,000,000 TO
OTOY COMPANY FOR WHICH IT RECEIVED SHARES OF THE LATTER WITH A
FAIR MARKET VALUE OF P3,600,000. SANKO WAS A STOCJHOLDER OF NINI
COMPANY (WHICH HE ACQUIRED AT A COST OF P500,000) WHEN THE
MERGER WAS EFFECTED AND RECEIVED SHARES OF OTOY COMPANY
WITH A FAIR MARKET VALUE OF P360,000. THE AMOUNT OF LOSS
DEDUCTIBLE BY NINI COMPANY ISA)
B)
C)
D)
P400,000
4,000,000
140,000
ZERO
P400,000
140,000
500,000
ZERO
P1,000,000
960,000
40,000
ZERO
288. SHASHA, SINGLE, HAS THE FOLLOWING DATA IN 2008 AND 2009:
2008
NET INCOME BEFORE
PERSONAL EXEMPTION
AND BAD DEBT
LESS: BAD DEBT
WRITTEN OFF
NET INCOME AFTER
BAD DEBT
2009
BAD DEBT
RECOVERED
CASE1
CASE2
CASE3
50,000
50,000
50,000
70,000
68,000
30,000
(20,000)
(18,000)
20,000
70,000
60,000
30,000
P800,000
440,000
80,000
520,000
280,000
ADDITIONAL INFORMATION:
A. ACCOUNTS WRITTEN OFF DURING THE YEAR AND CHARGED TO
ALLOWANCE FOR BAD DEBTS-P50,000
B. RECOVERIES ON ACCOUNTS RECEIVABLE PREVIOUSLY WRITTEN
OFF IN 2008 AND CREDITED TO ALLOWANCE FOR BAD DEBTS
P280,000
260,000
330,000
340,000
P35,795.45
43,750
49,431.82
31,250
P25,000
20,000
10,000
4,000
2,000
P151,000
149,000
141,000
139,000
P6,000
7,000
3,000
10,000
P500,000
400,000
3,000
2,000
1,500
5,000
P92,000
93,500
88,500
100,000
P550,000
600,000
560,000
570,000
P670,000
640,000
580,000
570,000
P15,000
ZERO
10,000
100,000
P20,000
500
25,000
10,000
P20,000
30,000
55,000
55,500
P1,450,000
565,300
325,800
25,500
6,000
A)
B)
C)
D)
P870,000
814,500
475,320
503,400
P550,320
814,500
542,520
889,500
ACCRUAL BASIS
CASH BASIS OR CASH RECEIPTS AND DISBURSEMENTS METHOD
HYBRID METHOD
CROP YEAR BASIS
CASH BASIS
CROP YEAR BASIS
CONSTRUCTIVE RECEIPT OF INCOME
ACCRUAL METHOD
P50,000
200,000
100,000
150,000
310. BASED ON THE DATA IN NO. 309 ABOVE, GORDON, USING CASH
METHOD CAN DEDUCT AN EXPENSE OFA)
B)
C)
D)
P50,000
200,000
100,000
150,000
ACCRUAL BASIS
CASH BASIS
PERCENTAGE OF COMPLETION METHOD
HYBRID METHOD
A)
B)
C)
D)
314. ALL OF THE FOLLOWING, EXCEPT ONE, ARE NOT TAKEN INTO
ACCOUNT IN DETERMINING THE CORRECT AMOUNT OF INITIAL
PAYMENTS
A)
B)
C)
D)
COMMISSIONS
OTHER SELLING EXPENSES
INSTALLMENT PAYMENTS IN THE YEAR OF SALE
GROSS PROFIT
P50,000
100,000
300,000
400,000
P50,000
50,000
150,000
150,000
P50,000
25,000
37,500
12,500
P50,000
25,000
37,500
12,500
P100,000
250,000
150,000
200,000
P150,000
550,000
700,000
250,000
P150,000
550,000
700,000
250,000
P450,000
P42,000
25,200
9,000
NONE
P42,000
25,200
16,800
NONE
P50,000
20,000
20,000
155,000
155,000
P45,000
90,000
200,000
NONE
P200,000
155,000
45,000
NONE
DOWN PAYMENT
P300,000
BALANCE IS PAYABLE IN MONTHLY INSTALLMENTS OF P100,000
BEGINNING NOVEMBER 15, 2008 UNTIL FULLY PAID.
THE INCOME TO BE REPORTED IN 2008
A)
B)
C)
D)
P75,000
300,000
45,000
30,000
MANAGERIAL
MANAGERIAL
P6,500
4,000
5,000
5,500
P6,500
4,000
5,000
5,500
STATEMENT 2
STATEMENT 1
STATEMENTS 1 AND 2
NEITHER STATEMENTS
P57,000
30,000
45,500
72,500
P96,969
18,823
17,767
88,235
D) 25,760
338. IN MAY 2008, A NON-STOCK, NON-PROFIT UNIVERSITY PROVIDED A 3DAY VACATION TRIP TO BORACAY ISLAND TO THE UNIVERSITYS EVP.
THE TOTAL EXPENSES INCURRED BY THE SCHOOL WAS P20,000. THE
FRINGE BENEFIT TAX ISA)
B)
C)
D)
P6,400
9,412
10,303
NONE
P8,000
25,000
42,000
34,000
D) 58,823.53
342. BASED ON NUMBER 341 ABOVE, THE DEDUCTIBLE EXPENSE FROM THE
GROSS INCOME OF EXTRA COPORATION ISA)
B)
C)
D)
P14,705.88
4,705.88
12,132.35
2,941.18
P186,000
136,000
50,000
250,000
P220,000
120,000
60,000
THE ENTRY TO RECORD THE ABOVE TRANSACTION ISA) FRINGE BENEFITS TAX
FRINGE BENEFIT EXPENSE
CASH
FRINGE BENEFIT TAX PAYABLE
56,471
400,000
400,000
56,471
400,000
400,000
186,000
64,000
P64,000
50,000
186,000
250,000
DUPLICATE
TRIPLICATE
QUADRUPLICATE
QUINTUPLICATE
PRESIDENT
GENERAL MANAGER
TREASURER
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
FILIPINO
CHINESE
ENGLISH
SPANISH
STATEMENT 2
TRUE
FALSE
TRUE
D) TRUE
FALSE
P130,000
200,000
220,000
165,000
P1,850,000
1,025,000
825,000
70,250
895,250
260,000
635,250
ADDITIONAL INFORMATION:
1.INCLUDED IN THE SUNDRY INCOME ARE THE FOLLOWING:
-DIVIDENDS FROM DOMESTIC CORPORATION
-DIVIDENDS RECEIVED FROM RESIDENT FOREIGN CORP
-PROCEEDS FROM SALE OF COMPANY ASSETS
P42,500
15,000
4,750
P12,000
17,500
8,620
4,500
P158,320
184,537.50
35,763.50
158,175
P180,000
122,800
73,500
27,000
23,100
16,000
8,000
120,000
60,000
630,400
EXPENSES:
REAL ESTATE TAX
COMMUNITY TAX
SURCHARGE FOR LATE FILING OF 2008 ITR
P3,500
945
12,000
24,000
32,000
50,000
5,000
27,250
154,695
P246,940
236,840
66,040
256,840