BusinessLawandTaxati

on
Fi
nal Pre-
boar
dExaminati
on
Batch18( Oct
ober2009)

1.Thebuy
eracqui
resarealri
ghtt othefrui
tsofthethi
ngsold.
a.From theti
met heobl i
gati
ontodelivert
hethi
ngarises
b.From theperf
ectionoft hecontr
actofsale
c. Fr
om thedeli
verythereof
d.From paymentoft heprice
2.Abuy
ermaysuet hesel
lerforbreachofwar r
antyagainsthi
ddendef
ect
soft
hings
a.Withi
n40day sf r
om del i
veryofthethingsold
b.Withi
n6mont hsfrom deliv
eryofthethingsold
c. Wi
thi
n1y earfrom deli
veryofthet hi
ngssold
d.Withi
n4y earsfrom discoveryofthefraud
3.DisindebtedtoCintheamountofP200, 000anddeliv
erstoChisdiamondri
ngbywayof
pl
edge.IfDsell
sthesamediamondr i
ngt oT, whenwil
lTacqui
reownershi
poft
hesame?
a.From thet
imethesaleisperfectedbetweenDandT
b.From thet
imeTpay sthepricetoD
c. Fr
om thet
imeCconsent stothesal ebet
weenDandT
d.From thet
imeTobtainsactual possessi
onofthedi
amondr i
ng
4.I
napar
tner
ship,
thepartner
sshar
einthepr
ofi
ts
a.Equal l
y c. Accordi
ngtothecont
ract
b.Accor ding to capi
tal d.Justlyandequit
abl
y
contr
ibuti
on
5.Thiskindofagentmerel
ymakest hepri
nci
palandthet
hir
dper sonmeetandwhent
hey
arr
iveatanagr
eementorcont
ractbecomesent
it
ledt
ocompensati
on.
a.Broker c. Factor
b.Commi ssi
onagent d.At t
orneyatl
aw
6.Thef
oll
owingar eadv ant
agesofno-parv alueshareofst
ock.Whi chist
heexcept
ion?
a.No- parvaluesharesall
owf lexibil
it
yinpri
ce.
b.Thest ockholdersofno- parv aluesharesarer el
ievedofpersonalliabi
l
ityf
or
unpaidstocksubscript
ion
c. Ital
lowst heissueofst
ocksi nexchangeofpr opert
y .
d.No- parv aluesharesaf f
ordapossi bl
er emedyofr eli
effr
om theevilofover
-
capital
i
zat i
onandstockwat ering.
7.CappointedStoselltheformer’
scarf orP200,000.Ssol dthecartoPf orP200,
000butS
actedi
nherownname.Af t
erdeli
v ery
,Pinspectedt hecarandshef oundhiddendef
ect
sin
thecar
.CanPf il
eanact i
onagainstCev enwhenSact edinherownname?
a.No,under“caveatempt or”l
etthebuyerbewar e.
b.Yes,becausethisisacont r
actinv
olvi
ngpr opert
ybelongi
ngtothepri
nci
pal
.
c. No,
becauseSact edinherownnamenotoft hepri
ncipal
.
d.Yes,becausethecontractofsaleisalreadyper f
ected.

8.Abi l
lofexchangetowhichnodocumenti
sat
tachedwhenpresent
mentforpay
mentor
acceptancei
smade.
a.Tr
adeaccept
ance b.Bankaccept
ance
 c. Cl
eanbi
l
lofexchange exchange
d.Documentar
y bi
l
l of
9.Thedi
sti
nct
ionbet weenaproxyandav oti
ngtrusti
sthati
nav ot
ingtrust
:
a.Thet r
usteehadnolegalti
tl
et othesharesofthet
ransfer
ri
ngst ockhol
der
.
b.Unl esscoupledwit
hinter
est, i
srevocabl
eatanyti
me.
c. I
snotl i
mi t
edtoanyparti
cularmeet i
ng.
d.St ockcerti
fi
catei
snotcancel l
ed.
