Multiple Choice Questions CPA Reviewer in Taxation

INCOME TAXATION OF INDIVIDUALS & CORPORATION
Instruction: Select the best answer to each of the following questions.
1
. An exemption allowed to a taxpayer that has qualified legitimate, and/or recognized or legally adopted
children:
a. Additional exemption.
b. Special additional personal exemption.
c. Optional standard deduction.
d. Personal exemption.
2
. A feature of ordinary gains as distinguished from capital gains:
a. Gains from sales of assets not stock in trade.
b. May or may not be taxable in full.
c. Sources are capital assets.
d. No holding period.
3
. The following, except one, may claim personal exemptions:
a. Non-resident alien not engage in trades or business in the Philippines.
b. Non-resident alien engage in trade or business in the Philippines.
c. Resident alien.
d. Citizen.
4
. On capital gain tax on real property, which of the following statements is not true?
a. The tax should be paid, if in one lump sum, within 30 days from the date of sale.
b. The term “initial payment” is synonymous to “down payment”.
c. The installment payment of the tax should be made within 30 days from receipt of each installment
payment on the selling price.
d. The tax may be paid in installment if the initial payments do not exceed 25% of the selling price.
5
. Which of the following taxpayers whose personal exemption is subject to the law on reciprocity under
the Tax Code?
a. Non-resident citizen with respect to his income derived outside the Philippines.
b. Non-resident alien who shall come to the Philippines and stay therein for an aggregate period
more than 180 days.
c. Resident alien deriving income from a foreign country.
d. Non-resident alien not engage in trade or business in the Philippines whose country allows
personal exemption to Filipinos who are not residing but are deriving income from said country.
6
. RDE was retired by his employer corporation in 2003 and paid P1,000,000 as a retirement gratuity
without any deduction for withholding tax. The corporation became bankrupt in 2004. Can the BIR
subject the P1,000,000 retirement gratuity to income tax?

1st answer: Yes, if the retirement gratuity was paid based on a reasonable pension plan were RDE
was 50 years old and has served the corporation.
2nd answer: No, if the RDE was forced by the corporation to retire.
a. Both answers are wrong.
b. Both answers are correct.
c. 1st answer is correct, 2nd answer is wrong.
d. 1st answer is wrong, 2nd answer is correct.
7
. The widow of your best friend has just been paid P1,000,000 on account of life insurance policy of the
decease husband. She asks you whether she should declare the amount for income taxes purposes
or for estate tax purposes.
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 advise: The proceeds of life insurance would have to be declared for the estate tax purposes if
the designation of the beneficiary was irrevocable, otherwise it need not be declared.
a. Both advises are correct.
b. 1st advice correct, 2nd advice are wrong.
c. Both advises are wrong.
d. 1st advice wrong, 2nd advice correct.
8
. Mr. Juan dela Cruz transferred his commercial land with a cost of P500,000 but with a fair market
value of P 750,000 to JDC Corporation in exchange of the stocks of the corporations with par value of
P1,000,000. As a result of the transfer he became the major stockholder of the corporation.
As a result of the transfer,

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Multiple Choice Questions CPA Reviewer in Taxation

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 stock and the fair market value
of the land.
c. No recognized gain because the land was in exchange or purely stocks and Mr. dela Cruz became
the majority stockholders.
d. No recognized gain because the land was in exchange of stocks of the corporation.
9
. Gross income is reported partially in each taxable year in proportion to collections made in such period
as it bears to the total contract price refers to:
a. Crop year basis method.
b. Percentage of completion basis method.
c. Accrual method.
d. Installment sales method.
10
. “Schedular system of income taxation” means:
a. All types of income are added together to arrive at gross income.
b. Separate graduated rates are imposed on different types of income.
c. Capital gains are excluded in determining gross income.
d. Compensation income and business professional income are added together in arriving at gross
income.
11
. It is important to know the source of income for tax purposes (i.e., from within or without the
Philippines) because:
a. Some individual and corporate taxpayers are taxed on their worldwide income while others are
taxable only upon income from sources within the Philippines.
b. The Philippines imposes income tax only on income from sources within.
c. Some individual taxpayers are citizens while others are aliens.
d. Export sales are not subject to income tax.
12
. In cases of deduction and exemption on income tax return doubts shall be resolved:
a. Strictly against the taxpayer.
b. Strictly against the government.
c. Liberally in favor of the taxpayer.
d. Liberally in favor of the employer.
13
. The term “capital assets” includes:
a. Stock in trade or other property included in the taxpayer’s inventory.
b. Real property not used in the trade or business of taxpayer.
c. Property primarily for sale to customers in the ordinary course of his trade or business.
d. Property used in the trade or business of the taxpayer and subject to the depreciation.
14
. Lots being rented when subsequently sold are classified as:
a. Capital assets.
b. Liquid assets.
c. Ordinary assets.
d. Fixed assets.
15
. The following are examples of corporate expenses deductible from gross income, except one:
a. Representation expenses designed to promote business.
b. Contributions to drum up business, like contributions of soft drinks to barrio fiestas.
c. Expenses paid to an advertising firm in order to create a favorable image for the corporation.
d. Premiums on life insurance covering the life of an employee if the beneficiary is his heirs.
16
. ABC Corporation took two key men insurance on the life of its President, Mr. X. In one policy, the
beneficiary is the corporation to compensate it for its expected loss in case of death of its president.
The other policy designates Mr. X’s wife as its irrevocable beneficiary.

Question 1 – Are the insurance premium paid by X corporation in both policies deductible?
Question 2 – Will the insurance proceeds be treated as income subject to tax by the corporation
and by the wife?

a. Yes to 1st and No to 2nd questions.
b. Yes to both questions.
c. No to 1st question and Yes to 2nd question.
d. No to both questions.

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Multiple Choice Questions CPA Reviewer in Taxation
17
. Who among the following is a non-resident alien?
a. An alien who comes to the Philippines for a definite purpose which in its nature may be promptly
accomplished.
b. An alien who comes to the Philippines for a definite purpose which in its nature would require an
extended stay.
c. An alien who has acquired residence in the Philippines.
d. An alien who lives in the Philippines with no definite intention as to his stay.
18
. An exemption provided by the law to take care of personal, living and family expenses of the taxpayer
and the amount of which is determined according to the status of the taxpayer are:
a. Optional standard deduction.
b. Personal exemption.
c. Additional exemption.
d. Special additional personal exemption.
19
. The personal exemption of the non-resident alien engaged in trade or business in the Philippines is
equal to that allowed by:
a. The income tax law of his country to a citizen of the Philippines not residing there.
b. The income tax law of his country to a citizen of the Philippines not residing there or the amount
provided by the NIRC to a citizen or resident, whichever is lower.
c. The National Internal Revenue Code to a citizen or resident.
d. The income tax law of his country allows to a citizen of the Philippines not residing there or the
amount provided by the NIRC to a citizen or resident alien whichever is higher.
20
. If an individual performs services for a creditor who in consideration thereof cancels the debt, the
cancellation of indebtedness may amount:
a. To a gift.
b. To a capital contribution.
c. To a donation inter vivos.
d. To a payment of income.
21
. Statement 1. A non-resident citizen is taxable on his income from within the Philippines.
Statement 2. A non-resident citizen is not taxable on his income from outside the Philippines.
Statement 3. A non-resident citizen is taxable on his income from within and outside the Philippines.
a. True, true, true.
b. False, false, false.
c. True, true, false.
d. False, false, true.
22
. The following are the general principles of income taxation:
a. A citizen of the Philippines residing therein is taxable on all income derived from sources within and
without the Philippines.
b. A nonresident citizen is taxable on income derived from sources within the Philippines.
c. An individual citizen of the Philippines who is working and deriving income from abroad as an
overseas contract worker is taxable only on income from sources within the Philippines.
d. An alien individual, whether a resident or not of the Philippines, is taxable only on income derived
from sources within the Philippines.
e. A domestic corporation is taxable on all income derived from sources within and outside the
Philippines.
f. A foreign corporation, whether engaged or not in business in the Philippines, is taxable only on
income derived from sources within the Philippines.

a. All the statements are true.
b. All the statements are false.
c. One of the statements is false.
d. Some of the statements are false.
23
. A citizen of the Philippines was a non-resident citizen in 2003. On May 15, 2004, he arrived in the
Philippines to reside permanently in the Philippines. His income for the year was:
A – From January 1, 2004 to May 14, 2004.
B – From May 15, 2004 to December 31, 2004.

Which of the following is wrong?
a. He is considered a resident citizen on his “B” income.
b. He is considered a non-resident citizen on his “A” income.
c. He is considered a resident citizen on his “A” and “B” income.
d. He is not taxable on his “A” income.

3

c. or becomes twenty-one years old within the year. Available only if the ratio of cost of sales does not exceed fifty-five per cent of gross sales or receipts from all sources. a. The minimum corporate income tax of a domestic or resident trading or manufacturing corporation is: a. d. Statement 1. 4 . true. 33%. c. Minimum corporate income tax. In the quarterly and annual returns of the corporation. d. false. An illegitimate child dependent upon the taxpayer is a unit of additional exemption. Which statement is wrong? The gross income tax: a. 2% of gross income. Applicable to non-resident corporation. d. Normal tax. First statement is correct while second statement is wrong. 15% of gross profit from sales. c. Which is it? The gross income tax on corporation is: a. c. he/his estate may claim personal exemption in full for such year. c.Multiple Choice Questions CPA Reviewer in Taxation 24 . 15% of gross income. Both statements are correct. false. 2% of gross receipts. b. One of the following statements is correct. 26 . d. False. Statement 1. May begin only beginning 2000. Which is it? The minimum corporate income tax of a corporation is computed: a. the taxpayer may still claim additional exemption. Statement 2. 32 . b. or his spouse dies during the year. b. c. b. Stock transaction tax. Which statement is wrong? The gross income tax of the corporation is: a. Statement 2. Is optional to a qualified corporation. False. 32%. 15% of gross receipts. b. Is always computed to compare with the normal income tax and minimum corporate income tax. 30 . 15% of gross receipts. 2% of gross income. If a taxpayer marries or has dependents during the year. 25 . In all the taxable years of operations of the corporation. The minimum corporate income tax of a domestic or resident service corporation is: a. d. 28 . 15% of gross income. 5% of gross sales. First statement is wrong while second statement is correct. 31 . 30%. c. True. In the annual income tax return only of the corporation. a. 34%. b. b. b. The choice shall be irrevocable for three consecutive years that the corporation is qualified under the scheme. One of the following is wrong. b. The normal tax of an ordinary corporation effective January 1. d. d. In the quarterly returns only of the corporation. 29 . Which of the following is not an income tax on corporation? a. A dependent who marries within the year or who becomes gainfully employed during the year is still a dependent with additional exemption for the year. Applicable to domestic corporations. Gross income tax. 2000 is: a. Not applicable to resident corporation. c. 15% of gross income. true. d. If a dependent child dies within the year. or dies during the year. 27 . d. Both statements are wrong. True. b. 33 . 15% of gross sales. c. 15% of gross sales. d. c.

