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A.MULTIPLE CHOICE:
A. SUBSIDY
B. TARIFF
C. TAXATION
D. TRIBUTE
A) CRIMINAL IN NATURE
B) PENAL IN NATURE
C) POLITICAL IN NATURE
D) GENERALLY PROSPECTIVE IN APPLICATION
A) PROVINCES
B) CITIES
C) BARANGAYS
D) BARRIOS
A) THEORETICAL JUSTICE
B) ADMINISTRATIVE FEASIBILITY
C) FISCAL ADEQUACY
D) NONE OF THE ABOVE
A) QUANTIFIABILITY
B) EQUALITY
C) CERTAINTY
D) CONVENIENCE
A) INHERENT LIMITATION
B) THEORETICAL JUSTICE
C) LEGISLATIVE IN CHARACTER
D) ADMINISTRATIVE FEASIBILITY
A) FALSE, FALSE
B) FALSE, TRUE
C) TRUE, TRUE
D) TRUE, FALSE
A) THEORETICAL JUSTICE
B) LEGISLATIVE IN CHARACTER
C) INHERENT LIMITATIONS
D) CONSTITUTIONAL LIMITATIONS
19. WHICH OF THE FOLLOWING STATEMENTS IS NOT CORRECT?-(RPCPA)
A) INTERNATIONAL COMITY
B) DOUBLE TAXATION
C) NON-DELEGATION OF THE LEGISLATIVE POWER TO TAX
D) TERRITORIALITY
A) UNIFORMITY OF TAXATION
B) EQUALITY OF TAXATION
C) DUE PROCESS OF LAW
D) NON-DELEGATION OF LEGISLATIVE POWER
A) I ONLY
B) I AND II
C) III AND IV
D) I, III AND IV
25. STATEMENT 1:THE CONSTITUTIONAL EXEMPTION ON INCOME
TAXES, PROPERTY TAXES AND CUSTOMS DUTIES IS ALLOWED ON
NON-STOCK, NON-PROFIT EDUCATIONAL INSTITUTIONS ONLY.
A) STATEMENT 1 ONLY
B) STATEMENTS 1 AND 2
C) STATEMENT 2 ONLY
D) ALL OF THEM
A) THEORETICAL JUSTICE
B) LEGISLATIVE IN CHARACTER
C) INHERENT LIMITATIONS
D) CONSTUTIONAL LIMITATIONS
A) NATIONAL DEFENSE
B) PUBLIC EDUCATION
C) IMPROVEMENT OF SUGAR INDUSTRY
D) NONE OF THE ABOVE
A)YES, NO
B)YES, YES
C)NO, YES
D)NO, NO
A) INTERNATIONAL COMITY
B) RECIPROCITY PROVISIONS
C) PRINCIPLE OF TERRITORIALITY
D) EXEMPTION IN THE TAX CODE
41. DEALS WITH THE PROVISION OF THE LAW WHICH DETERMINES THE
PERSON OR PROPERTY TO BE TAXED, THE SUM OR SUMS TO BE RAISED,
THE RATE THEREOF, AND THE TIME AND MANNER OF LEVYINGM
RECEIVING AND COLLECTING OF TAXES
A) COLLECTION
B) PAYMENT
C) ENFORCED CONTRIBUTION
D) LEVY
A) COLLECTION
B) PROPORTIONATE IN CHARACTER
C) ENFORCED CONTRIBUTION
D) LEVY
43.THE AMOUNT REQUIRED IS DICTATED BY THE NEEDS OF THE
GOVERNMENT-(RPCPA)
A) LICENSE FEE
B) TAX
C) TOLL
D) TARIFF
A) UNLIMITED AS TO AMOUNT
B) PAYABLE IN MONEY
C) PROPORTIONATE IN CHARACTER
D) REGULAR IN PAYMENT
A) PROPERTY TAX
B) EXCISE TAX
C) POLL TAX
D) INCOME TAX
A) TRANSFER TAX
B) SALES TAX
C) REAL PROPERTY TAX
D) INCOME TAX
50. SHARON, A CPA HAS JUST OBTAINED HER CPA LICENSE. BEFORE SHE
CAN LAWFULLY PURSUE HER OCCUPATION, SHE SHOULD PAY-
(RPCPA)
A) PRIVILEGE TAX(PTR)
B) PERCENTAGE TAX
C) CPA’S INCOME TAX
D) VALUE-ADDED TAX
A) DIRECT TAX
B) INDIRECT TAX
C) EXCISE TAX
D) POLL TAX
A) IMMIGRATION TAX
B) TRANSFER TAX
C) INCOME TAX
D) CONTRACTOR’S TAX
A) DIRECT TAX
B) INDIRECT TAX
C) PROPERTY TAX
D) NONE OF THE ABOVE
57. FELIX IS A MINING OPERATOR. HIS MINERAL LANDS ARE NOT COVERED
BY ANY LEASE CONTRACT. THE TAX FELIX HAS TO PAY BASED ON THE
ACTUAL VALUE OF THE GROSS OUTPUT OR MINERAL PRODUCTS
EXTRACTED IS-(RPCPA)
A) MINING TAX
B) ROYALTIES
C) RENTAL
D) AD VALOREM TAX
A) REVENUE TAX
B) REGULATORY TAX
C) SPECIFIC TAX
D) AD VALOREM TAX
A) REVENUE TAX
B) REGULATORY TAX
C) SPECIFIC TAX
D) AD VALOREM TAX
A) NATIONAL TAX
B) LOCAL TAX
C) PROPORTIONAL TAX
D) GENERAL TAX
61. TAXES IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE AND IS
EFFECTIVE ONLY WITHIN THE TERRITORIAL BOUNDARIES THEREOF
A) NATIONAL TAX
B) LOCAL TAX
C) PROGRESSIVE TAX
D) REGRESSIVE TAX
A) DIGRESSIVE
B) UNIFORM
C) REGRESSIVE
D) PROGRESSIVE
63.THE POWER OF THE STATE OR THOSE TO WHOM THE POWER HAS BEEN
DELEGATED TO TAKE PRIVATE PROPERTY FOR PUBLIC USE UPON PAYING
TO THE OWNER A JUST COMPENSATION
A) TAX
B) LICENSE FEE
C) TOLL
D) EMINENT DOMAIN
A) TAXATION
B) EMINENT DOMAIN
C) POLICE POWER
D) POLICE POWER AND POWER OF TAXATION
70. STATEMENT 1: THE CONGRESS CAN ENACT TAX LAWS EVEN IN THE
ABSENCE OF A CONSTITUTIONAL PROVISION GRANTING SAID BODY THE
POWER TO TAX.