10.AandBent eredintoauni ver
salpartnershi
pofallpresentproperty
.Thecommonpr opert
y
oft
hepar
tnershipshal lbe
a.Al lthepr oper t
ieswhichbel ongedtoeachoft hepar t
nersatt heti
meoft he
constit
utionoft hepartnershi
p
b.Al ltheproper ti
eswhichshal lbel
ongt
oeachoft hepar t
nersaft
ertheconst
it
uti
on
ofthepar tnership
c. Allthepr oper t
ieswhichbel ongedtoeachoft hepar t
nersatt heti
meoft he
constit
utionoft hepar t
nershipaswel last heprofi
tswhi chtheymayacquire
therewit
h
d.Al lthepr oper t
ieswhichbel ongedtoeachoft hepar t
nersatt heti
meoft he
constit
utionoft hepartnershipaswellast hepropert
ieswhicheachmayacquire
thereaft
er
11.P appoint
ed A his agentfort he purpose ofsell
ing hi
s carf
orP600,
000 wit
h 10%
commission.Asoldthesamecart oTf orP800,000.HowmuchshouldApaytoP?
a.P600,000only
b.P540,000ormi nusal
readythe10%commi ssi
on
c. P800,
000
d.P720,000ormi nusal
readythe10%commi ssi
on
12.Whi
choft
hef oll
owingi
nstrumentsi
snegoti
abl
e?
a.“ Goodt oJosedelaPazororder
,P20,
000”(Sgd.Pedr
oCura)
b.“ Iherebyauthor
izeyoutopayJosedel
aPazoror der
,P20,
000”(Sgd.PedroCura)
c. “IpromisetopayJosedel aPazororderP20,000worthinsugar.
”( Sgd.Pedro
Cura)
d.“ IpromisetopayJosedelaPazororderP20,
000onMay23. ”
13.Stat
ement1.Wher et
hebusinessofthepartnershi
pi sini
mmi nentdangerofbei
nglost,an
i
ndustr
ialpar
tnerwho refusesto give an addit
ionalcont
ri
bution agr
eed upon can be
compell
edtosell
hisi
nter
eststotheothers.

St
atement2.Apar t
nerappointedasmanageri ntheArt
icl
esofPar
tner
shi
pcanber
emov
ed
wi
thorwithoutcause.
a.Bot hstatement
sar et rue
b.Bot hstatement
sar ef alse
c. Statement1istrue,butSt atement2isfal
se
d.St atement1isfalse,butSt atement2istr
ue
14.Stockcorporat
ionsarepr ohibitedfrom r
etai
ningsurpl
usprofi
tsinexcessofonehundr ed
percentoft
heirpaid-
incapi t
alstockinthi
scase:
a.Whenj usti
fied,bydef i
nitecor
porateexpansi
onproject
sorpr ogr
amsapproved
bytheboar ddirectors
b.Whent hereispensi onplanasagreedint
heCollect
iveBargai
ningAgreement
 c. Whenthecor porati
onsisprohibit
edunderanyl oanagreementwithanyfi
nanci
al
i
nsti
tut
ionorcr edi
tor,whet
herl ocalorf
oreign,fr
om declari
ngdivi
dendswit
hout
i
tsconsent
d.Wheni tcanbecl earl
yshownt hatsuchr et
entioni
snecessar yunderspeci
al
ci
rcumstancesobt aini
ngint hecor porat
ion,suchaspr ovi
ding pr
eser
vesfor
pr
obablecontingencies
15.Thef
oll
owingaret herightsofanunpai dsel
ler
,except
:
a.Ar i
ghtofli
enov erthethi
ngsoldwhileheissti
l
linpossessi
on
b.I ncaseofi nsolvencyonthepartofthebuyer,
theri
ghtofstoppagei
ntr
ansi
t
c. Righttoresellthethingssol
d
d.Ri ghttoint
er estont hepr
iceofthesale
16.A,BandCbor r
owed“ ensolidum”f r
om X,YandZ, P900,
000pay ableonDecember15, 2008.
OnAugust19,2007,Apai dXt hewholeamountofP900, 000.I fco-debtorBr
eimbursesA
onJul
y20,2009, howmuchshoul dhepayhim?