Proceeds of accident or health insurance. d. except one. d. Proceeds of crop insurance. are not subject to the improperly accumulated earnings tax. Separation pay received by a 50-year old employee due to the retrenchment program of the employer. Which is the exception?: a. As a general rule. Award for being a model employee. retiring from employment for the first time in his life. Social security benefit received by a balikbayan from employer abroad at the age of 35. A general partnership in trade is not taxable as a corporation. except one. c. GSIS or SSS contributions. Which of the following is taxable? a. Which of the following items that reduce salaries of employees is not an exclusions from gross income? a. The corporation permits its profits to accumulate beyond the reasonable needs of the business. c. c. Which of the following is taxable? a. Prize won in as essay contest. Is based on a statutory formula for improperly accumulated income. 35 . b. b. 43 . Publicly-held corporations. Retirement pay received from a benefit plan registered with the Bureau of Internal Revenue where at the time the employee retired he was 55 years of age. Which of the following is taxable? a. Interest on government bonds. 40 . d. The improperly accumulated earnings tax imposed on corporations: a. 38 . SSS and GSIS benefit. The following. Agricultural land inherited. One of the following statements is wrong. b. proceeds of insurance are not taxable because they only constitute a return of capital (of what was lost). 37 . Service enterprises. b. Mutual fund company. Which of the following statements is wrong? a. Prize won as member mythical team in the PBA. IOU’s. Identify the exception: a. b. d. c. d. c. c. General professional partnership. The Nobel prize. Proceeds of life insurance. b. Labor union dues. d. give rise to the presumption that a corporation is improperly accumulating profits. d. and was employed with the employer from whom retiring for 6 years prior to retirement. b. Regional operating headquarters of multi national company. b. 42 . d. A consortium for energy operations pursuant to an operating consortium agreement under a service contract with the government is not taxable as a corporation. Identify. Philippine Charity Sweepstakes winnings. Pagibig contributions. c. Is calculated to force corporations to pay out dividends. Cash received as gift. All. A co-ownership where the activities of the co-owners are limited to the preservation of property and collection of income from the property is not taxable as a corporation. b. Banks and other nonbank financial intermediaries. 39 . d. b. Insurance companies. General partnership in trade. A joint venture for undertaking construction projects is not taxable as a corporation. Which is the exception? a. c. c. The corporation is an investment company. c. of the following.Multiple Choice Questions CPA Reviewer in Taxation 34 . The corporation is a mere holding company. Which of the following is not treated as a corporation? a. d. 41 . 36 . Is computed on improperly accumulated income over several years. 5 . Proceeds of property insurance. Is based on the net income per books after income tax. The corporation is a service enterprise.

c. b. d. Lotto winning. true. Itemized deductions from gross income should be duly supported by vouchers or receipts. In a total loss due to casualty. Only business expenses may be deducted from the gross income of taxpayers. a. Statement 1. In a merger or consolidation. First statement is false while second statement is true. true. 46 .000 of an employee who is a member of the board of directors of a corporation. Statement 2. b. In a wash sale. Refund of percentage tax. Both statements are false. First statement is true while second statement is false. b. false. Bad debt is a deduction from the gross income when the account is written off. the measure of loss is the book value of the asset reduced by any form of indemnity. a. Interest on long-term deposit on banks of individuals. or the cost to restore the property to its normal operating condition. Statement 4. The first statement is true while the second statement is false. It is of property owned by the taxpayer. Statement 1 is wrong while statement 2 is correct. false. 48 . c. b. 45 . 52 . loss is not deductible. Gain on sale of 10-year bond. true. 6 . storm. false. Interest paid or incurred in the acquisition of fixed assets may be capitalized to the asset account. true. Statement 3. Statement 2. True. Bad debt is an expense in the books of account when a provision is made for it. Refund of donor’s tax. Both statements are true. Honorarium of P20. Both statements are false. c. Both statements are correct. Salaries of P20.000 of an employee. 47 . false. whether used in business or not. Statement 1 is correct while statement 2 is wrong. c. c. An individual on the cash basis of accounting shall deduct interest paid in advance in the year that the principal is paid. Refund of estate tax. Refund of Philippine income tax. whichever is lower. One of the following is not correct for deductibility of losses from gross income: a. True. c.000. Statement 1. Which of the following is taxable? a. true. 51 . b. c. robbery. Both statements are true. Statement 2. d. true. or embezzlement. d. True. Which of the following tax refunds constitutes income? a. Which of the following is not gross compensation income? a. b. or transfer to a controlled corporation. In a partial loss due to casualty. True. a. It must arise from fire.000 of an employee. d. the measure of loss is the cost of the property. Statement 1. b. A net operating loss which had not previously been deducted from gross income shall be carried over as a deduction only in the next year immediately following the year of such loss. 50 . Statement 1. d.000 of a partner of a general partnership in trade. false. Both statements are wrong. Bonus of P20. False. d. False. d. False. theft. d. A declaration of loss by casualty should be filed with the Bureau of Internal Revenue. true. Salary of P20. b. Statement 2. Statement 1. false. Prize exceeding P10. c. 49 . reduced by any form of indemnity. c. a.Multiple Choice Questions CPA Reviewer in Taxation 44 . b. loss is not deductible. Statement 2. true. d. It must not be compensated by insurance or any form of indemnity. False. The first statement is false while the second statement is true. a. false. false. A net operating loss is the excess of allowable deductions over the gross income from business for a taxable year. or other casualty.

c. To a corporation. d. Contributions of canned goods to student organizations during the Christmas season for distribution to Muntinglupa inmates are deductible from gross income. When related to the acquisition and/or improvement of land and building.400 a year per family. If a trading concern. c. In the case of married persons. To the individual taking the itemized deduction from gross income. b. Only if the taxpayer is taking itemized deduction from gross income. b. b. Contributions by the employer to a pension trust for past service cost is deductible in full in year that the employer made the contributions. Which statement is wrong? The rule that capital losses are deductible only to the extent of capital gains is applicable: a. d. Choose the correct and best answer: For purposes of the Optional Standard Deduction of an individual (other than non- resident alien) gross income means: a. true. c. Means gross profit from sales. Allowed a citizen with business or professional income only. b. if he is on the cash basis of accounting. Imposed on the employee. plus all other items of gross income. The deduction of a corporation for contributions subject to limitation should not exceed five percent (5%) of its taxable income from business or trade before deduction for contributions. b. trade or profession before deduction for contributions. b. d. may be treated as a deferred expense which may be amortized. 7 . Imposed on the employer. Allowed a citizen with a gross compensation only. c. true. 60 . d. a. Withheld at source. Deprecation expense can be a deduction for both tangible and intangible property with limited useful life. The deduction of an individual for contribution subject to limitation should not exceed ten percent (10%) of his taxable income from business. 59 . The cost of leasehold improvements shall be deductible by the lessee by spreading the cost of the improvements over the life of the improvements or remaining term of the lease. b. True. false. Which statement is wrong/ research and development costs: a. b. Which statement is not correct? a. False. Statement 2. Not to exceed P2. 54 . True. 55 . If not related to land and building. To an individual. can be claimed by either spouse. c. The Optional Standard Deduction is ten percent (10%) of the gross income.Multiple Choice Questions CPA Reviewer in Taxation 53 . may be treated as an outright deduction. If a service concern. Not to exceed P200 per month. d. true. false. d. Allowed a citizen with mixed income. Not allowed if the family income exceeds P250. True. or gross receipts or revenues less direct cost of services. Includes the net capital gain of an individual. c. 56 . d. a. False. c. Which statement is wrong? Deduction for premiums on hospitalization and health insurance is: a. 57 . Deductible by the employer. d. whichever period is shorter. If not related to land and building. c. Which statement is wrong? The deduction for premiums on hospitalization and health insurance is: a. gross profit from sales. 61 .000. b. 58 . Cannot be deducted because it has unlimited life. True. Statement 1. Statement 1. False. d. Contributions or donations given directly to individuals cannot be deducted from gross income. true. must be capitalized. To the individual taking the Optional Standard Deduction. Statement 2. false. c. Which statement is wrong? The fringe benefit tax is: a. gross receipts lee direct cost of services. false. Contributions to media in its fund drive for the relief of the calamity victims are deductible from gross income. False.

Interest expense between a corporation and the controlling individual. The fringe benefit tax is withheld by the employer. 68 . Available to a registered general partnership in business in the Philippines. Non-deductible bad debts on transaction between members of the family. b. Which of the following losses is deductible? a. Which statement is wrong? The net operating loss carry-over (NOLCO) is: a. d. c. Available to an individual in business in the Philippines. 65 . d. d. b. 63 . 70 . c. 67 .Multiple Choice Questions CPA Reviewer in Taxation 62 . but the second statement is wrong. Statement 1. The amount deductible by the employer from his/its gross income. 71 . Both statements are true. Housing. Loss on wash sale. d. d. b. ancestors and lineal descendants. The first statement is false while second statement is true. c. A fringe benefit which is subject to the fringe benefit tax is taxable income of the employee. May be treated as a deferred expense to be amortized over a period of not less than sixty months from the date benefit from expenditure is derived. The grossed-up monetary value of the fringe benefit. b. First statement is wrong. Which interest expense can be deducted from gross income? a. Expense account. whether by whole or half blood. Statement 1: A corporation cannot deduct a loss arising from a sale between the corporation and the controlling individual stockholders. 8 . insurance and hospitalization benefit plans. None of the above. The family of an individual shall include his brothers and sisters. d. Loss on merger. c. a. b. First statement is true while second statement is false. Vehicle of any kind. Loss on a transfer of property to a controlled corporation solely for stock. The fringe benefit tax is deductible from the gross income of the employer. Loss on a transfer of property to a corporation solely stock resulting in control. Statement 2. a. Deductible premiums on hospitalization and health insurance of the family. 66 . Available to a domestic corporation. Interest expense on money borrowed to finance petroleum operations. May be claimed as an outright deduction from gross income. Non-deductible interest expense between members of the family. Not available to a general professional partnership in the Philippines. Which statement is wrong? The amount on which the fringe benefit tax rate is applied is: a. In which of the following does the concept not apply? a. May be treated as a deferred expense to be amortized over the period which will benefit from the expenditure. b. d. c. a. Both statements are false. c. First statement is correct. b. c. b. The first statement is true while second statement is false. Statement 2: A corporation cannot deduct a loss arising from a sale between the corporation and the controlling parent corporation. c. d. spouse. but the second statement is correct. The monetary value of the fringe benefit. A fringe benefit which is not subject to the fringe benefit tax is taxable income of the employee. d. Non-deductible loss from sales or exchange of property between members of the family. On land and building acquired for research and development purposes is not deductible as research and development cost. Contributions of the employer for the benefit of the employee to retirement. Which of the following fringe benefit is not subject to the fringe benefits tax? a. c. Statement 1. 64 . Both statements are correct. Interest expense on money borrowed to buy government bonds. Statement 2. First statement is false while second statement is true. b. b. Both statements are true. d. Reflected in the books of accounts in the two account of fringe benefits expense and fringe benefit tax expense. Both statements are wrong. Both statements are false. 69 . Which statement wrong? Research and development cost: a. c.