A) FALSE, FALSE
B) FALSE, TRUE
C) TRUE, TRUE
D) TRUE, FALSE
71. WHICH OF THE FOLLOWING MAY NOT RAISE MONEY FOR THE
GOVERNMENT-(RPCPA)
A) POWER OF TAXATION
B) POLICE POWER
C) POWER OF EMINENT DOMAIN
D) PRIVATIZATION OF GOVERNMENT’S CAPITAL ASSETS
72. IN THIS POWER OF THE STATE, THE PERSON WHO IS PARTING WITH HIS
MONEY OR PROPERTY IS PRESUMED TO RECEIVE A BENEFIT-(RPCPA)
A) TAXATION
B) POLICE POWER
C) EMINENT DOMAIN
D) FORFEITURE POWER
A) TAXATION
B) POLICE POWER
C) EMINENT DOMAIN
D) NONE
A) DEMAND OF PROPRIETORSHIP
B) COMPENSATION FOR THE USE OF ANOTHER’S PROPERTY
C) MAY BE IMPOSED BY PRIVATE INDIVIDUALS
D) LEVIED FOR THE SUPPORT OF THE GOVERNMENT
A) LICENSE FEE
B) TAX
C) TOLL
D) FRANCHISE
A) TAX
B) CUSTOMS DUTY
C) REVENUE
D) ORDINARY INCOME
A) LICENSE FEE
B) INCOME
C) CUSTOMS DUTY
D) REVENUE
A) CORRECT, WRONG
B) WRONG, CORRECT
C) WRONG, WRONG
D) CORRECT, CORRECT
A) SHIFTING
B) CAPITALIZATION
C) TRANSFORMATION
D) TAX EXEMPTION
92. WHICH OF THE FOLLOWING IS NOT A SCHEME OF SHIFTING THE
INCIDENCE OF TAX BURDEN?-(RPCPA)
A) SHIFTING
B) CAPITALIZATION
C) TRANSFORMATION
D) TAX EXEMPTION
A) SHIFTING
B) CAPITALIZATION
C) TRANSFORMATION
D) TAX EXEMPTION
A) STATEMENT 1 ONLY
B) STATEMENTS 1 AND 2
C) STATEMENT 2 ONLY
D) NEITHER OF THEM
A) TAX EXEMPTION
B) TAX EVASION
C) TAX AVOIDANCE
D) TRANSFORMATION
A) TAX EXEMPTION
B) TAX EVASION
C) TAX AVOIDANCE
D) TRANSFORMATION
A) I ONLY
B) I AND III ONLY
C) I AND IV
D) I, III AND IV
103. THE FOLLOWING, EXCEPT ONE, ARE EXCEPTIONS TO THE RULE THAT
TAX EXEMPTIONS MUST BE STRICTLY CONSTRUED AGAINST THE
TAXPAYER
A) TRUE, TRUE
B) FALSE, TRUE
C) FALSE, FALSE
D) TRUE, FALSE
A) CORRECT, WRONG
B) CORRECT, CORRECT
C) WRONG, CORRECT
D) WRONG, WRONG
109. ALL OF THE FOLLOWING, EXCEPT ONE, ARE SOURCES OF TAX LAWS-
A) STATUTES
B) COURT DECISIONS
C) CONSTITUTION
D) BIR RULINGS
A) SET-OFF DOCTRINE
B) DOCTRINE OF RECIPROCITY
C) TAX SPARING DOCTRINE
D) EQUITAB LE RECOUPMENT
A) CORRECT, WRONG
B) CORRECT, CORRECT
C) WRONG, CORRECT
D) WRONG, WRONG
113. THE PLACE OR AUTHORITY THAT HAS THE RIGHT TO IMPOSE AND
COLLECT TAXES-
A) TERRITORIALITY
B) INTERNATIONAL COMITY
C) SITUS OF TAXATION
D) TRANSFORMATION
B. TRUE OR FALSE
43. ADMINISTRATIVE FEASIBILITY MEANS ALSO THAT THE TAX MUST NOT
BE DISCOURAGING TO BUSINESS ACTIVITY.
46. TAX EVASION IN ONE YEAR CAN BE OFFSET BY PAYING MORE TAXES
THE FOLLOWING YEAR.
2. ARCHIE, A STAFF AUDITOR OF SGV & CO., TOOK AND PASSED THE
EXAMINATION FOR CERTIFIED INTERNAL AUDITOR (CIA). THE FOLLOWING
YEAR, HE RESIGNED FROM HIS JOB AND LEFT THE PHILIPPINES ON APRIL
10, 2006 TO WORK AS AN INTERNAL AUDITOR IN A BIG ESTABLISHMENT IN
MELBOURNE, AUSTRALIA. FOR INCOME TAX PURPOSES, WHICH OF THE
FOLLOWING STATEMENTS IS CORRECT WITH RESPECT TO ARCHIE’S
CLASSIFICATION?
A) P28,000
B) P26,000
C) P24,000
D) P20,000
A) ADDITIONAL EXEMPTION
B) SPECIAL ADDITIONAL PERSONAL EXEMPTION
C) OPTIONAL STANDARD DEDUCTION
D) PERSONAL EXEMPTION
10.A MAN HAS THREE WIVES UNDER HIS TRIBAL CUSTOMS AND PRACTICE.
HE IS ENTITLED TO PERSONAL EXEMPTION APPERTAINING TO-(RPCPA)
A) A SINGLE INDIVIDUAL
B) A MARRIED INDIVIDUAL
C) A MARRIED INDIVIDUAL PLUS ADDITIONAL EXEMPTION FOR
DEPENDENTS PERTAINING TO EACH OF THE 2 EXTRA WIVES
D) A HEAD OF THE FAMILY PLUS ADDITIONAL EXEMPTION FOR
DEPENDENTS PERTAINING TO EACH OF HIS THREE WIVES
A) SISTER-IN-LAW
B) STEPMOTHER
C) GRANDFATHER
D) ILLEGITIMATE DAUGHTER
15. NENA, AGED 70 YEARS OLD, WHO LIVES WITH HER UNMARRIED SON
MARIO, RECEIVED P60,000 WHICH WAS USED FOR HER SUPPORT DURING
THE YEAR. THE SOURCES OF HER SUPPORT WERE AS FOLLOWS:
A) MARIO
B) DOUGLAS
C) LALAINE
D) NONE
A) ILLEGITIMATE CHILD
B) LEGALLY ADOPTED CHILD
C) LEGITIMATE CHILD
D) CHILD BY NATURAL ADOPTION
17. MR. MAASIKASO, SINGLE, HAS THE FOLLOWING DEPENDENTS WHO ARE
LIVING WITH AND ENTIRELY DEPENDENT UPON HIM FOR CHIEF SUPPORT:
ANDREA, CHILD WITH HIS EX-GIRLFRIEND
BARBARA, LEGITIMATE CHILD OF HIS SISTER, LEGALLY ADOPTED BY MR.
MAASIKASO
CARIDAD, MOTHER, 85 YEARS OLD, WIDOW, BEDRIDDEN
DONATA, GODMOTHER, 80 YEARS OLD
A) ANDREA ONLY
B) ANDREA AND BARBARA
C) ANDREA, BARBARA AND CARIDAD
D) ANDREA, BARBARA, CARIDAD AND DONATA
A) P20,000
B) 25,000
C) 50,000
D) 75,000
A) P8,000
B) 32,000
C) 25,000
D) 50,000
TORRES, FATHER, LIVING WITH HIM. REMY MARTIN IS GIVING 60% OF THE
ENTIRE SUPPORT NEEDED, THE OTHER 40% IS BEING FURNISHED BY HIS
SISTER, CHEVAS REGAL.