a.Not hing, because t he premature payment extinguished his l
iabi
l
ityf or
rei
mbur sement
b.P300, 000onlybecauset hepaymentofAi sunauthor
ized
c. P300,000withinterestfr
om August19,2007toJuly20, 2009
d.P300, 000withinterestfr
om December15,2008toJul y20, 2009
17.Thev
otingrequirementneededindeclar
ingcashorpropert
ydi v
idend–
a.Maj or i
tyvoteoft
heBoar dofDirect
ors
b.Maj or i
tyv ot
eoft heBoar d ofDi r
ector
splust hev ot
eofa major
it
yoft he
outstandingshar
es
c. Major i
tyvoteoftheBoar dofDi r
ector
splusthev oteof2/3oftheout
standi
ng
shares
d.2/ 3v otesofthedir
ector
splusamaj ori
tyoft
heout standi
ngshar
es
18.A,BandCar epar tners.Acont ri
but
edhisserv
icesonl
y,BP20,000andCP10, 000.The
part
nershi
pwasl i
quidated.Afterpay
mentofthepart
ner
shipobli
gat
ion,onlyP9,
000worth
ofassetsr
emained.Theshar eofAwi l
lbe–
a.P3,
000 c. Equalt
ot heshareofC
b.Equaltotheshar eofB d.Not hi
ng
19.Thef
oll
owingareinstancesofpl edgecr eatedbyoper at
ionoflaw,except:
a.Hot elkeeperr etai
nst hethingsbr oughtintothehotelbyt heguestwhocannot
payhishotel bill
s
b.Anagentr etainsi npledget het hi
ngwhi chistheobjectoft heagencyr
egar
ding
hi
scommi ssion
c. Amechani cret ainsthecarher epair
eduntilheispaid
d.Adeposi toryr etainsthethingdeposi t
edunt i
lheispaidthechargesduehi
m
20.SandBagr eedonthesal eofaf ourhectarepropert
yatMacapagalBoul evar
df orthepri
ce
ofP75,
000persquaremet eronconditi
ont hati
fthepriceisnotpaidonapar t
icul
ardate,
the
sal
ewillbeconsi
deredaut omati
call
ycancel l
ed.Ont hepart
icul
ardateagreedupon,Bdi d
notpayS,butBneveraskedf orajudi
cialcancell
ati
onnormadeanot ar
ialactofresci
ssi
on.
Int
hiscase–
a.Thesaleiscancel l
edasperagr eement.
b.Scanv al
idlyref
useanysubsequentof fertopaybyB.
c. Bcansti
l
l paySt hepri
ce.
 d.Bcannotany
mor
epaythepricesimpl
ybecauset
hesal
eiscancel
l
edduet
ohi
s
f
ail
uret
opayont
hest
ipul
ateddate.
21.OnDecember15, 2006,Soffer
edt oselltoBhishouseandl ostforP5, 000,
000.Br equest
ed
Stogivehim 60day swithi
nwhi cht orai
setheP5,000,000.OnFebr uary5,2007,beforet
he
expi
rat
ionofthe60dayper i
od,Sinf or
medBt hathehasr aisedt hepr i
cetoP7,000,000.Can
B,underthecircumstances,compelSt oacceptP5,000,000aspay mentforthehouseand
l
ot?
a.No, becauseasbet weenSandB, ther
eisasy etnoper fectedsale.
b.Yes, becauseitwasSwhomadet heof f
erandBi sjustaccept i
ngthesame.
c. No,becausei nacont ractofsaleShast heexcl usiv
er i
ghttofixthepr i
ceto
whichBcanonl yconcur
d.Yes,becausehei mpliedlycommi tt
edhi mselft oP5, 000i nnotrejecti
ngthe
r
equestof60day storaisethemoney
22.Whi
choft
heseisnotaspecialf
orm ofpay
ment
?
a.Appl icat
ionofpay
ment d.Tender of pay
ment &
b.Daci onenpago consi
gnat
ion
c. Cessionenpago
23.Acont
ractasar
ulemustbei
nwr
it
ingt
obev
ali
d.
Ataxpayerisnotent i
tledtointerestont heov
erpay
mentoft
axsubj
ectofar
efundbecause
anobli
gati
onderivedf rom lawi snotpresumed.
a.Bot hst
at ement sar etrue
b.Bot har
ef al
se
c. Fir
sti
sf alse,secondi strue
d.Secondi sf alse,fi
rstistr
ue
24.I
nwhi
chofthesecasesdoesthelawnotallowtherecoveryofdef
ici
encyjudgment
?