d. b. 78 . Income from a general professional partnership is constructively received by a partner when his share in the net income is credited to his capital account. Any distribution of dividends made to shareholders of a corporation shall be deemed to have been made from the most recently accumulated earnings or surplus. c. c. For domestic corporations. d. Which of the following statements is wrong? a. Regardless of the ratio of initial payments to the selling price. 80 . c. Advance rental received. In the year that the principal is paid. d. c. Installment sales where the initial payments do not exceed twenty-five percent of the selling price. None of the above. Income which is constructively received is already taxable income is a rule under this method of accounting: a. 76 . 79 . may be amortized over a period of more than. There is no deduction for bad debt when there is a surety for the debtor against whom collection may be enforced. whichever is lower. The Commissioner of Internal Revenue may prohibit the method of inventory valuation used in the books even if such method used conforms to accounting rules. Do not exceed 25% of the selling price. Accumulated profits of any year distributed to shareholder of a corporation shall be considered dividend subject to final tax on the distributee in the year received. Income from a taxable partnership is constructively received by a partner in the same taxable year that the partnership determined its net income after tax. Exceed 25% of the selling price. 73 . 9 . d. prepaid interest on an indebtedness is deductible: a. A deduction for uncollectible account is available to a taxpayer whether he is on the cash or accrual method of accounting. is deductible in the year that payment is made. c. Which statement is wrong? Contributions made by an employer to a pension trust: a. shall be allowed only if the mine is located in the Philippines. A deduction for bad debt is not available when a provision for it is made. b. Cash method. d. b. Which statement is wrong? a. d. b. b. For foreign corporations engaged in doing business in the Philippines is allowed only if the mine is located in the Philippines. Installment method of reporting income is available to him on a sale of property if the initial payments on the sale: a. c. 77 . Installment sales where the initial payments exceed twenty-five percent of the selling price. Is separate from deduction for depreciation of building in the mine site. c. One of the following statements is wrong. but not less than ten years. b. Which statement is not correct? Deduction for depletion: a. Long-term contracts. The base stock method of valuing inventory is not recognized for income tax purposes. d. For a lump sum payment to cover past service cost. b. b. is allowable as deduction beginning with the year the payment was made. 74 . Installment method. For lump sum payment to cover past service cost. The taxpayer is not a dealer of personal property regularly selling on installment. Which is wrong? Deferred recognition of income is allowed in: a. c. Is allowed on wasting assets only. A deduction for bad debt is available only when a write off is made. In the year that the interest is prepaid. For lump sum payment to cover past service cost is allowable as deduction amortized for period of ten years. c. b. 75 .Multiple Choice Questions CPA Reviewer in Taxation 72 . d. For present service cost. For an individual on the cash basis of accounting. Second hand and odd or broken lots goods in the inventory should be valued at cost or market. For the portion expired corresponding to the current accounting period. d. Do not exceed 25% of the contract price. The Commissioner of Internal Revenue may determine the taxable income of a taxpayer by using standards developed from other taxpayers. Accrual method. Identify: a. Deferred payment method.

The Commissioner of Internal Revenue can. the initial payments on the sale: a. b. Statement 1. determined by the partnership under the accrual method. He can consolidate his share in the net income of the partnership. marketability or price movements) is such that inventory gains should be considered realized for tax purposes. 86 . Any of the above. c. Both statements are correct. On the accrual method. On the cash method. Which is wrong? The net worth-expenditure method of investigation which is used by the Bureau of Internal Revenue to determine taxable income that was fraudulently concealed by an individual is based on: a. 83 . the second statement is false. If a general professional partnership is on the accrual method of accounting. Statement 1. Cost. and a partner. second statement is wrong. there being a requirement of the law on the ratio of initial payments to the selling price. d. c. Both statements are wrong. with his own income determined under the cash method.Multiple Choice Questions CPA Reviewer in Taxation 81 . b. Statement 2. unless the taxpayer proves otherwise. An individual making a casual sales or disposition of property involving deferred payment. c. if he makes a finding that the nature of stock on hand (e. 85 . First statement is correct. He must convert his own income into accrual method before consolidating it with his own income from the partnership under the accrual method. The finding of the Bureau of Internal Revenue of undeclared income is presumed correct. d. 10 . First statement is wrong. 82 . The statutory authority of the Commissioner of Internal Revenue to have the income of a taxpayer computed under such method as in his opinion clearly reflects the income. He must convert his income from the partnership into cash method before consolidating it with his own income on the cash method. b. The statutory authority of the Commissioner of Internal Revenue to promulgate rules and regulations.. c. unexplained increase in net worth is attribute to undeclared income. 87 . The accrual method of accounting is required of trading. The first statement is false. a. c. whichever is lower. is on the cash method of accounting. All of the above. Do not exceed 25% of the selling price. b. He does not have to report his income from the partnership because the partnership is exempt from income tax. Under the net worth-expenditure method of investigation. manufacturing and service enterprises. Regardless of the ratio of initial payments to the selling price. d. Both statements are true. Both statements are false. On the installment method. d. 84 . d. on his own transactions. The statutory authority of the Commissioner of the Internal Revenue to determine the taxable income of a taxpayer from the best evidence obtainable. Deferred payment method of reporting income on an installment sale is available to a taxpayer if. scarcity. Which method of inventory valuation is not recognized for income tax purposes? a. a. d. The underdeclaration of income is presumed to be fraudulent and the assessment of the tax by the Bureau of Internal Revenue will imposed a surcharge of fifty percent. liquidity. in the partner’s determination of his taxable income for a year: a.g. Cost or market. d. not in the course of trade or business. c. second statement is correct. the second statement is true. Farm price method. b. c. require a change in the inventory valuation method of a taxpayer. The first statement is true. must report his income: a. Statement 2. b. Do not exceed 25% of the contract price. Base stock method. Exceed 25% of the selling price. b.

b. There can be an accounting period of less than twelve months. 90 . so as to clearly reflect the income of the taxpayers. There are two accounting periods. sales made by the manufacturing corporation to the marketing corporation. The first statement is wrong. Under the rule of “piercing the veil of corporate fiction”. deductions for expenses shall be allowed in the year that the income from the crop is realized.Multiple Choice Questions CPA Reviewer in Taxation 88 . c. Statement 2. There cannot be an accounting period of more than twelve months. under which. A change in the method of accounting requires a prior approval of the Commissioner of Internal Revenue. 93 . d. the Commissioner of Internal Revenue may make an allocation of income and expenses among them so as to clearly reflect the income of each enterprise or corporations. may be considered by the Bureau of Internal Revenue as not reflective of correct selling price. d. one. d. a. a. Cannot be done by the Bureau of Internal revenue. c. a. Statement 1. interim and new) are filed. Permanent difference is an item of revenue in the books of accounts but which is not a taxable income. b. d. Both statements are wrong. Timing difference is an item of revenue in the books of accounts in one accounting period but which is taxable income in another accounting period. c. Both statements are wrong. while the second statement is correct. Statement 2. Statement 1. 11 . but second statement is wrong. wile second statement is correct. c. Both statements are correct. Which statement is wrong? In income tax allocation: a. a one-year period. Under the provision of the National Internal Revenue Code which authorizes the Commissioner of Internal revenue to determine the correct taxable income from the best evidence obtainable. and the other. c. First statement is wrong. Which is correct? When it takes more than one year from the time of planting to the time of harvesting and selling. it is legal for the Commissioner of Internal revenue to determine the revenue and gross income of a taxpayer based on industry standards developed by the Bureau of Internal Revenue from an industry study. b. Under the provision of the National Internal Revenue Code which authorizes the Commissioner of Internal Revenue to allocate revenues and expenses of corporations controlled by the same interests. while the second statement is wrong. as recorded. Both statements are correct. Income from long-term contracts must be reported only on the percentage of completion method of accounting. in the books of account. First statement is correct. Both statements are correct. This is still an accounting period of twelve months. In the interest of determining the correct taxable income. 92 . Both statements are wrong. b. Permanent difference is an item of taxable income which is not revenue in the books of accounts. This is an accounting period of more than twelve months. Statement 1. 94 . a. There is no definite accounting period. c. Where different enterprises or corporation are owned by the same taxpayer. a. Which statement is wrong? When a taxpayer controls a manufacturing corporation and a marketing corporation. One of the following is correct: a. Statement 2. but second statement is correct. 89 . 91 . while second statement is wrong. b. the income from the sales must be reported on the accrual method. A change in accounting period does not require prior approval of the Commissioner of Internal Revenue as long as the necessary income tax returns for the different accounting periods (old. c. income may be reported under the crop year method. Income from long-term contracts may be reported on the completed contracts method of accounting. a less-than-one-year accounting period. Timing difference is an item of expense in one accounting period and is not a deduction for income tax purposes. d. Where in a deferred payment sales the initial payments exceed twenty-five percent of he selling price. Income from deferred payment sales may not be reported on the accrual method. d. d. b. First statement is correct. The first statement is correct. First statement is wrong. b.