A) P200,000
B) 96,000
C) 64,000
D) NONE
A) P150,000
B) 57,000
C) 64,000
D) 73,000
23. IN 2009, PIDOL’S WIFE DIED OF A CAR ACCIDENT. HIS DEPENDENTS ARE
AS FOLLOWS:
CHILDREN STATUS
A 22 Y/O, EMPLOYED ON JULY 12, 2009
B 21 Y/O ON JANUARY 2, 2009
C 18 Y/O, MARRIED ON JANUARY 31, 2009
D 17 Y/O, GAINFULLY EMPLOYED ON OCTOBER 1, 2009
E 15 Y/O, AFFLICTED WITH SORE EYES ON MAY 6, 2009
F 13 DIED OF AN ACCIDENT IN 2009
G BROTHER, 28 Y/O PARALYTIC
A) P75,000
B) 125,000
C) 100,000
D) 32,000
24. FOR THE YEAR 2010, PIDOL CAN CLAIM ADDITIONAL EXEMPTIONS OF-
A) P8,000
B) 16,000
C) 25,000
D) 100,000
A) P32,000
B) 63,000
C) 150,000
D) 100,000
A) P120,000
B) 225,000
C) 95,000
D) 87,000
A) I AND II
B) III AND IV
C) I, II AND IV
D) I, II, III AND IV
A) TRUE, FALSE
B) TRUE, TRUE
C) FALSE, TRUE
D) FALSE, FALSE
A) P97,600
B) 97,000
C) 122,000
D) 122,600
A) RESIDENT ONLY
B) NON-RESIDENT CITIZEN
C) RESIDENT CITIZEN
D) NON-RESIDENT ALIEN
A) YES, NO
B) YES, YES
C) NO, YES
D) NO, NO
A) P261,000
B) 334,000
C) 291,000
D) 306,000
36.THE TAXABLE INCOME IF SHARON IS A NON-RESIDENT ALIEN ETB,
MARRIED WITH FIVE(5) DEPENDENT CHILDREN-
A) P243,000
B) 56,000
C) 74,000
D) NONE
A) P83,500
B) 63,500
C) 18,500
D) 334,000
ELVIS AND MADONNA, HUSBAND AND WIFE, HAVE THE FOLLOWING DATA
IN 2009:
ELVIS MADONNA
COMPENSATION INCOME P125,000 P60,000
RENT INCOME(NET OF 5% WHT) 76,000
ROYALTIES ON BOOKS 70,000
DEPENDENT CHILDREN 6
WHT ON COMPENSATION 10,000
A) P3,000
B) 10,200
C) (P5,500)
D) 8,700
A) P14,000
B) 7,000
C) NONE
D) NO ANSWER
A) RESIDENT ALIEN
B) NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS
C) NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS
D) NON-RESIDENT FOREIGN CORPORATION
A) P28,125
B) 17,125
C) 44,500
D) 41,360
44. THE INCOME TAX PAYABLE BY ROD IF HE AVAILED OF THE OPTIONAL
STANDARD DEDUCTIONS-
A) P4,500
B) 50,225
C) 51,050
D) 51,650
A) P31.32
B) 18,277.72
C) 363.16
D) 8,687.85
A) P448.29
B) 1,431.45
C) (P983.19)
D) NONE
47. MRS. EVAN OWNS A PARCEL OF LAND WORTH P500,000 WHICH SHE
INHERITED FROM HER FATHER IN 2006 WHEN IT WAS WORTH P300,000. HER
FATHER PURCHASED IT IN 1986 FOR P100,000. IF MRS. EVAN TRANSFERS
THIS PARCEL OF LAND FOR HER WHOLLY OWNED CORPORATION IN
EXCHANGE FOR SHARES OF STOCKS OF SAID CORPORATION WORTH
P450,000. MRS. EVAN’S TAXABLE GAIN IS-(RPCPA)
A) ZERO
B) P50,000
C) 150,000
D) 350,000
48. MR. JOHNNY DELA CRUZ TRANSFERRED HIS COMMERCIAL LAND WITH
A COST OF P500,000 BUT WITH A FAIR MARKET VALUE OF P750,000 TO JDC
CORPORATION IN EXCHANGE OF THE STOCKS OF THE CORPORATION WITH
PAR VALUE OF P1,000,000. AS A RESULT OF THE TRANSFER, HE BECAME THE
MAJOR STOCKHOLDER OF THE CORPORATION.-(RPCPA)
49. MR. SANTOS PURCHASED A LIFE ANNUITY FOR P100,000 WHICH WILL
PAY HIM P10,000 A YEAR. THE LIFE EXPECTANCY OF MR. SANTOS IS 12
YEARS. WHICH OF THE FOLLOWING WILL MR. SANTOS BE ABLE TO
EXCLUDE FROM HIS GROSS INCOME?-(RPCPA)
A) P100,000
B) 10,000
C) 20,000
D) 120,000
A) TO A GIFT
B) TO A CAPITAL CONTRIBUTION
C) TO A DONATION INTER VIVOS
D) TO A PAYMENT OF INCOME
A) P50,000
B) 270,400
C) 270,000
D) 240,000
A) P5,000
B) 10,000
C) 15,000
D) NONE
A) P50,000, 50,000
B) 12,500, 37,500
C) 37,500, 12,500
D) NONE, 50,000
55. USING THE SAME DATA IN NUMBER 54 ABOVE, EXCEPT THAT 50% OF
THE FACE VALUE OF THE NOTE IS PAYABLE IN 2009 WHILE THE
REMAINING 50% IS PAYABLE IN 2010?
56.
2009
AMOUNT RECOVERED 40,000 30,000 40,000 85,000
A) I ONLY
B) I AND II
C) II AND III
D) III ONLY
IT IS ALSO STIPULATED IN THE CONTRACT THAT THE LESSEE WILL PAY THE
P1,500 ANNUAL REAL PROPERTY TAX ON THE LAND.
A) P12,000
B) 13,500
C) 24,000
D) 25,500
A) P13,500
B) 1,500
C) 1,013,500
D) 1,000,000
A) P13,500
B) 1,500
C) 1,013,500
D) 88,500
61. HOW MUCH IS THE DEDUCTIBLE EXPENSE OF THE LESSEE IN 2009?
A) P138,500
B) 63,500
C) 125,000
D) 13,500
62. ASSUMING THAT DUE TO THE FAULT OF THE LESSEE, THE LEASE
CONTRACT WAS TERMINATED ON JANUARY 1, 2011, HOW MUCH
INCOME IS TO BE REPORTED BY THE LESSOR IN 2011?
A) P763,500
B) 750,000
C) 88,500
D) 1,013,500
IT WAS FURTHER AGREED THAT LCB WILL PAY THE REAL ESTATE TAX ON
THE LAND ASSESSED AT P3,000 ANNUALLY. ON JANUARY 2, 2006, LCB PAID
ARTURO P120,000 CONSISTING OF RENTAL COVERING THE 2 YEARS
PERIOD(24 MONTHS) FROM 2006 TO 2007.