a.Inasal eofper
sonal pr
opert
yont hei
nstall
mentbasisshoul
dt hebuy
erfai
ltopay
t
woormor ei
nstal
lmentsaft
erforecl
osureofthechatt
elmortgage
b.Inacont r
actofrealest
atemortgage
c. I
nacont r
actofanti
chresi
s
d.Inacont r
actofchattel
mortgage
25.Apur chasedoni nstall
mentf rom Bahouseandl ot.Afteray earofi nstall
mentpayment ,A
died.Br ef
usest oacceptt hemont hlyi
nstal
lmentbei
ngt ender edbyhi shei r
scontending
thatupont hedeathoft hei
rfatherwit
hwhom hehasacont ract,thecont r
actaut
omaticall
y
termi
nat edorcancel l
ed.Bi s:
a.Wr ongf orrightacquir
edinvir
tueofanobli
gationi
st ransmi ssibl
e
b.Wr ongf orther i
ghttoconti
nuethepaymentispersonal onlytoA
c. Corr
ectf orthecontracti
sbetweenhim andAonl y
d.Cor r
ectbecauset hepart
iesdidnotagr
eeont hetr
ansmi ssibi
li
tyoftheri
ght
26.Theby-
lawsmaypr
ovidet
hattheholdersofamaj
ori
tyoft
heout
standi
ngcapi
talst
ockmay
el
ectal
lmember
softheboar
dofdirectors.
Thatitmayal so provi
dethatno of
fi
ceroft
hecor
por
ati
onshallber equired t
o bea
st
ockholder
.
a.Bothstatementsar
etr
ue c. Fi
rsti
sfalse,secondistr
ue
b.Botharef al
se d.Firsti
strue,secondisfal
se
27.A subscr
ibed to 1,000 sharesofst ockto X Corporat
ion. Shepai d 25% ofthesai
d
subscr
ipt
ion.Duringt hestockhol
dermeet i
ng,canAv oteall
hersubscri
bedshares?
a.No, becauset hesubscript
ionhasnotyetbeenf ul
lypai
d
b.No, becauseA’ sshareshasbecomedel inquentwhichcannotbev ot
ed.
c. Yes,astot hepaidpercentageofsubscr
ipti
on
d.Yes, becauseunpai dsharescanbev ot
ed
28.DandCagr eedthatDshal ldeli
vertoCtenkil
osofmar
ij
uanai
nst
eadofpay
ingD’
sloan
amount
ingtoP1mi l
li
on.Ther ef
ore:
a.D’ sobl
igat
ionisext
inguished
b.Dmustdel iver10ki
losofmar ij
uana
c. Dmustpayt he1mi l
lion.
d.Dmaychoosebet weent hetwoobli
gat
ions.
29.A)Obligat
ionsbet
weenhusbandandwif
e,peopl
e’
sobligat
iontopaytaxes,
obligationoft
he
employertopayt hesal
ari
esandbenefi
tsoftheiremployees,andtheobl i
gationofthe
winneringambli
ngtoret
urnhi
swinni
ngtothel
oserareobl
igati
onsderi
vedfrom law.

B)Deat h ofthev i
ctim through mi stakeoff actmi
staken to bean aswang,hit
ti
ng a
byst
andert hr
oughr ecklessness,recklessdiggingonhisownpr oper
tythattr
igger
eda
l
andsli
deandf al
lofther esident
ialstructur
eoftheadj
acentpropert
yownerwil
lgiveri
seto
anobli
gati
onderivedfrom quasi-del
ict.
a.Onl yAiscorrect c. Bot
harecorr
ect
b.Onl yBiscorrect d.Botharewrong
30.A)Dindoi
nsur
edhi
sonlyhousewithSunogAgadI
nsur
anceCo.Di
ndo’
shousewashi
tbya
l
ight
ningandwastot
all
yburned.Theinsur
anceco.i
snotli
abl
ebecausethel
ossoft
he
housewasduetof
ort
uit
ousevent
.
B)Thecondit
ionnott odoani
mpossi
blet
hingshal
lbeconsideredasnothav
ingbeen
agr
eedupon.
a.OnlyAisfalse c. Botharet
rue
b.OnlyAistrue d.Bot haref
alse
31.Thei
nsur
err efusest opaythei nsurancecl
aim byt heinsureronthegr oundt
hattheloss
wasduet
of irewhi chisafor
tuit
ousev enti
s:
a.Cor r
ectf ornopersonshallberesponsibl
ef ordamageori nj
uryduetofor
tui
tous
event
b.I ncorrectfort
heverynatureoftheinsurerisheassumedt heriskofl
oss
c. Incorrectforhi
sobligati
onisderi
vedf r
om cont r
actwhichisthelawbetweenthe
parties
d.Bot hBandC
32.Onr
efusal
byobli
gortoperf
orm apositi
vepersonalobl
i
gation( Bonus)
a.Hecanbecompel l
edfori
tishisobli
gati
ontodoso
b.Hecannotbecompel ledfort
odosowoul dvi
olatehisconsti
tuti
onal
rightagai
nst
i
nvol
unt
aryserv
itude
c. Gi
veri
setoanact i
onfordamageinf av
orofthecr edit
ororobli
ge
d.BothAandB
33.A)Real
obl
i
gat
ioni
sal
soknownasanobl
i
gat
iont
ogi
ve
B)Del
i
ver
yofmoneyi
npay
mentofani
ndebt
edness,
del
i
ver
yoft
hebookbor
rowed,
del
i
ver
y
 ofacarpur
chasedareexampl
esofanobl
i
gat
iont
odo.