or from property. d. c. If the child is minor and the income was derived from property inherited by the child. with a net income or net loss. Statement 2: The income tax return of husband and wife must be signed by both spouses. Statement 2. Income from goods produced in whole or in part in the Philippines and sold in a foreign country. First statement is correct. where the estate tax was paid. Income tax return for the period when he was under disability shall be required only when becomes able. b. while second statement is correct.Multiple Choice Questions CPA Reviewer in Taxation 95 . Statement 1 is wrong. c. Needs to file an information return and pay the income tax. where the donor’s tax was paid. d. filed by the guardian. Because the net income of the partnership will be traced into the income tax return of the partners. None of the above. Income of a telegraph company with transmission from the Philippines to points abroad. Both statements are correct. Statement 1: The income tax return of husband and wife may be signed by one of the spouses only designated by them as the income tax return filer. Who of the following need not file income tax return? a. Both statements ate wrong. 98 . b. For statistical purposes. is under the sole responsibility of the agent or authorized representative. b. The income tax return of a parent includes the income of an unmarried child: a. organized and operated for charitable purposes) which did not file its article of incorporation and by-laws with the Bureau of Internal Revenue: a. 96 . c. b. The income tax return by an agent or authorized representative of the taxpayer. A taxable partnership. d. A general professional partnership. The income tax return of a person under disability. d. The income tax return of a receiver of a corporation is the income tax return of the corporation. c. but Statement 2 is correct. First statement is wrong. Income of an international shipping corporation with vessels touching Philippine ports. Is required to file an income tax return and paid the income tax. Both statements are wrong. 99 . d. a. c. is an income tax return of the child.000 for the preceding taxable year is a large taxpayer. Is required to file an income tax return although not required to pay the income tax. 100 . An employee with a gross compensation income of P48.000. d. When an individual taxpayer is under temporary disability: a. If the child is minor and the income was derived from property received as gift from a living parent. the corporation is still the taxpayer until the close of the liquidation. d. Both statements are correct. None of the above statements are correct. from personal services. c. Statement 1. b.. d. unmarried child. filed by the guardian of the child. (e. A corporation which is included in exempt corporation under Section 30 of the National Internal Revenue Code. 97 . A taxable corporation. c. No income tax return is required of him. where the donor’s tax was not paid. The income tax of a minor. c. Because all income earners are required to file income tax return. 102 .500 when the withholding tax by an employee was correct. A general professional partnership is exempt from income tax. 12 . b. b. if with a net loss. Which statement is wrong: a.g. b. If the child was minor and the income was derived from property received as gift from the living parent. Which income from sources partly within and partly outside the Philippines is allocated on the time basis? a. is an income tax return of the child. a. as indicated in the return. If the child is minor and the income was derived from his labor. 103 . c. b. if with a net loss. while second statement is wrong. but is required to file an income tax return: a. A corporation with an annual income tax paid or payable of at least P1. When a corporation is dissolve and is under receivership. 101 . Needs to file only an information return and will not be required to pay the income tax. d. Income from personal services performed in part in the Philippines and in part abroad. Income tax return is required to be filed for him by his guardian. Statement 1 is correct. or vice-versa. but Statement 2 is wrong. from services.

An estate which is under administration. c. Both statements are wrong. 106 . Value-added tax. c. A donation on which the donor’s tax was not paid is not a valid donation. Dividend received from a foreign corporation shall be subject to withholding income tax if: a. 108 . All of the above. b. Withholding income tax on passive income on passive income. Statement 2. He need not have records of gross income. A choice by an individual of the Optional Standard Deductions means that: a. d. b. notwithstanding withholding income tax during the year on his compensation income. d. Balance Sheet and Income Statement certified by an independent Certified Public Accountant if the gross receipts from business or profession exceed P150. 13 . All of the above. In all cases where the foreign corporation had business in the Philippines.000. None of the above. Expanded withholding income tax. d. Which of the following is a taxpayer required to file an income tax return? a. He need not keep books of accounts. is required to file an income tax return at the end of the year. d. c. d. c. c. May still pay the income tax in one lump sum even if it exceeds P2.000 in any one quarter. a. after credit for withholding income tax exceeds P2. 111 . Statement of Net Worth and Operations. he: a. d. b. Which of the following withholding income tax should be remitted to the Bureau of Internal Revenue as a final tax? a. b. 107 . None of the above. c. exceeds P2.] c. In all cases where the foreign corporation engaged in business in the Philippines had more than fifty percent of its world gross income for the three-year period preceding the declaration of dividend derived from Philippine sources. Withholding income tax under the Expanded Withholding Tax System. A trust where the fiduciary may accumulate or distribute the income of the trust. b. b. All of the above.000 in any one quarter. The first statement is correct while the second statement is wrong. 110 . b. b. 109 . Which is not a creditable withholding income tax? a.000 in any one quarter. d. May pay the income tax into two installments if the income tax on his taxable income for the year. at his discretion. Withholding income tax on certain passive income. Balance Sheet and Income Statement. May credit the income tax withheld against the first installment tax due. b. One of the following is not an excise tax in the Tax Code. Title to the donated real property cannot be transferred to the donee in the Register Deeds unless the donor’s tax on the donation had been paid. One of the following statements is correct. The first statement is wrong while the second statement is correct. His choice can still be changed by filing an amended return. c. but do not exceed P150. Withholding income tax at source. Statement 1. 105 . before credit for withholding income tax. His income tax return need not be accompanied by financial statements. if the gross receipts from business or profession exceed P50. 112 . May pay the income tax into two installments if the income tax on his taxable income for the year.000.000. d. d. c. Withholding income tax and compensation income. In all cases where the foreign corporation engaged in business in the Philippines had more than eighty-five percent of its world gross income for the three-year preceding the declaration of dividend derived from Philippine sources.000 and credit the withholding income tax against it. if the gross receipts from business or profession do not exceed P50. Both statements are correct. A trust where the fiduciary must accumulate the income of the trust. Income tax. a. Which statement is wrong? When an individual.Multiple Choice Questions CPA Reviewer in Taxation 104 . Community tax. Which is correct? The income tax return shall be accompanied by the following: a. Percentage tax.

115 . school canteen 36. The proceeds of the loan were spent in the construction of a new six-room building. a. 2004: Tuition fees P 9. the books of account should be audited and examined by independent Certified Public Accountants and their income tax returns accompanied with certified financial statements.000.000.000. a non-resident alien stockholder.200 Net income.000 Expenses: Payroll and administrative salary 1. the school secured a loan from a bank in the amount of P750. b. Where the gross quarterly sales.500.000 14. May be in language other than native.000 journal and ledger. P30. How much is the income tax due from the Central Plain University. P105. Answer not given. c.000. Where the quarterly gross sales. Inc. or their equivalent. Araki.000 P12.000 How much of the dividend income received by Mr. P101. d.000 bank loan 82.000 Income of school canteen 180. for the fiscal year ended May 31. c. Statement 1. receipts or output do not exceed P50.000.800 Dividends 15.000 Interest on time deposits 45. First statement is wrong but second statement is correct. b.Multiple Choice Questions CPA Reviewer in Taxation 113 . It submitted the following data for the fiscal year ending April 30.000.000 P14. P 26.000. earnings or output exceed P150. earnings.000 Net income. b.935.000.000 Interests on bank deposit 70. a private educational institution.000. Zero.685. a simplified set of bookkeeping records. c. for the fiscal year ended May. d. earnings. P150.. Statement 2: In the case of the taxpayers whose gross sales. 117 . d.843. d. The gross income of the foreign corporation within and without the Philippines for three years preceding 2004 are as follows: Sources of Income 2001 2002 2003 From within the Philippines P16.000.100 Income from rents 60.000 Income from book store 350. 2003: Income: Miscellaneous fees P 362. book store 24. English or Spanish as long as it is in the language of the taxpayer.000 in 2004 from a foreign corporation doing business in the Philippines.000 16. Mr. Both answers are correct. The following information are from the records of the Central Plain University. Inc.200. 116 . 114 . b. c. earnings or receipts in any quarter exceed P150. as follows: a. the books shall be examined and audited by independent Certified Public Accountants. Both answers are wrong.452.600 Tuition fees 2. new six-room building 37. Books of accounts shall be preserved for a period beginning from the last entry in such books until the expiration of the period of assessment (on transactions recorded there) that may be made by the Bureau of Internal Revenue.100 Depreciation. First statement is correct but second statement is wrong.000 From without the Philippines 18.000. is a private educational institution recognized by the Government.450 Other operating expenses 762.935. P270. 31.000 Miscellaneous fees 1.500 In the first month of the fiscal year.000 14 .330 Interest on P750.000. The West Central College.000 Cash dividends from domestic corporation 80. received a dividend income of P300. Where the quarterly gross sales. Inc. Araki is considered income from sources within the Philippines? a.685. One of the following statements is wrong: books of accounts are required to be kept. 2003? a. receipts or output exceed P50.

Inc. b. 121 . Santiago purchased a life annuity for P100. Its estimated useful life is 16 years with scrap value of P70. 2004 replacement of some worn- out parts of the building costing P50. d. P53. Answer not given.000.000.800. d. Monte in 2004: a. is a private educational institution recognized by the Government.750. c.000 which will pay him P10.000 during the year. d. 119 .750.000.000. P62. he received P70.794.600. P20. 2004: Tuition fees P12.000 Other expenditures for improvement of school facilities: Construction of additional classrooms 1. all personnel 8. P27. P780.000 The income tax still payable by the Central Luzon University. 2004: a. P49. P40. 118 . c. b. c.000 as settlement from the insurance company which insured the car owned by the other party involved in the accident.000. The life expectancy of Mr. The allowable deduction for depreciation for the year 2004 is: a. Zero.000.000 Furniture and equipment of library 400.000. 1999 with a cost of P570. Answer not given.00. In January.300. b.000.000. c. Monte was injured in a vehicular accident in 2001.82. b. Santiago be able to exclude from his gross income? a.000. Mrs. d.000. d. c. Her father purchased it in 1990 for P100.580. the building was appraised with a fair market value of P770.500.000 Repayment of loan 500. d.000. P43. Which of the following will Mr.000 Miscellaneous fees 2. After the repairs.000.Multiple Choice Questions CPA Reviewer in Taxation Salary.000.000 a year. The following are financial data for its fiscal year ending April 30.000 Other operating expenses 3. A store building was constructed on January 2.150.45. 122 . In 2004. P100. b. P70.100. Answer not given. P26. Evangelista transfer this parcel of land to her wholly owned corporation in exchange for shares of stocks of said corporation worth P450. Mr. P50. P223. c.000 after 16 years.000 Other operating expenses 2.000 and legal fees of P10.000 Construction of classroom building 2.000 The income tax due for the fiscal year ending April 30. P35.000 Salary and bonus. He incurred and paid medical expenses of P20. P10. 120 . Evangelista’s taxable gain is: a.000 was spent. The Central Luzon University. for the year ended April 30. P150. Zero. If Mrs. 15 .000. Inc. Mrs.431.000. P61.000 which she inherited from her father in 2003 when it was worth P300. P241.000 Rent income from school canteen 120.000. Evangelista owns a parcel of land worth P500. allowances and bonus 6. Santiago is 12 years.000 Quarterly (three quarters) income tax paid 36.400. 2004: a. From the above payments and transactions. b.000 Interest on bank deposits 15. the amount of taxable income to Mr.000.000. Mr. Answer not given.