A) P60,000
B) 123,000
C) 120,000
D) 63,000
A) P84,429
B) 105,857
C) 81,429
D) 21,429
A) P165,857
B) 162,857
C) 114, 429
D) 84,429
A) P105,857
B) 102,857
C) 114,429
D) 84,429
A) P1,443,000
B) 1,485,857
C) 1,440,000
D) 1,482,857
70. ON JANUARY 1, 2006, ATO LEASED A LOT TO BENGBENG WITH A
BUILDING ERECTED THEREON FOR A PERIOD OF 10 YEARS. THE
LEASE CONTRACT PROVIDED THAT BENGBENG WILL PAY THE
FOLLOWING:
A) P75,000
B) 740,000
C) 140,000
D) 190,000
A) P215,000
B) 220,000
C) 225,000
D) 190,000
A) ZERO
B) P500,000
C) 10,000
D) 50,000
A) P500,000
B) 200,000
C) 300,000
D) NONE
A) P500,000
B) 100,000
C) 400,000
D) NONE
77. IF PAUL DIES ON THE 5TH YEAR, HIS BENEFICIARY WILL REPORT AN
INCOME OF-
A) P500,000
B) 150,000
C) 260,000
D) EXEMPT
78. SUPPOSE PAUL DIES ON THE 5TH YEAR AND HIS BENEFICIARY WAS
OFFERED TO RECEIVE P150,000 IN LUMP SUM OR TO RECEIVE IT AT
P20,000 A MONTH FOR TEN(10) MONTHS AND THE BENEFICIARY
CHOSE THE 2ND OPTION, HE WILL REPORT AN INCOME OF-
A) P500,000
B) 150,000
C) 50,000
D) EXEMPT
79. SUPPOSE PAUL SURVIVED THE POLICY AND WAS ABLE TO RECEIVE
P500,000, HE WILL REPORT AN INCOME OF-
A) P500,000
B) 260,000
C) 150,000
D) NONE
81. MR. BASIL INSURED HIS LIFE WITH HIS ESTATE AS BENEFICIARY.IN
2008, AFTER MR. BASIL HAD PAID P65,000 IN PREMIUM, HE ASSIGNED
THE POLICY TO MR. JOSE LLAMADO FOR P60,000, AND MR. LLAMADO
CONTINUED PAYING THE PREMIUMS. MR. BASIL DIED AND MR.
LLAMADO COLLECTED THE TOTAL PROCEEDS OF P200,000. MR.
LLAMADO, AFTER THE ASSIGNMENT AND BEFORE MR. BASIL’S
DEATH, PAID TOTAL PREMIUMS OF P80,000. AS A RESULT OF THE
ABOBE TRANSACTION, MR. LLAMADO-(RPCPA)
A) P4,750,000
B) 1,500,000
C) 1,750,000
D) 3,250,000
A) ZERO
B) P20,000
C) 60,000
D) 155,000
A) ZERO
B) P40,000
C) 70,000
D) 50,000
A) P190,000
B) 680,000
C) 830,000
D) 240,000
86. LYDIA WAS HIT BY A WAYWARD BUS WHILE ON HER WAY HOME. SHE
SURVIVED BUT HAD TO PAY P150,000 FOR HER HOSPITALIZATION.
SHE WAS UNABLE TO WORK FOR SIX(6) MONTHS WHICH MEANT
THAT SHE DID NOT RECEIVE HER USUAL SALARY OF P10,000 A
MONTH OR A TOTAL OF P60,000. SHE SUED THE BUS COMPANY AND
WAS ABLE TO OBTAIN A FINAL JUDGMENT AWARDING HER P150,000
AS REIMBURSEMENT FOR HER HOSPITALIZATION, P60,000 FOR THE
SALARIES SHE FAILED TO RECEIVE WHILE HOSPITALIZED, AND
P250,000 AS MORAL DAMAGES FOR HER PAIN AND SUFFERING. SHE
WAS ABLE TO COLLECT IN FULL FROM THE JUDGMENT.
HOW MUCH INCOME DID SHE REALIZE WHEN SHE COLLECTED FROM THE
JUDGMENT?
A) P460,000
B) 250,000
C) 60,000
D) 400,000
A) P40,000 IN 2008
B) 5,000 IN 2008
C) 5,000 IN 2007
D) NONE
SHEILA WAS SEPARATED DUE TO HER FAILING EYESIGHT. SHE WAS GIVEN
P250,000 AS SEPARATION PAY.
ALL OF THE THREE(3) WERE NOT QUALIFIED TO RETIRE UNDER THE BIR-
APPROVED PENSION PLAN OF THE CORPORATION.
91. DURING THE YEAR, BEN RECEIVED A COCONUT LAND FROM HIS
MOTHER BY WAY OF AN INTER-VIVOS DONATION. THE LAND HAD A
MARKET VALUE OF P700,000 AND EARNING AN AVERAGE ANNUAL
INCOME OF P50,000.
A) P3,500,000
B) 3,350,000
C) 330,000
D) 80,000
A) P300,000
B) 400,000
C) 600,000
D) NONE
A) NO, YES, NO
B) NO, YES, YES
C) YES, NO, NO
D) YES, NO, YES
94. ON OCTOBER 1, 2009, GILDA INHERITED PROPERTIES WORTH
P3,000,000 FROM HER MOTHER. THE PROPERTIES ARE EARNING
INCOME OF P90,000 A MONTH.