a.OnlyAi scor
rect c. Bot
har
ecorr
ect
b.OnlyBi scor
rect d.Bothar
ewrong

34.Dbor r
owedfrom CP1, 000,000tosecur ethepay mentofwhi cht
hefor
merver
bal
l
yagreedto
del
iverhi
s4hect areagricult
urallandbywayofant i
chresisandtopay10% i
nter
estper
annum.Thecont ractofloanandant ichresi
s–
a.Ar ebothv al
id
b.Bot hnullandv oid
c. Theloanisv al
idbuttheant i
chresisisnullandv oid
d.Thecont ractofant i
chresi
sisv al
id,buttheloani snul
landvoi
d
35.Whi
choft
heseisnotanessent i
alr
equisit
ecommont obot hpledgeandmor t
gage?
a.Thatt he pl
edge ormor tgage be consti
tuted to securet he f
ulfi
ll
mentofa
pri
nci
pal obl
igat
ion
b.Thatt hepledgorormortgagorbetheprincipaldebtor
c. Thatthepledgorormortgagorhasthefreedi sposalofthepropert
ies
d.Thati tistheessenceofthepledgeormor tgagethatiftheobli
gationisnotpai
d
thethingsinwhi chthepledgeormor tgageconsi stmaybeal ienat
edf ort
he
paymentoft hedebt
36.I
nt heabsenceofamar ri
agesettl
ement
,orwhent heregimeagr eeduponi sv oi
d,the
pr
opert
yrel
ationsofthespouseswhomarr
iedbef
oreAugust3,1988shallbegover
nedby :
a.Absol ute community of c. Absoluteseparat
eofpropert
ies
propert
ies d.Nopr oper
tyrel
ati
ons
b.Conj ugalpar
tner
shipofgai
ns
37.Theranchoft hedecedentwasmor t
gagedtoaccommodat etherequestofhi
sbr otherf
ora
l
oan.Thev alueoftheloantothebrotherwasnotincl
udedasreceivabl
eint
hegr ossestat
e
oft
hedecedent .Whatwoul dbethetreat
mentoftheunpaidmortgageontheranch?
a.Deduct i
blefr
om grossestate
b.Notdeduct i
blefr
om thegrossestat
e
c. Deducti
blefr
om thegrossincomeoftheestat
e
d.Deduct i
bleeit
herfr
om thegrossest
ateorthegrossi
ncomeoft heestate
38.Mr.JohnSamuel son,residental
i
en,donat
edapi eceofj
ewelr
yt ohissonwhogotmar ri
ed
onJanuar y15,2009.Thepi eceofjewel
rywasmai l
edtohissononJanuar y10,2009,and
wasr ecei
vedandaccept edonJanuary20,2009.Whenisthelastdaytofi
lethedonor’
stax
ret
urn?
a.February9,2009 c. February19,2009
b.February14,2009 d.Mar ch20,2009
39.Forv al
ue-
addedt ax,whi chisnotar equi
sit
ef orthetaxabi
lit
yoft hesaleofgoodsor
propert
y?
a.The sal e mustbe an act ualsale ofgoods ofpr opert
ies f
ora valuabl
e
considerati
on.
b.Thet ransactioni sunder
takeninthecourseoftr
adeorbusiness.
c. Thegoodsar ef oruseorconsumptioninthePhi
li
ppines.
d.The t ransaction mustnotbe exemptundert he Tax Code,speci
allaw or
i
nternationalagreement.