Pagibig contributions. net of P7. income tax still due at the end of the year is: a. c. Assuming Mr. P40. he received a 50% stock dividend.34.875.000. P8. P56. 2004.00 per share. the annual income of Mr. 2004. b.000.000 a year. Using the first-in-first-out method. P200.000. a.000. the building will be owned by Mr.000. 15. 2003 400 P 100. the income of Mr.666. The contract provides that Mr.000 and has a useful life of 30 years. The term of the contract of lease is 15 years.015.333. Gomez. 15. c. c. On May 31. Rivera leased his land to Mr. c. Santos sold 1. Assuming the contract of lease was terminated after the tenth (10 th) year or at the beginning of the eleventh (11th) year due to the fault of the lessee.000.Multiple Choice Questions CPA Reviewer in Taxation 123 . b.00 P40.00 2 Jan.666.000 The income tax withheld on compensation income: a.000.000. c.333. d.000. P14.66.000. Philhealth. 124 . the lessor. and labor union dues P88. Franco at an annual rental of P40. P26. 16 . P20. P400. Mr. In question 126.000.000 Gain on sale of asset 10.00 36. P76. P9. the building was constructed at a total cost of P400. Mr.640.66. Gomez.000.00 On June 30.34. Lot Date No. d. d. his yearly income is: a.666.00 4 May. married. P11.203.000. The terms of the contract of lease is for fifteen (15) years and the rental fee is P36. Mr.000 Thirteen month pay 8. Santos purchased common stock of ABC Corporation. P7. 125 . Pascual bought a 200 square meter land at a cost of P500. P133. Rivera will spread his income over the term of the contract of lease. b. d. Pascual is: a. the lessee. P173. for income tax purposes. 2004 200 140. 2004 300 120. Franco will construct a building which will belong to the lessor at the end of the term of the lease or at the termination of the lease.000 Allowances 16.975. 127 . On different dates as listed below. Mr.900. c. if the income tax was withheld correctly by the employer.00 15.000 and has an estimated useful life of 20 years which is the basis of a straight-line method of depreciation. Santos is: a.000. P(26. b. He had the following data on income and expenses: Salaries. B. P2. The building was constructed at a cost of P600.00 3 Mar. Rivera. Answer not given. P66. Mr. 15. He leased the land to Mr. The contract of lease provides that Mr.600).938. P46. Purchased Shares Per Share Cost 1 Oct.000 SSS. Pascual will spread his income over the term of the contract of lease. 15. P31.400 shares at P100. is a citizen and resident of the Philippines. 126 . b. will construct a building and at the end of the term of the contract. A Pascual in the eleventh (11 th) year is. P2. d.2004 100 150.000. b. P28. of Cost Total No.66. P40.00 28. Assuming that Mr. the gain or (loss) of Mr.

& Mrs. 133 . net income of a 10% withholding tax P180. Concepcion: a.500. b. P82. P108.200. c.000 Interest on Philippine currency bank deposit 3.000. P100. Mr. 130 . In Question 128.000.65 Expenses.000.000.000.304.000.000 10. Concepcion is: a.600.000 120. the taxable income before personal exemption of Mrs. had the following data for a taxable year: Gross income. 134 . 128 . A married. P4.000.000. 131 .000. Philippines P380. P68. P3.150. Concepcion: a.000. 129 .000.Multiple Choice Questions CPA Reviewer in Taxation d.150. In Question 128.000 1. P59.600. P54. P63.03 17 .000 2.000 Interest on notes receivable 2. P108. the taxable income after personal exemption of Mrs.900. c.000. P91.000 Income tax withheld on rent at 5% 2. a citizen and resident of the Philippines. d. P73.269.000 Capital gain on sale directly to buyer at P280. P73.28 Gross income. b.000 of shares of domestic corporation 5. a.000. P75. P124. Conception living with the spouses. P 8.000. d. the taxable income after personal exemption of Mr.000 Interest on government bonds 5.000. 132 .000 Dividend from domestic corporation 10. Mr.000 Capital gain on sale directly to buyer at P2.000 Capital loss thru the Philippine Stock exchange at P60. In Question 128. d.400 Income tax withheld on professional fees at 10% 20. Dawn Sese- Conception. had the following data for 2004: Mr.000 of land in the Philippines 300. Gross income from business P220. with the mother of Mrs. c. P68.000. P91. the final tax paid on passive income within the year: a. d. Richard Conception. c. P92. business/profession 150. c. In Question 128. the taxable income before personal exemption of Mr. b. P73.000. United States 255. married to Mrs.000. b. P1. b.000 Gross income from profession. In Question 128. Philippines 194. d.000. d. P2.000 of shares of domestic corporation 80. P105.000 The capital gain taxes paid within the year. b. P2. Mrs.000 Expenses.000 Rent income from land and building P48. P80. c.000 8.600. Mr. Concepcion: a.

600.25. c.331. If in Question 138. If in Question 134. P216. P100. 140 . P216.51. the taxable income: a.335. 139 .000. in its first year of operations.Multiple Choice Questions CPA Reviewer in Taxation Expenses. b.000 Expenses 200.000 The taxable income. b. c. 136 . A domestic corporation.000. d. P200. 141 .331. c. P154. b.000 200. if domestic corporation and the data are on business. the taxpayer was a non-resident alien not engaged in business in the Philippines who is married. P200.25. the taxable income is: a. c.000.387. P300. P20. P154. the taxpayer was a citizen of the Philippines with residence in the United States who is married. 138 .000. P380.600.25.000. the taxpayer is a resident corporation.25.000. and the income and expenses are on isolated transaction.387. P340.331. had the following data: Sales P2.248.000 Business expenses 950. c.000.000. P1. 135 .000. If in Question 138.387. d. United States 193.000. P216.000 P300. the taxable income is: a. c.331. P200. his taxable income is: a.51.39 If the taxpayer is a resident citizen of the Philippines who is married.000. P216. P154. d. and the data are on business. b. P154.387. P100.51. b. P154.331.000. b.331. P300. d. P17.000. If in Question 134. P400. d. P154. d.25. b. P186.000. P216. P400. the taxpayer was a non-resident alien engaged in business in the Philippines who is married and the law of his country allows full reciprocity on personal exemption. the taxable income is: a. P154. c. A corporation. P100.331. the taxable income is: a. in its fifth year of operations in 2002. is: a. d.000 The income tax of the corporation is: a. 137 . P300.28. P380.000 Cost of sales 1.387.000. b.000.387. d.000.000. the taxpayer is a non-resident corporation. had the following data: Philippines Foreign Gross income P400. 18 . P400. If in Question 134. P216. c.

147 . P600. P125.000. b.000 19 .000 The total capital gains taxes for the year: a. a domestic corporation had the following data: Sales P4.000 Business expenses 1.300. a domestic corporation was in its sixth year of operations.000.100.000.000) 200. 144 . b. c.400.800.000 Business expenses 580. d.000 Business expenses 1.000 Cost of sales 1.000. In year 2002.000. P16.000 Capital loss on bonds of domestic corporation held for 6 months 30.500.000 Capital gains on sale of shares of domestic corporation held for two months (direct sale to buyer) 120. In Question 142. d. d.000 The income tax for 2001 is: a.000. d. 145 . P20..070.400.000. P288. the normal tax of the corporation at the end of the year: a.000 for a preceding year for which there is a certificate of tax credit: 1stQ 2ndQ 3rdQ Year Gross profit from sales 800. P11. P0.000.000 3.000 Capital gain on sale of land in the Philippines held for two years (sold at P1.000.000.000 1.Multiple Choice Questions CPA Reviewer in Taxation 142 . P6. P64.000.600.500. In Question 145.000 Capital gain on sale directly to buyer of shares of domestic corporation 50.000.000. P10.000 P700. P327.000. of its fourth year of operations in 2002. is a domestic corporation with the following data for 2002 (first year of operations): Gross profit from sales P2. b. c. which had an income tax refundable of P10. The following data are for the years 2001 and 2002: 2001 2002 Gross profit from sales P600. c. Co. Selected cumulative balances were taken from the records of ABC Co. a domestic corporation.000 2.000 50. P1. P54.. P480. P900.000. the income tax due fro 2002 is: a. Inc. b. P67. 143 . d.000. c.100. P375. 146 . In 2002. c. P17.000 The gross income tax of the corporation is: a. P4.000.400.000 Dividend from domestic corporation 20. b.000. D. P12.000 650.

000 100. d.000.000 Capital gain on sale directly to buyer of shares of domestic corporation 120. c.000 20.000.000. 150 . In Question 147.000. P140.000 Business expense 600.000 Business expense 1. the income tax due at end of the third quarter:] a. c.000 The gross income of A from the partnership is: 20 . the accumulated earnings for which year the Bureau of Internal Revenue considered to be improper: Sales P6.000 Dividend from domestic corporation 10.300.000. d. b. P221. P44. d. P39. P75.Multiple Choice Questions CPA Reviewer in Taxation 50.000.000. c. with A.100. d. P45.000 1.000 10.000 Expenses 350.000 20. AB is a general professional partnership. P171.000 65.000 Cost of sales 2.000.000. and B. 149 .000. d. P60.000 120. the income tax due (or refundable) at the end of the year: a. P175. P66. The following are data for the partnership and the partners in a calendar year: AB A B Gross income P600.000 20. (P10. b.000.000 15. P55.000 Income tax withheld 15.000. P140.000 P150.000 Interest on Philippine currency bank deposit 50.000. married. In Question 147. In Question 147.200.000 Dividend declared and paid during the year 500. A domestic corporation had the following data for 2002.700.000 1. P50.000 70. P70. b.000 115. P350. P50. single.000.000 2. b. P46.000.000.000.000.000 Interest on Philippine currency bank deposit 5. 151 . c. 152 . the income tax due at the end of the second quarter: a. c.000.000 35.000. b.000 Dividend income from domestic corporation 60.000 10. P323.000 The income tax due at the end of the first quarter: a. 148 .000 P200. P245.000 The improperly accumulated earnings tax is: a. participating equally in the income and expenses.000.000).