A) P3,090,000
B) 3,000,000
C) 3,270,000
D) 270,000
A) P48,750
B) 46,500
C) 173,750
D) 171,000
99. AFTER WORKING FOR 3O YEARS AND DUE TO OLD AGE, RAFFY
RETIRED FROM HIS EMPLOYMENT ON DECEMBER 31, 2008 AS A
RANK-AND-FILE EMPLOYEE OF TUMAGAY CORPORATION. AS A
CONSEQUENCE OF HIS RETIREMENT, HE RECEIVED THE FOLLOWING
FROM HIS EMPLOYER:
BASED ON THE ABOVE DATA, THE AMOUNT SUBJECT TO TAX OF RAFFY IS-
A) P250,000
B) 257,500
C) 252,500
D) 1,037,500
A) P5,100
B) 34,100
C) 29,000
D) NONE
A) P144,000
B) 150,000
C) 109,900
D) 138,900
A) HOLIDAY PAY
B) OVERTIME PAY
C) NIGHT SHIFT DIFFERENTIAL PAY
D) NONE OF THE ABOVE
A) ALCANZO ONLY
B) ALCANZO AND BARRIENTOS
C) ALCANZO, BARRIENTOS AND CORPORAL
D) BARRIENTOS AND CORPORAL
MULTIPLE CHOICE
A) DOMESTIC CORPORATIONS
B) RESIDENT CORPORATIONS
C) RESIDENT FOREIGN CORPORATIONS ENGAGED IN TRADE OR
BUSINESS IN THE PHILIPPINES
D) RESIDENT FOREIGN CORPORATION NOT ENGAGED IN TRADE OR
BUSINESS IN THE PHILIPPINES
A) DOMESTIC CORPORATION
B) RESIDENT FOREIGN CORPORATION
C) NON-PROFIT CEMETERY
D) NON-RESIDENT FOREIGN CORPORATION
A) P241,020
B) 219,320
C) 803,400
D) 259,490
110. BASED ON THE DATA IN NUMBER 109 ABOVE, THE TOTAL
FINAL TAXES PAYABLE ON RGF CORPORATION IS-
A) P19,000
B) 21,500
C) 33,250
D) 3,000
A) P886,000
B) 1,156,000
C) 641,000
D) 616,000
A) P51,475
B) 72,600
C) 103,120
D) 148,100
A) P40,800
B) 36,720
C) 28,300
D) 21,500
A) P19,200
B) 28,320
C) 31,800
D) 26,000
116. THE INCOME TAX PAYABLE AT THE END OF THE THIRD
QUARTER IS-
A) P52,000
B) 62,400
C) 12,640
D) NONE
A) P25,090
B) 63,750
C) 75,900
D) 68,610
A) P21,000
B) 14,000
C) 10,400
D) 29,440
A) CONSTRUCTIVE RECEIPT
B) TAX BENEFIT RULE
C) END RESULT DOCTRINE
D) PREDOMINANCE TEST
A) P343,000
B) 147,000
C) 576,000
D) 160,000
A) P346,000
B) 147,000
C) 1,203,200
D) 345,667
A) P288,000
B) 17,500
C) 160,000
D) 30,000
A) STOCK DIVIDENDS
B) PROPERTY DIVIDENDS
C) CASH DIVIDENDS
D) LIQUIDATING DIVIDENDS
A) STOCK DIVIDEND
B) CASH DIVIDEND
C) LIQUIDATING DIVIDEND
D) INDIRECT DIVIDEND
A) 2% OF GROSS INCOME
B) 10% OF GROSS INCOME
C) 5% OF GROSS INCOME
D) 15% OF GROSS INCOME
A) 2005
B) 2006
C) 2008
D) 2009
A) P7,700
B) 7,040
C) 6,660
D) 12,640
2009 2010
SALES 1,700,000 2,300,000
COST OF SALES 1,050,000 1,425,000
OPERATING EXPENSES 615,000 480,000
A) P13,000
B) 12, 250
C) 35,000
D) 10,500
A) FALSE, FALSE
B) FALSE, TRUE
C) TRUE, FALSE
D) TRUE, TRUE
142. ADY CORPORATION HAS THE FOLLOWING DATA DURING THE
YEAR:
1ST QTR 2ND QTR
NORMAL INCOME TAX P10,000 12,000
MCIT 8,000 25,000
TAXES WITHHELD DURING THE QTR 2,000 3,000
EXCESS WHT PRIOR YEAR 1,000
A) P7,000
B) 4,000
C) 3,000
D) 2,000
A) P15,000
B) 20,000
C) 27,000
D) 23,000
A) P10,500
B) 3,000
C) 9,000
D) 30,000
A) P43,750
B) 70,000
C) 26,250
D) 40,000
147. THE INCOME TAX PAYABLE BY IZA CORPORATION FOR 2009 IS:
A) P150,000
B) 48,000
C) 148,750
D) 123,750
A) INSURANCE COMPANIES
B) BUSINESS PARTNERSHIPS
C) BANKS
D) CLOSELY-HELD COMPANIES
A) P234,000
B) 265,600
C) 275,500
D) 249,000
A) P81,800
B) 93,000
C) 301,000
D) 70,000
A) P81,500
B) 93,800
C) 91,500
D) NONE
A) P537,000
B) 434,540
C) 741,000
D) 279,000
ARE THE INCOME OF THE INHERITED PROPERTIES AND THE BUS SUBJECT
TO TAX?
PARTNERS BING AND BONG SHARE PROFITS AND LOSSES IN THE RATIO OF
55% AND 45%, RESPECTIVELY.
A) P218,750
B) 187,500
C) 165,000
D) 192,500
167. THE FINAL TAXES ON THE RESPECTIVE SHARE OF BING AND BONG IN
THE PARTNERSHIP INCOME-
BING BONG
A) P25,740.00 21,060.00
B) 31,157.50 25,492.50
C) 24,227.50 19,822.50
D) 30,250.00 55.045.00
PING PONG
SHARE IN PROFIT AND LOSS RATIO 75% 25%
INCOME FROM OTHER BUSINESSES P125,000 P325,000
EXPENSES 80,000 190,000
AMOUNT WITHDRAWN
FROM PARTNERSHIP 30,000 12,500
FILING STATUS MARRIED UNMARRIED
DEPENDENT CHILDREN NONE 2
A) P72,600
B) NONE
C) 44,550
D) 45,900
A) P20,500
B) 18,500
C) 11,500
D) 59,000
A) P12,500
B) 48,000
C) 16,500
D) 24,000
A) P3,000
B) 4,000
C) 7,000
D) 22,000
A) P17,000
B) 14,600
C) 22,200
D) 15,200
A) LEGATEE
B) DEVISEE
C) TRUSTOR
D) BENEFICIARY
A) LEGATEE
B) DEVISEE
C) TRUSTOR
D) BENEFICIARY
A) P30,000
B) 2,500
C) 5,500
D) 50,000
A) A WILL
B) A TRUST
C) AN INHERITANCE
D) PACTO DE RETRO
DURING THE YEAR, LUCAS CREATED TWO SEPARATE FUNDS FOR HIS SON
BARABAS, AND APPOINTED CAIPAS AND JUDAS AS TRUSTEES, THE
BUSINESS INCOME OF THE TRUSTS ARE AS FOLLOWS:
A) P143,000
B) 23,250
C) 175,000
D) 300,000
CAIPAS JUDAS
A) 24,375 24,375
B) 24,375 40,625
C) 26,000 39,000
D) 65,000 23,250
184. UNDER SECTION 39(B) OF THE TAX CODE, HOW MUCH SHALL BE
TAKEN INTO ACCOUNT IN COMPUTING NET INCOME, IF A GAIN IS
REALIZED BY AN INDIVIDUAL TAXPAYER FROM THE SALE OR EXCHANGE
OF CAPITAL ASSETS( OTHER THAN REAL PROPERTIES AND SHARES OF
STOCKS) HELD FOR MORE THAN 12 MONTHS?-(RPCPA)
185. LOTS BEING RENTED WHEN SUBSEQUENTLY SOLD ARE CLASSIFIED AS-
(RPCPA)
A) CAPITAL ASSETS
B) LIQUID ASSETS
C) ORDINARY ASSETS
D) FIXED ASSETS
A) INDIVIDUAL
B) ESTATES
C) CORPORATION
D) TRUSTS
A) P484,000
B) 444,000
C) 435,500
D) 447,000
191. JOSE SIO, SINGLE, HAD THE FOLLOWING DATA ON INCOME AND
LOSSES:
2008 2009
ORDINARY BUSINESS INCOME P56,700 P60,800
INTEREST ON TIME DEPOSIT WITH PNB 2,000 3,000
SHORT-TERM CAPITAL GAIN 5,000 8,500
LONG-TERM CAPITAL GAIN 3,600 5,200
SHORT-TERM CAPITAL LOSS 8,000 2,900
LONG-TERM CAPITAL LOSS 4,400 -
A) P58,700
B) 53,300
C) 36,700
D) 56,700
A) P15,600
B) 69,000
C) 36,000
D) 45,600
A) ZERO
B) 3,000
C) 4,000
D) 8,000
194. ROSE, SINGLE, HAD THE FOLLOWING DATA ON INCOME AND LOSSES:
2008 2009
NET INCOME P25,000 P95,000
CAPITAL GAINS 8,000 40,000
CAPITAL LOSSES 40,000 5,000
A) P5,000
B) ZERO
C) P(25,000)
D) (57,000)
A) P78,000
B) 55,000
C) 115,000
D) 10,000
A) WASH SALE
B) SHORT SALE
C) AUCTION SALE
D) RESCISSIBLE SALE
198. ABC BOUGHT FROM XYZ CORPORATION TEN SHARES OF STOCK. SIXTY
DAYS THEREAFTER, THE CORPORATION WAS ADJUDGED BANKRUPT AND
ITS STOCK AS WORTHLESS. THE LOSS OF ABC TO BE REPORTED FOR
INCOME TAX PURPOSES IS CLASSIFIED AS:-(RPCPA)
A) A WAGERING LOSS
B) NON-DEDUCTIBLE LOSS FOR INCOME TAX PURPOSES
C) SHORT-TERM CAPITAL LOSS
D) CASUALTY LOSS
199. ON CAPITAL GAINS TAX ON REAL PROPERTY, WHICH OF THE
FOLLOWING STATEMENTS IS NOT CORRECT?-(RPCPA)
200. VIOLETA SOLD HER PRINCIPAL RESIDENCE FOR P5,000,000 WHEN ITS
FAIR MARKET VALUE WAS P6,000,000. THE HOUSE WAS PURCHASED FIVE(5)
YEARS AGO FOR P3,000,000. OUT OF THE PROCEEDS OF P5,000,000, VIOLETA
UTILIZED THE P4,000,000 FOR THE PURCHASE OF A NEW RESIDENTIAL
HOUSE.
A) P360,000
B) 300,000
C) 72,000
D) 60,000
201. BASED ON THE PROBLEM IN NUMBER 200 ABOVE, WHAT IS THE COST
BASIS OF THE NEW RESIDENCE?
A) P3,000,000
B) 2,400,000
C) 4,000,000
D) 5,000,000
DURING THE YEAR, MARIA HAD A NET INCOME FROM BUSINESS (OTHER
THAN THE SALE OF THE PROPERTIES ABOVE) IN THE AMOUNT OF P5,000.
A) P32,000
B) 38,000
C) 22,200
D) 42,200
203. ASSUMING THAT THE NET INCOME OF MARIA IN 2009 WAS P130,000
WHICH INCLUDES A CAPITAL GAIN OF P6,000. THE TAXABLE INCOME
BEFORE PERSONAL EXEMPTION IN 2009 IS-
A) P125,000
B) 130,000
C) 124,200
D) 120,000
ON AUGUST 15, 2009, MR. CRUZ SOLD A 500 SQUARE METER RESIDENTIAL
HOUSE FOR P3,000,000. THE HOUSE WAS ACQUIRED IN 2000 FOR P2,000,000.
ON THE DATE OF SALE, THE FAIR MARKET VALUE OF THE HOUSE AS
SHOWN IN THE REAL PROPERTY DECLARATION WAS P2,500,000 AND THE
ASSESSED VALUE AMOUNTED TO P2,200,000. THE ZONAL VALUE WAS P7,000
PER SQUARE METER.
A) P180,000
B) 120,000
C) 150,000
D) 210,000
205. THE CAPITAL GAINS TAX OF MR. CRUZ IF THE PROCEEDS OF SALE WAS
UTILIZED IN ACQUIRING A NEW RESIDENCE-
A) P210,000
B) 150,000
C) 180,000
D) ZERO
A) P210,000
B) 150,000
C) 180,000
D) ZERO
207. THE CAPITAL GAINS TAX PAYABLE ASSUMING THAT MR. CRUZ WILL
UTILIZE ONLY P1,500,000 OF THE PROCEEDS IN ACQUIRING A NEW
RESIDENCE?
A) P90,000
B) 210,000
C) ZERO
D) 105,000
A) P18,000
B) 18,900
C) 7,200
D) 9,000
A) P12,500
B) (75,000)
C) 148,500
D) (25,000)
A) P2,250
B) 2,625
C) 14,000
D) 11,375
213. ROLLY SOLD 1,000 NOT LISTED AND TRADED SHARES OF STOCKS. THE
DATA OF WHICH ARE AS FOLLOWS:
A) P13,000
B) 14,000
C) 9,700
D) 12,850
214. NARDA SOLD THE FOLLOWING SHARES OF STOCKS DURING THE YEAR:
A) P3,000
B) 32,000
C) 11,550
D) 3,150
215. THE CAPITAL GAINS TAX ON THE FEB. 13, 2009 SALE IS-
A) P2,750
B) 1,375
C) 675
D) 55,000
216. THE CAPITAL GAINS TAX ON THE APRIL 5, 2009 SALE IS-
A) P10,400
B) 5,400
C) 5,200
D) ZERO
217. THE CAPITAL GAINS TAX/REFUND ON THE JULY 20, 2009 SALE IS-
A) P3,000
B) (3,000)
C) 1,500
D) ZERO
220. MISS BEAUTY, WHOSE TAXABLE YEAR IS THE CALENDAR YEAR, HAD
THE FOLLOWING STOCK TRANSACTIONS:
CAPITAL LOSS
ON 2 WEEKS OPTION CONTRACT______ P5,000
CAPITAL GAIN
ON SALE OF BONDS(HOLDING PERIOD: 6 MOS.)_____ 6,000
LOSS ON SALE OF DELIVERY TRUCK HELD
FOR 3 ½ YEARS____ 40,000
GAIN ON SALE OF PERSONAL CAR HELD
FOR 5 YEARS______ 16,000
CAPITAL GAIN ON DIRECT SALE TO BUYERS
OF SHARES OF STOCKS___ 4,000
SALE OF 2-YEAR OLD RESIDENTIAL HOUSE
(COST:P540,000)____ 550,000
IN 2008, MAUI HAD A NET INCOME OF P5,000 AND A CAPITAL LOSS OF P7,500
A) P17,000
B) 9,000
C) 2,000
D) (7,000)
A) P7,500
B) ZERO
C) 9,000
D) 5,000
A) P150,000
B) 120,000
C) 100,000
D) ZERO
A) ZERO
B) P157,500
C) 150,000
D) 300,000
227. THE WIDOW OF YOUR BEST FRIEND HAS JUST BEEN PAID P1,000,000 ON
ACCOUNT OF THE LIFE INSURANCE POLICY OF THE DECEASED HUSBAND.