The income tax of the partnership is: a. P500.000.000.000. A is an employee in a firm that gives benefits to its rank-and-file employees. At the maturity of the policy. A was insured under an endowment policy with a value of P500. c. 20. Thirteenth month pay P25. Productivity incentives pay.000.000. 155 . d.500.000. d. Mr. Philhealth. 15. d.000 and P1. 154 . Mr.000 Amount received upon the death of the father 500. P32. c. with premium payments made of P800. 153 . 30. Rice subsidy. P290. b. The YZ & Co. The income tax of Mr. P80. the taxable income of A is: a. He received the following in a year: Salaries.000. P640. from which there was a return of P40. c. net of SSS. Some other amount. P205. and Pagibig contributions.000. Thirteenth month pay.000 Christmas bonus 5. P1.000.000.000.000. 30. d. P360. in its fifth year of operations.000.000.000.000. is a general partnership in trade. Total premiums paid by him during the term of premiums payments on the policy was P490.000 Additional premiums paid by the taxpayer to continue the policy 50. Mid-year bonus. b. P443. A received P500. b. Zero. In one calendar year it had a gross profit from sales and business expenses of P2.000. P473.000. Christmas bonus. 30.000.000. P590. c. d.000.000. The income of Mr. P300.000. P0. P40. c. A under the policy is: a.000. and of labor union dues. c.000 The taxable compensation income is: a. Received by the taxpayer under policies: Proceeds of life insurance (as beneficiary of mother) P400.000. Y and Z share equally in the profits and losses of the partnership. P68. 158 .000 Proceeds of life insurance (as beneficiary of father) 600. d.000. b.000. P8. respectively.000. upon maturity. 159 .Multiple Choice Questions CPA Reviewer in Taxation a. 156 . 157 . The compensation income of A subject to income tax is: a. P0. In Question 152. None. P600.000.000. P320. P125. Y as a consequence of being a partner in the YZ Partnership is: a.500. P10. b.000. P38.000.000.000 Productivity incentives pay 8.000 21 . c. b. b.000 Proceed of endowment policy. P50. P77. d.000.000 Insurance purchased from the father at cost to taxpayer of 200. P173. P13.

In Question 160. P700. b. The sale called for a payment of P300.000.000. No.000 and a mortgage of P2. P20.500. b. P 4. c.000 on the date of sale and P200. 1998 a piece of land held as capital asset in the Philippines at a selling price of P5.000 from accounts written off in a year which had a net loss before write-off of P36. P200. d. d.000. December 1. b.000. 3: P10.Multiple Choice Questions CPA Reviewer in Taxation 1.000. 1998.000. his income in Year 21 is: a. c. c. a citizen and resident of the Philippines. P50. P800. 160 .000. 165 .300. if qualified 22 . Joey Baretto.000).000. 164 .000. P50. c. Baretto will pay the tax on the transaction in installments. P5. P800.000.000. b.000.000.000. and at the beginning of the twenty-first year of the improvements.000. P20. b. No. d. December 1.1: P20. b. The income from the bad debt recovery is: a.000. P 5. 200. In Question 160. c.000 and at the time of the sale had a fair market value of P6. the balance shall be paid in installments of P500.000. if the income from the improvements is reported annually. In Question 160. December 1. the lessor took possession of the improvements. the annual income is: a. P35.000.000. P500. P100.000. Recovery of bad debt written off by a taxpayer: No. Cost of leasehold improvement P1. The land had a cost of P2. 100. Mr. if the income was reported annually. 161 . 2002 and December I. 2: P5. d.000.000 on December 1. P2.000 (write-off for the year was P5.000 and insurance recovery for the lessor was P40.000 only. 2003.000.000. c. 163 .000. when the fair market value thereof was P250. Manzano. if the income from the improvements was reported annually. P1.000 Crop insurance.000 from accounts written off in a year which had a net loss income of P8.000. d.000. P45. P26. 1999.000. and the leasehold improvements were destroyed by fire before the end of Year 10. P600.000 before write-off (write-off for the year was P20.000 The income from the amounts received is: a.000.000. if reported in one lump sum: a.000 Estimated useful life of improvements 50 years Remaining term of the lease 40 years Income from the improvements. the deductible loss of the lessor is: a.000 from accounts written off in a year which had a net income of P200. d. 162 . when the fair market value was P800.000.000. which mortgage was assumed by Mr. P200. Mr. sold to Martin Manzano on July 1.000.000 each on December 1.000).000 Proceeds of comprehensive car insurance 100. P150.000.000. P250. P30. 2001.000 before write off and a write off for P12. from crop destroyed by typhoon 50.

d. d. P36. P2. c.500.000. c. The taxpayer is a domestic corporation and the taxable year is 2003. b. b.000. b. P50. d.000 Cash in the succeeding year 500.000. P100.000.000. d.000.647.000.000 The capital gain tax in the year of sale (installment.000 with payment in one lump sum. Selling price of land in the Philippines held as capital asset P1.000 Cost of land 800. P20. P0. A citizen of the Philippines sold his principal residence in the Philippines at a selling price equal to its fair market value of P4.000.05.000. c. how much is the basis of the new principal residence? a. b. None of the above. 171 .000.44. 173 . In Question 165. 170 . P0.000. P30. c.000 Fair market value of the land at the time of sale 2. d. P17. b. the capital gain tax is: a. P300. P3.000 was utilized in acquiring a new principal residence. if only P3. 172 . d. Some other amount.000.000. 169 .33. P60. In Question 165.000. c.000. The basis or cost of the property was P2. In Question 170. P200. P250.000.000.000.000 Cash in the year of sale 300. if qualified): a.000. P240.000. P0. The capital gain tax: a. 168 . Some other amount. P500. In Question 170. 1998 was: a. P700. it sold a piece of land and building abroad held as capital asset at a selling price of P5. 167 .00.000.333. c.000. P2.000 23 .000 out of P4. d. P53.700.000.000.000.000. If the entire proceeds of the sale is immediately invested in acquiring a net principal residence. P240.000 Payments on the selling price: Assumption by the buyer of a mortgage on the property 900.000 Capital gain on direct sale to buyer of shares of domestic corporation held for 6 months 120.000. b. Some other amount. Calendar year 2002 Taxpayer is a citizen of the Philippines who is single: Capital gain on sale of bonds held for 20 months P50.444. d.500. P249. P2. c. the contract price was: a. b. the tax paid on the payment received on July 1. P180. P300. None of the above.500.000. the capital gain tax is: a. b.000. 166 . None of the above. P44.Multiple Choice Questions CPA Reviewer in Taxation The “initial payments” was: a. c.

P130. if costing is under the moving average method.000. c. None. In Question 175. P25. 1: 100 shares acquired at P120 per share. 176 . b. P10.000.000 Total capital gains to consider at the end of the year: a. Capital stock issued and outstanding of domestic corporation – Common only Stock owned: Acquisition No.000. the capital gain tax is: a.000 Net capital loss in 2001 (net taxable income of the year was P10.000.000.000. the capital gain tax is: a. the net capital loss carry-over from 2001 would have been: a.000.000.000.000 Capital loss on sale of land in the Philippines held for 3 years 60. P35.000 60. d. 177 .000. 175 . b. P0. P20. b. Calendar year 2002: Taxpayer is a citizen of the Philippines who is single Capital gain on sale of bonds held for 2 months P45.000.75. c. 174 . 2: 50 shares acquired at P130 per share. P55. 3) – 20%.000 Capital loss on sale of land in the Philippines held for 3 years on a selling price of P800. b. P5. P30.000) 20. the net capital loss carry over to 2002 was: a. Stock dividend received: (Acquisition No.000 Capital gain on sale directly to buyer of shares of domestic corporation held for 16 months 120. Some other amount. P160. In Question 177. d. P120.Multiple Choice Questions CPA Reviewer in Taxation Capital loss on sale of family car held for 11 months 80. P39. c. c. b.72. Shares sold directly to a buyer – 110 shares at P110 per share. Some other amount. In Question 173. If costing is under the FIFO method. P55. c.000 Capital loss on sale of family car held for 5 years 80.000 The net capital gain in 2002 was: a. P118. P50. Acquisition No. d. d. b.000. P121. 24 . P40. P5.000) 20.67. P110. 178 .000 Net capital loss in 2001 (net taxable income of the year was P30. P145. c. d.

000 620. P18. c. A domestic corporation had: Gross profit Business Year from business Expenses 1998 P600.000 Holding period 2 years Capital gain on installment (if opted to) in 2002? a.000 Payment in 2002 15. 180 .000 Cost 10.000 470.000. Some other amount. b.000. P116. If choosing the itemized deductions from gross income. with gross income from business of P500.000. The deductible interest expense is: a. 181 . He deposited the money with Bank B.000 900.000 1999 500. b. Data on the property follow: Selling price P60. 185 . 179 . c.500.600. P25. a taxpayer borrowed money from Bank A.000 Payment in 2003 45. net of exclusions from gross compensation income. The taxable income is: a. b. In Question 182. P460. P250. premium payments on health insurance for the family of P4. d.900.000 2000 900. P0. capital gain in installment (if opted) in 2003? a.000. Some other amount.500.200. P113.000 2001 850. 182 .600. had a gross compensation income of P180.000 850. P25. P25. In Question 179. A taxpayer. P50. Loss – (P20.000 2002 920. In 2002.000. d.750.000 P700.Multiple Choice Questions CPA Reviewer in Taxation d. the taxable income in 2002 is: a. business expenses with supporting receipts of P40. P177.000.500.000. c. P3.000). P428. and expenses related to his employment of P70. P0. P12.000 and premiums on health insurance of P3.000.000. P4. None of those mentioned. b. P300. a resident citizen who is married. c. d. b. d.000.000.60. P37. b.000. Property held by an individual as capital asset (not real property or shares of stock) was sold in 2001. Some other amount. the taxable income is: a. 184 .000. b.000. 25 . P8.250.000 The taxable income in 2001: a. c. 183 . with six qualified dependent children. The taxpayer is a resident citizen who is married. P6.000. P68.000. that gave him an interest expense of P8. c. d. and he had an interest income of P10. P50. d.000.