SHE ASKS YOU WHETHER SHE SHOULD DECLARE THE AMOUNT FOR
INCOME TAX PURPOSES OR FOR ESTATE TAX PURPOSES-(RPCPA)
A)MEDICAL EXPENSES
B)CONTRIBUTION
C)REPRESENTATION
D)HIGH SCHOOL FEE
232. ALL OF THE FOLLOWING, EXCEPT ONE, ARE NOT DEDUCTIBLE FROM
GROSS INCOME
A) BUILDING P30,000
CASH P30,000
B) LEASE EXPENSE-LESLIE 30,000
CASH 30,000
C) REPAIRS EXPENSE 30,000
CASH 30,000
D) NO ENTRY
A) BUILDING P60,000
CASH P60,000
B) REPAIRS EXPENSES 60,000
CASH 60,000
C) ALLOWANCE FOR DEP’N 60,000
CASH 60,000
D) NO ENTRY
238. SUPPOSE THE MAJOR REPAIR INCREASED THE VALUE NBY P40,000 AND
IT ALSO PROLONGED THE LIFE OF THE ASSET, THE ACCOUNTING ENTRY TO
RECORD THE REPAIR IN THE BOOKS OF LEXUS CORPORATION IS-
C) BUILDING 40,000
ALLOWANCE FOR DEPRECIATION 20,000
CASH 60,000
D) NONE OF THE ABOVE
IN THE SAME YEAR, HIS BANK DEPOSIT WITH PNB EARNED AN INTEREST
INCOME OF P2,000. DURING THE YEAR, HE INCURRED AN INTEREST
EXPENSE ON UNPAID BUSINESS TAX OF P600.
THE DEDUCTIBLE INTEREST EXPENSE OF MANG OTANG IN 2009 IS-
A) P14,240
B) 14,760
C) 13,600
D) 14,940
A) P14,375
B) 15,000
C) 10,781.25
D) NONE
ON JUNE 20, 2009, HE FILED HIS INCOME TAX RETURN FOR 2008 CLAIMING,
AMONG OTHERS, A DEDUCTION FOR INTEREST AMOUNTING TO P1,500.
ON JUNE 5, 2009, THE TAXPAYER FILED AN AMENDED INCOME TAX RETURN
FOR THE SAME CALENDAR YEAR 2008, CLAIMING THEREIN AN
ADDITIONAL DEDUCTION IN THE AMOUNT OF P20,000 REPRESENTING
INTEREST PAID ON THE DONOR’S TAX.
THE CIR POINTED OUT THAT A TAX IS NOT INDEBTEDNESS AND THAT
THERE IS A FUNDAMENTAL DISTINCTION BETWEEN A “TAX” AND A “DEBT”.
ACCORDING TO THE CIR, THE DEDUCTIBILITY OF INTEREST ON
INDEBTEDNESS FROM A PERSON’S INCOME TAX CANNOT EXTEND TO
INTEREST ON TAXES.
A) YES, YES
B) NO, YES
C) YES, NO
D) NO,NO
A) ESTATE TAX
B) FRANCHISE TAX
C) DONOR’S TAX
D) SPECIAL ASSESSMENT
A) NON-RESIDENT ALIENS
B) FOREIGN CORPORATIONS
C) RESIDENT ALIENS WITH INCOME DERIVED SOLELY FROM SOURCES
WITHIN THE PHILIPPINES
D) BENEFICIARIES OF THE ESTATES AND TRUSTS
A) DOMESTIC CORPORATIONS
B) MEMBERS OR BENEFICIARIES OF PARTNERSHIP OR TRUST
C) RESIDENT FILIPINO CITIZENS
D) NON-RESIDENT ALIENS
A) P105,000
B) 60,000
C) 90,000
D) 110,000
256. GLOBAL CORPORATION, A DOMESTIC CORPORATION , HAS THE
FOLLOWING DATA FOR THE CALENDAR YEAR. THE CORPORATION
SIGNIFIED ITS INTENTION TO CLAIM TAX CREDITS ON INCOME TAXES PAID
TO THE FOREIGN COUNTRIES:
GROSS ALLOWABLE
COUNTRY INCOME DEDUCTIONS TAX PAID
A) P75,000
B) 65,000
C) 60,000
D) 72,000
257. PENNY GARCIA , SINGLE HAS THE FOLLOWING DATA DURING THE
YEAR:
A) P51,500
B) 5,725
C) 12,800
D) 1,650
258. IN NUMBER 257, IF YOU ARE THE TAXPAYER, WILL YOU OPT TO CLAIM
THE FOREIGN TAX PAID AS TAX CREDIT OR AS A DEDUCTION?
A) MAX ONLY
B) JESS ONLY
C) BOTH OF THEM
D) NEITHER OF THEM
A) P1,000,000
B) 2,615,000
C) 1,615,000
D) 1,535,000
A) NONE
B) P200,000
C) 185,000
D) 215,000
264. REFER TO ITEM 263 DATA. THE TAXPAYER CAN CLAIM S DEDUCTIBLE
LOSS OF-(RPCPA)
A) P1,000,000 IN 2008
B) 1,000,000 IN 2009
C) 500,000 IN 2008
D) 500,000 IN 2009
A) P1,928,000
B) 2,000,000
C) ZERO
D) 1,428,000
PROPERTY A PROPERTY B
TYPE OF LOSS TOTAL PARTIAL
COST 800,000 1,200,000
ACCUM. DEP’N 550,000 600,000
INSURANC RECOVERY 200,000 150,000
REPLACEMENT COST OF
DAMAGED PORTION - 500,000
269. BASED ON THE DATA IN NUMBER 268 ABOVE, THE DEDUCTIBLE LOSS
ON PROPERTY B IS-
A) P600,000
B) 350,000
C) 500,000
D) 1,200,000
YEAR 2009:
GROSS INCOME FROM SERVICES 3,560,000
OPERATING EXPENSES 1,250,000
A) (P131,250)
B) (119,000)
C) (180,000)
D) (250,000)
A) P1,335,000
B) 2,150,000
C) 1,400,000
D) 1,435,000
A) P238,500
B) 278,250
C) 130,462.50
D) 97,387.50
A) P220,000
B) 280,000
C) 200,000
D) 210,000
A) P97,500
B) 35,000
C) 55,000
D) 110,000
278. STATEMENT 1: THE TERM “NET OPERATING LOSS” SHALL MEAN THE
EXCESS OF ALLOWABLE DEDUCTION OVER GROSS INCOME OF THE
BUSINESS IN A TAXABLE YEAR.