187 .000. P256.000. P186.000 Capital gain on sale of asset held for 2 years 10. the taxable income is: a. 186 . P425. b. 192 . A citizen who is married. d.400.000 The fringe benefit tax is: a.000.000. c.178. c.000. P652. an employer gave the following fringe benefits. had the following data in 2000: Gross revenues from services P400. A management employee borrowed from his employer (advances against salaries) P120. d. b. c.040.000 To rank-and-file employees 5.000. P7. P14. b.000.000. 26 . P289. Some other amount. there was no interest charged to the loan.000.000. b. P680.000 (Credit) Cash P389. c.000 If choosing the Optional Standard Deduction. if the taxpayer chose the Optional Standard Deduction. Journal entry: (Debit) Fringe benefit expense P389.22.000.000 Means that the grossed-up monetary value of the fringe benefits to supervisory personnel had a gross monetary value of: a.000. In Question 188. d.49. d. P418.000. P8. In Question 185. the monetary value of the fringe benefit to the rank-and-file employees is: a. Some other amount. P389.000 Direct costs of the services 100.000.000.000. to its employees: To management level employees P2. P6.000 Dividend from resident corporation 15. P289.000 every payday (fifteen days).47. P425. P246. b. P389. d. P2. In 2002. P288.000 (Credit) Fringe benefit tax payable 136.000. P3. P960. 190 . d. payable from his salaries at P5. c. In Question 190. d. the taxable income is: a. P460.000.000. 191 . Some other amount. c. P100. Since check-off was to be made against salaries.000. P21. 188 . in cash and in kind.Multiple Choice Questions CPA Reviewer in Taxation c.040. P450.000.776. b. The fringe benefit tax is: a. P0.000.000.000 Capital loss on sale of asset held for 6 months 5. P418. c.000.000.000 (Debit) Fringe benefit tax expense 136.000. 189 .040. d. Some other amount. the deduction from the gross income of the employer for Fringe Benefit Expense is: a. b.

195 .000 Husband: Sales 2. are now worthless. P0.000.000 To beggars in the streets 5. that it acquired at a cost of P20. c. P1. the corporation shall have a deductible loss of: a. and has to be written off.127. d.000 Premiums on health insurance paid 5. P2. with five qualified dependent children. d. P6.000. A corporation bought a piece of land with a building at a cost of P4.000. b. P60. Philippines. P200. P45.000 for the land and P1. P4.000. (with husband claiming the additional exemptions) had the following data for 2002: Wife: Salaries P180..500.000. b. That it acquired at a cost of P40. Contributions and donations were made by a taxpayer. c. P0. b. how much is the fringe benefit tax? a. Included in the compensation package of an executive was the free use of the company’s residential condominium unit in Makati City.000 Zonal value 2.832. d. It also had investment in shares of stock of C Co. 194 .45. c.000.000 To the Society for the Blind. b.78.000. P20. Upon razing the old building at a cost of P200. as follows: To the Quiapo Catholic Church P15. P945.176. P45. Inc. while the share of stock of C Co. P705.000.166.000 Capital gains on assets held for not more than 12 months: On sale directly to buyer of shares of domestic corporation 135.000.000 Thirteenth month pay 15.200. P326.000 Dividend from domestic corporation 20.400. The value of the shares of stock of B Co.000.000. had investments in shares of stock of B Co.000.000.000.47. d.000.000 The monthly gross monetary value of the fringe benefit is: a.000 Royalty from books 30. In Question 193.500.000 Royalty from patented invention 60.000.000. Data on the condominium unit follow: Fair market value in the Real Property Declaration P1. Philippines 10. P1. c. 196 .000.000 Dividend from resident corporation 15.000 On sale directly to buyer on bond of domestic corporation 40.000. P25.67.000 The actual contributions to be compared with the 5%/10% limitation is: a.000 27 . It was not the intention of the corporation to use the building but to have it razed to make the land available for the construction of its offices.000.000 Fair market value 2. d. A Co. Husband and wife. P50.000.Multiple Choice Questions CPA Reviewer in Taxation 193 . b.000 Interest on Philippine currency bank deposit 100. 197 .000 To the Sistine Chapel in Rome 20.000. c.000 for the building. The deductible loss is: a. P40.35. had decreased to P15. 198 . 1. P1960.000.

000 From Philippine currency bank deposits 8.200. In Question 198.000.500. b. P39. b.000 Cost of sales 980. d. P17. c. 204 . In Question 198.000 Business expenses 500. P52.245.000 Capital loss on asset held for more than 12 months: On sale directly to buyer of land in Indonesia 250.000. P8. The year is 2002. P27.000 From resident corporation 15. d. the capital gain tax on shares of stock: a. P145. the final tax on passive income is: a.000 Capital gain on sale at P4.500.000 On sale directly to buyer of bonds of domestic corporation 25.000 On sale thru a real estate broker of land in the Philippines (fair market value-P2.000. c. 199 .000 Interest income: From trade notes receivable 5.000.000 On sale of family car 100. b. c. the income tax due at the end of the year from the husband and wife: a.500. b.000. P20.800.500. P(135. P37.000).000. d. c. P13. and net income per books of P700.000.000.000 of land in the Philippines held for ten years 28 . b.000 The income tax withheld on the compensation income is: a.000. P24.000 Contributions to churches 5. In Question 198. P40.364. 203 .650. P105. P130.000) 500. P35. P35. In Question 198. a domestic corporation in its sixth year of operations had a gross profit from sales of P2.000 On sale of vacation house and lot in Malaysia 200. P120. In Question 198. P155.000. the capital gain tax on real property: a. P32. P150. c.000 after considering: Dividend income: From domestic corporation P 20. d. b. P20. P100.000.500.920.Multiple Choice Questions CPA Reviewer in Taxation On sale thru the Philippine Stock Exchange of shares of domestic corporation 60. the net capital gain (loss) at the end of the year: a. selling price-P3.400. P163.400. P180.000.790.000. d.000. c.500. 202 . d. 201 . 200 .

In Question 204. and under the terms of the sale.000 on the date of sale and P50.Multiple Choice Questions CPA Reviewer in Taxation 100.200 Capital loss on sale of bonds of a domestic corporation held for two years 5.000.000 The income tax due from the corporation: a.000 Losses 90. Cielo Co.000 for a selling price of P200.000.000 Income from trust indenture with the Equitable PCIBank 4. The sale was on July I.60. d.000 Pension trust 16. Mr.000 Depreciation 40.000) 260.000. c.944.364.32.450.984.000 on the date of sale and installment payment of 500. b. b. P72. P200. P298.000. P50.901. the buyer was to assume a mortgage of P50. P50. 2002. d. P30. c. P37.000 Bad debts (direct writ-off) 18.000 Utilities expense 75.000.56. The income in 2002 reported under the installment method was: a. 206 . sold a piece of land (ordinary asset) which had a cost to it of P1. pay P50. if the accumulation of profits in 2002 is adjudged to be improper. b.000 every July 1 thereafter. None of the above.000 Taxes and licenses (including income tax on interest income and on capital gain of P243. 207 . P0.758. The sale called for an assumption by the buyer of the mortgage on the land of P1. P90.000 every year 29 .000 Capital gain on sale of shares of stock of a domestic corporation held for eight months.000 Capital gain on sale of bonds with maturity of 10years 6.000 Income tax (three quarterly income taxes) 80.000.000. d. 205 . the improperly accumulated earnings tax (IAET) is: a.000. cash of P500. sold directly to buyer 12.500.328. P22.000 on the property. A sold property which had a cost to him of P110. P29. c.86.500 Dividend declared and paid 200.000 Salaries and wages 100.000 for a selling price of P4.

208 .000 Dividend on shares of stock of domestic corporation 5.000. 2000. For 2002 which is under investigation. Mr. P1. d.000. P327. of 100 shares P7.400 Capital gain on bonds of a domestic corporation held for 8 months 30. payable at P1.000 Sale of June 18. P3. d.000 on December 1.000 Personal.000 Purchase on June 22. b. b.000 Capital loss on bonds of a domestic corporation held for 18 months 70.000 for P4.000 Interest received on long-term investment in banks 2.000 Premiums on family health and hospitalization insurance 77. d. P356. b.000 on December 1.000.000.Multiple Choice Questions CPA Reviewer in Taxation thereafter. he had the following data: Net worth. c.. P225. a domestic corporation: Purchase on January 5.000 on December 1.000. 209 . d.000. 210 . P283.000 is collected: a.500.000) 10. P500.000. In 2002. P2. 211 . b. A is not a dealer in securities.000. P0.000 Net worth. P1. P235. P1.000.500.000 Rent income per books (out of an advance rental of P60. of the shares purchased on January 5 6. P1.500. c. c. c. The taxpayer is a resident citizen who is married with two qualified dependent children. the income in 2001 when P1. P375.000. P750.000 Interest paid on money borrowed for use in acquiring long-term investment 1. P466.500.000. evidenced by a mortgage note for P2.000.000.000. beginning of the year P400.000 Cost to repair residential house partially destroyed by fire 30.000. and the balance.000. The note had a fair market value at the time of execution equal to eighty-five percent of its face value. 2001 and P1.000.000.000. The income in 2000 under the deferred payment method of reporting income: a. end of the year 600.000. Del Mundo Co.500.000.000.625. The sale called for a payment on date of sale of P1.000 Income tax shown on the return for 2002 29. he had the following transactions of common shares of stock of Z Co.000 Income tax paid for 2001 60.000 The taxable income per investigation: a. living and family expenses 100.000.500. In Question 208. of 60 shares 6. 2002.500 30 . The income to report in the year of sale under the installment method of reporting income is: a. sold a piece of land (ordinary asset) which had a cost of P2.

P0. had the following data for 2000: Taxable income. Arnold Custodio.000 Fair market value of property at the time of death 250. P7. d. P570.000.000 Taxable income. P540.600.100.000 Philippine income tax paid. the basis of the shares purchased on June 22. X Foreign Country 600. was asked to surrender his 100 shares of Anson Co. P1. c.000. 217 . Some other amount. P600. with a fair market value of P130. 212 . after credit for foreign income taxes paid is: a. P218. P356. b. b. P0.000 Fair market value of property at the time of transfer 300.000. Philippines P1.000 and cash of 30. P312.000 The loss not recognized on the sale of June 18: a. Arnold Custodio on the merger is: a. In Question 216.500. P640. d. with a consideration received: Consideration received P200. b. continues to exist..000. c.000. P370.000 31 . Some other amount..000 and received under the merger 100 shares of Bono Co. If in Question 216. c. c. c. P70. the basis to Mr.000. Some other amount. 213 . 219 . b. how much would have been the income tax due? a. received is: a. of the shares purchased on June 22 8.000.Multiple Choice Questions CPA Reviewer in Taxation Sale on October 5. that he acquired for P100. d. Anson Co. a domestic corporation.000 Tax credit for foreign income taxes paid? a. d. M CO. P340.600. a stockholder of Anson Co.000. P0. P0. 215 . 2000 is: a. c.000. P60. P411. Mr. Some other amount. b.000. d. three quarters of the year 110. d.000. P900.000 Taxable income. P30. Some other amount. b.000. The gain to Mr.000.000. P600. Some other amount. In Problem 211. b. In Question 214. was merged into Bono Co. Arnold Custodio of the shares of Bono Co. P521. b. the corporation chose to deduct the foreign income tax paid (instead of availing of a foreign income tax credit). c. 2000 is: a. P130. 214 .500. In Problem 211.000 Income tax paid to Y Foreign Country 120. d. and only Bono Co. c. d. the gain on the sale of October 5.000. Y Foreign Country 400. A revocable transfer.000. the Philippine income tax still due. P1. P6. 216 . P100.000 Income tax paid to X Foreign Country 250. 218 .

d. b. P500.000. 32 . P300.000. P50.000. A decedent was married at the time of death and under the system of conjugal partnership of gains.000. Among the properties in the gross estate were: Land.000.000 Deduction for family home: a. 220 . b. d. P100.000. c. P250.000. inherited before the marriage.000.000 Family home built by the spouses on the inherited land 800. c. P900. P450. fair market value P100.Multiple Choice Questions CPA Reviewer in Taxation Value to include in the gross estate: a. P400.

Letter “B” is the correct answer. 27 . 31 . Letter “A” is the correct answer. Letter “B” is the correct answer. 46 . Letter “C” is the correct answer. 22 . Letter “C” is the correct answer. 21 . 47 . 13 . Letter “A” is the correct answer. 26 . Letter “D” is the correct answer. 44 . 3 . Letter “D” is the correct answer. Letter “B” is the correct answer. 38 . Letter “B” is the correct answer. 6 . 11 . Letter “D” is the correct answer. 15 . Letter “B” is the correct answer. 4 . 35 . 2 . 43 . 12 . 16 . Letter “D” is the correct answer. Letter “C” is the correct answer. Letter “D” is the correct answer. 28 . 45 . Letter “A” is the correct answer. . Letter “D” is the correct answer. Letter “B” is the correct answer. 5 . Letter “A” is the correct answer. 7 . 30 . Letter “B” is the correct answer. 41 . Letter “C” is the correct answer. Letter “B” is the correct answer. 39 . Letter “C” is the correct answer. 29 . 36 . 10 . 8 . 9 . 17 . Letter “B” is the correct answer. 18 . Letter “B” is the correct answer. 19 . Letter “A” is the correct answer. Letter “D” is the correct answer. Letter “C” is the correct answer. 1 ANSWER KEY TO QUIZZERS . Letter “B” is the correct answer. 37 . 42 . Letter “D” is the correct answer. 14 . Letter “B” is the correct answer. Letter “A” is the correct answer. 23 . 24 . Letter “B” is the correct answer. Letter “A” is the correct answer. 20 . Letter “A” is the correct answer. Letter “D” is the correct answer. 34 . Letter “B” is the correct answer. 25 . Letter “D” is the correct answer. Letter “D” is the correct answer. Letter “D” is the correct answer. Letter “B’ is the correct answer. Letter “C” is the correct answer. Letter “A” is the correct answer. Letter “A” is the correct answer. Letter “B” is the correct answer. 32 . 33 . 40 . Letter “D” is the correct answer. Letter “D” is the correct answer.

85 . 82 . 78 . 57 . Letter “A” is the correct answer. 87 . Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “D” is the correct answer. . Letter “D” is the correct answer. 52 . Letter “D” is the correct answer. 95 . Letter “D” is the correct answer. Letter “C” is the correct answer.48 . Letter “C” is the correct answer. 86 . 61 . Letter “A” is the correct answer. Letter “C” is the correct answer. Letter “B” is the correct answer. Letter “D” is the correct answer. 93 . 84 . Letter “A” is the correct answer. 71 . Letter “D” is the correct answer. Letter “C” is the correct answer. 96 . Letter “C” is the correct answer. 80 . 74 . 90 . 55 . Letter “C” is the correct answer. Letter “A” is the correct answer. Letter “D” is the correct answer. 49 . 79 . Letter “A” is the correct answer. Letter “D” is the correct answer. 62 . Letter “B” is the correct answer. 51 . Letter “C” is the correct answer. 63 . 72 . 92 . Letter “D” is the correct answer. 94 . 53 . 77 . Letter “C” is the correct answer. 76 . 65 . Letter “D” is the correct answer. Letter “A” is the correct answer. 59 . Letter “A” is the correct answer. 67 . Letter “C” is the correct answer. 81 . Letter “D” is the correct answer. Letter “D” is the correct answer. 58 . 60 . Letter “B” is the correct answer. 64 . Letter “A” is the correct answer. 91 . Letter “C” is the correct answer. Letter “D” is the correct answer. 83 . Letter “A” is the correct answer. 68 . Letter “D” is the correct answer. 89 . Letter “C” is the correct answer. Letter “D” is the correct answer. 69 . Letter “C” is the correct answer. Letter “D” is the correct answer. Letter “B” is the correct answer. 50 . Letter “D” is the correct answer. 70 . 56 . Letter “A” is the correct answer. 73 . Letter “D” is the correct answer. 88 . Letter “A” is the correct answer. Letter “D” is the correct answer. 54 . 75 . Letter “D” is the correct answer. 66 .

113 . 127 . Letter “B” is the correct answer. Letter “C” is the correct answer. 124 . 100 . 107 . Letter “D” is the correct answer. Letter “B” is the correct answer. 134 . Letter “A” is the correct answer. 122 . 120 . 121 . Letter “A” is the correct answer. Letter “B” is the correct answer. Letter “A” is the correct answer. Letter “B” is the correct answer. 114 . Letter “B” is the correct answer.97 . Letter “A” is the correct answer. Letter “A” is the correct answer. 111 . Letter “D” is the correct answer. Letter “B” is the correct answer. Letter “A” is the correct answer. 136 . Letter “A” is the correct answer. Letter “C” is the correct answer. Letter “D” is the correct answer. 130 . Letter “A” is the correct answer. Letter “A” is the correct answer. Letter “A” is the correct answer. 119 . Letter “B” is the correct answer. 125 . Letter “A” is the correct answer. Letter “B” is the correct answer. Letter “C” is the correct answer. 102 . Letter “A” is the correct answer. 132 . 99 . 104 . 131 . Letter “D” is the correct answer. Letter “B” is the correct answer. 105 . 144 . 129 . Letter “A” is the correct answer (or “D”). 101 . 115 . Letter “A” is the correct answer. Letter “C” is the correct answer. 118 . 140 . Letter “D” is the correct answer. 133 . Letter “D” is the correct answer. Letter “B” is the correct answer. Letter “D” is the correct answer. 108 . Letter “A” is the correct answer. 135 . 116 . Letter “A” is the correct answer. 110 . Letter “D” is the correct answer. 128 . 98 . Letter “D” is the correct answer. 106 . 142 . 109 . Letter “C” is the correct answer. 112 . 123 . Letter “C” is the correct answer. Letter “A” is the correct answer (or “D”). . 143 . 103 . Letter “D” is the correct answer. Letter “A” and “C” is the correct answer. 145 . Letter “D” is the correct answer. 138 . Letter “B” is the correct answer. 117 . Letter “C” is the correct answer. Letter “C” is the correct answer. 126 . 141 . 137 . 139 . Letter “C” is the correct answer.

175 . Letter “B” is the correct answer. 188 . Letter “D” is the correct answer. 169 . Letter “C” is the correct answer. 162 . Letter “C” is the correct answer. Letter “D” is the correct answer. 172 . Letter “A” is the correct answer. 163 . 191 . 149 . Letter “C” is the correct answer. 192 . 166 . Letter “C” is the correct answer. 181 . Letter “A” is the correct answer. Letter “A” is the correct answer. Letter “C” is the correct answer. Letter “A” is the correct answer. Letter “A” is the correct answer. 182 . Letter “B” is the correct answer. 174 . 158 . 165 . Letter “C” is the correct answer. 155 . 170 . 156 . 183 . 152 . 159 . 167 . 194 . Letter “B” is the correct answer. Letter “C” is the correct answer.146 . Letter “B” is the correct answer. 185 . 187 . 168 . 186 . 148 . Letter “D” is the correct answer. Letter “B” is the correct answer. 151 . 177 . Letter “A” is the correct answer. Letter “C” is the correct answer. Letter “D” is the correct answer. 171 . Letter “A” is the correct answer. 161 . 160 . Letter “B” is the correct answer. 154 . Letter “B” is the correct answer. Letter “A” is the correct answer. 178 . Letter “B” is the correct answer. Letter “D” is the correct answer. Letter “A” is the correct answer. Letter “A” is the correct answer. 164 . 189 . Letter “A” is the correct answer. . 179 . 157 . Letter “C” is the correct answer. Letter “C” is the correct answer. Letter “C” is the correct answer. 173 . 147 . Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “A” is the correct answer. Letter “D” is the correct answer. 184 . 153 . Letter “C” is the correct answer. Letter “D” is the correct answer. Letter “B” is the correct answer. 176 . Letter “A” is the correct answer. 190 . 193 . Letter “C” is the correct answer. Letter “C” is the correct answer. 150 . Letter “D” is the correct answer. Letter “C” is the correct answer. 180 .

210 . Letter “A” is the correct answer. 213 . 202 . Letter “B” is the correct answer. Letter “C” is the correct answer. Letter “A” is the correct answer. Letter “B” is the correct answer. 207 . 209 . 211 . Letter “C” is the correct answer. Letter “B” is the correct answer. 215 . 204 . 201 . 198 . 205 . Letter “D” is the correct answer. 212 . 218 . 203 . Letter “A” is the correct answer. Letter “B” is the correct answer. 220 . Letter “B” is the correct answer.195 . 214 . 216 . 197 . 208 . Letter “C” is the correct answer. Letter “B” is the correct answer. Letter “C” is the correct answer. 200 . Letter “A” is the correct answer. 196 . 219 . 199 . 217 . Letter “D” is the correct answer. Letter “D” is the correct answer. . Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “B” is the correct answer. Letter “A” is the correct answer. 206 . Letter “B” is the correct answer. Letter “A” is the correct answer. Letter “D” is the correct answer.