A) STATEMENT 1 ONLY
B) STATEMENTS 1 AND 2
C) STATEMENT 3 ONLY
D) NONE
A) (P575,000)
B) (407,000)
C) (427,000)
D) 1,068,000
A) ZERO
B) 274,400
C) (132,600)
D) 254,400
A) P18,000
B) ZERO
C) 170,600
D) 18,000
NUMBERS 282 AND 283 ARE BASED ON THE FOLLOWING INFORMATION:
A) P261,400
B) ZERO
C) 274,400
D) 1,286,400
283. THE TAXABLE INCOME/OPERATING LOSS IN 2009 OF BETTY IS-
A) P190,700
B) 939,580
C) 248,200
D) 232,500
A) ZERO
B) P62,000
C) 60,000
D) 90,000
285. NINI COMPANY WAS MERGED INTO OTOY COMPANY. NINI COMPANY
TRANSFERRED ALL ITS PROPERTIES WITH A BOOK VALUE OF P4,000,000 TO
OTOY COMPANY FOR WHICH IT RECEIVED SHARES OF THE LATTER WITH A
FAIR MARKET VALUE OF P3,600,000. SANKO WAS A STOCJHOLDER OF NINI
COMPANY (WHICH HE ACQUIRED AT A COST OF P500,000) WHEN THE
MERGER WAS EFFECTED AND RECEIVED SHARES OF OTOY COMPANY WITH
A FAIR MARKET VALUE OF P360,000. THE AMOUNT OF LOSS DEDUCTIBLE BY
NINI COMPANY IS-
A) P400,000
B) 4,000,000
C) 140,000
D) ZERO
A) P400,000
B) 140,000
C) 500,000
D) ZERO
A) P1,000,000
B) 960,000
C) 40,000
D) ZERO
288. SHASHA, SINGLE, HAS THE FOLLOWING DATA IN 2008 AND 2009:
2009
BAD DEBT
RECOVERED 70,000 60,000 30,000
289. THE FOLLOWING WERE TAKEN FROM THE INCOME STATEMENT OF ABC
CORPORATION FOR THE TAXABLE YEAR 2009:-((RPCPA)
ADDITIONAL INFORMATION:
A) P280,000
B) 260,000
C) 330,000
D) 340,000
A) P35,795.45
B) 43,750
C) 49,431.82
D) 31,250
A) P151,000
B) 149,000
C) 141,000
D) 139,000
A) P6,000
B) 7,000
C) 3,000
D) 10,000
A) P92,000
B) 93,500
C) 88,500
D) 100,000
A) P550,000
B) 600,000
C) 560,000
D) 570,000
A) P670,000
B) 640,000
C) 580,000
D) 570,000
A) P15,000
B) ZERO
C) 10,000
D) 100,000
A) P20,000
B) 30,000
C) 55,000
D) 55,500
A) P870,000
B) 814,500
C) 475,320
D) 503,400
A) P550,320
B) 814,500
C) 542,520
D) 889,500
A) ACCRUAL BASIS
B) CASH BASIS OR CASH RECEIPTS AND DISBURSEMENTS METHOD
C) HYBRID METHOD
D) CROP YEAR BASIS
A) CASH BASIS
B) CROP YEAR BASIS
C) CONSTRUCTIVE RECEIPT OF INCOME
D) ACCRUAL METHOD
A) P50,000
B) 200,000
C) 100,000
D) 150,000
310. BASED ON THE DATA IN NO. 309 ABOVE, GORDON, USING CASH
METHOD CAN DEDUCT AN EXPENSE OF-
A) P50,000
B) 200,000
C) 100,000
D) 150,000
A) ACCRUAL BASIS
B) CASH BASIS
C) PERCENTAGE OF COMPLETION METHOD
D) HYBRID METHOD
314. ALL OF THE FOLLOWING, EXCEPT ONE, ARE NOT TAKEN INTO
ACCOUNT IN DETERMINING THE CORRECT AMOUNT OF INITIAL PAYMENTS
A) COMMISSIONS
B) OTHER SELLING EXPENSES
C) INSTALLMENT PAYMENTS IN THE YEAR OF SALE
D) GROSS PROFIT
A) P50,000
B) 100,000
C) 300,000
D) 400,000
A) P50,000
B) 25,000
C) 37,500
D) 12,500
A) P50,000
B) 25,000
C) 37,500
D) 12,500
A) P100,000
B) 250,000
C) 150,000
D) 200,000
A) P150,000
B) 550,000
C) 700,000
D) 250,000
A) P150,000
B) 550,000
C) 700,000
D) 250,000
322. THE FINAL TAX PAYABLE IN 2008 IS-
A) P42,000
B) 25,200
C) 9,000
D) NONE
A) P42,000
B) 25,200
C) 16,800
D) NONE
A) P45,000
B) 90,000
C) 200,000
D) NONE
A) P200,000
B) 155,000
C) 45,000
D) NONE
A) P75,000
B) 300,000
C) 45,000
D) 30,000
A) P6,500
B) 4,000
C) 5,000
D) 5,500
A) P6,500
B) 4,000
C) 5,000
D) 5,500
A) STATEMENT 2
B) STATEMENT 1
C) STATEMENTS 1 AND 2
D) NEITHER STATEMENTS
A) P57,000
B) 30,000
C) 45,500
D) 72,500
A) P96,969
B) 18,823
C) 17,767
D) 88,235
A) P28,229
B) 23,529
C) 73,529
D) 25,760
A) P6,400
B) 9,412
C) 10,303
D) NONE
340. BASED ON THE SAME DATA IN NO. 339 ABOVE, THE DEDUCTIBLE
EXPENSE FROM THE GROSS INCOME OF XYZ CORPORATION IS-
A) P8,000
B) 25,000
C) 42,000
D) 34,000
A) P2,941.18
B) 4,705.88
C) 88,235
D) 58,823.53
342. BASED ON NUMBER 341 ABOVE, THE DEDUCTIBLE EXPENSE FROM THE
GROSS INCOME OF EXTRA COPORATION IS-
A) P14,705.88
B) 4,705.88
C) 12,132.35
D) 2,941.18
A) P186,000
B) 136,000
C) 50,000
D) 250,000
344. THE CORPORATION GAVE A BRAND NEW CAR TO ITS SALES MANAGER.
THE FRINGE BENEFIT GIVEN IS-
A) P64,000
B) 50,000
C) 186,000
D) 250,000
A) DUPLICATE
B) TRIPLICATE
C) QUADRUPLICATE
D) QUINTUPLICATE
A) PRESIDENT
B) GENERAL MANAGER
C) TREASURER
D) INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
STATEMENT 1 STATEMENT 2
A) TRUE TRUE
B) FALSE FALSE
C) FALSE TRUE
D) TRUE FALSE
A) P130,000
B) 200,000
C) 220,000
D) 165,000
ADDITIONAL INFORMATION:
A) P158,320
B) 184,537.50
C) 35,763.50
D) 158,175
361. THE INCOME TAX RETURN(ITR) OF JANET, SINGLE, FOR TAXABLE YEAR
2009, REPORTED A TAXABLE INCOME OF P520,240. A CAREFUL SCRUTINY
REVEALED THAT SOME ITEMS INCLUDED AS INCOME AND EXPENSES ARE
THE FOLLOWING:
INCOME:
EXPENSES:
A) P246,940
B) 236,840
C) 66,040
D) 256,840
12. MINIMUM WAGE EARNERS ARE NOT REQUIRED TO FILE AN INCOME TAX
RETURN.
13. HOLIDAY PAY, OVERTIME PAY, NIGHT SHIFT DIFFERENTIAL PAY AND
HAZARD PAY RECEIVED BY AN EMPLOYEE WHO IS RECEIVING A MONTHLY
BASIC PAY OF P20,000 ARE EXEMPT FROM INCOME TAX.
14. THE COST OF CONSTRUCTION OF ADDITIONAL FACILITIES MAY BE
CAPITALIZED OR DEDUCTED AS AN EXPENSE BY A PROPRIETARY
EDUCATIONAL INSTITUTION, AT THE OPTION OF THE BIR.
24. PROCEEDS OF LIFE INSURANCE ARE EXEMPT FROM INCOME TAX IF THE
DESIGNATED BENEFICIARY IS IRREVOCABLE.