40.Dr
eamboatCor
por
ati
onr
egi
ster
edundert
heVATsy
stem onJanuar
y15,
2009.Whenwoul
d
 t
hel
astdayt
omanuallyfi
lei
tsf
ir
stmont
hlyVATdecl
arat
ion?
a.Febr
uary20,2009 c. Apri
l25,
2009
b.March20,2009 d.Noneoft hechoi
ces
41.Ani
nter
nati
onal aircarri
erdoingbusi nessint hePhili
ppinesshallbesubj
ectto:
a.3%per cent agetaxongr ossreceiptsinthePhili
ppinesonly
b.2½%i ncomet axongr ossPhili
ppinebill
ingsonly
c. Botht he2½%i ncomet axongr ossPhi l
ippi
nebi l
l
ingsand3%per cent
agetaxon
grossr eceiptsi
nt hePhi l
ippi
nes
d.Nei thert he2½%i ncomet axongr ossPhi l
i
ppinebi l
l
ingsnorthe3%percent
age
taxongr ossreceiptsinthePhi l
i
ppi nes
42.Oneoft
hefollowi
ngisnotalargetaxpayer.
a.Taxpay erwhopaysv al
ue-addedtaxofP100,
000perquarter
b.Taxpay erwhosegrosssalesorrecei
ptsperyeari
sP1,000,000,
000
c. Taxpayerwhopaysincomet axofP100,000perquart
er
d.Taxpay erwhosenetwor t
hisP300,000,
000atthecloseofeachcalendarorf
iscal
year
43.Thefollowinginformat i
onar epr esent edt oy ouinconnect i
onwi ththedeterminati
onofthe
fr
ingebenef i
tstaxoft hegener almanagerofJasmi nMer chandisi
ng:
Paidbyt hecompanywi t
hof ficialreceiptsinthenameoft hecompany :
a)Lapt opcomput erformanager ’sof fi
ceuse, P80,000
b)Ai r-
conditi
oninguni tformanager ’
sof fi
ceuse, P30,
000
c) Groceriesformanager ’
sfami lyconsumpt i
on,P10,000
d)Pl umbi ngmat erial
sforusei nt her epairofmanager ’sr esi
dentialhouse,P5,
000
Paidbyt hemanagerwi t
hof fi
cial receipt
si nt
henameoft hecompany :
a)Pur chaseofcl othesandshoesf orthemanager ’
swi fe,P15,000
b)Sampl esofmer chandisesoldi nt hecompet i
tor’
sstor eformar keti
ngstudy,P12,000
Howmuchi sthefri
ngebenef i
tstaxdue?
a.P14, 118 b.P48, 640 c. P58, 824 d.P71,529
44.Oneoft
hefoll
owingisdeduct
ibl
efr
om t
hegr
ossi
ncomeevenifnotbusi
nessrel
ated.
a.Rentexpense c. Baddebts
b.Trav
elexpenses d.Charit
able&othercontr
ibut
ions
45.Anoperat
orofani l
legalhor se-betti
ngbusi ness,si
ngl
e,hast hefoll
owingdat
a:
Receiptsfr
om il
legal bets,P500,000
Rentofspacewher ebet sar ereceived,grossof5%wi thholdi
ngtax,P20,
000
Salari
esofassistants,gr ossofcr edit
ablewithhol
dingtax,P100,000
Bri
bemoneyt oobtainpr ot ect
ionf r
om ar r
estandprosecution,P50,
000
Howmuchi sthetaxablei ncome?
a.P380, 00 b.P360, 00 c. P330,00 d.P280,
00
0 0 0 0
46.NoynoyRoxaspaidLiberalReal
tyP600,000fortheri
ghttoleaseast orespacei
nMakatifor
5yearsstart
ingOctober1,2008.Hewoul dalsopayamont hlyrentalofP50,
000star
ti
ng
Oct
ober1,2008,andwoul dshouldertheannualrealestat
et axofP20, 000st
art
ing2009.
Howmuchwoul dbethetotaldeducti
onsofNoynoyRoxasi n2008?
a.P670,00 b.P200, 00 c. P180,00 d.P150,00
0 0 0 0
47.Thet
axabl
eincomebef
orei
ncomet
axofEl
aineCor
por
ati
onf
ort
hecur
renty
earwas
 P500,000.Dur i
ngthey ear,thecor porat
ionreceivedt hefoll
owingr efundoftaxespaidin
pr
ev i
ous year
s and r ecov eries ofaccounts written off
,allofwhi ch were credi
ted t
o
miscell
aneousincome:
Refundofper cent agetax P20,
000
Refundofincomet ax P50,
000
Baddebtrecov ered(allowedasdeduction) P30,
000
Baddebtrecov ered(disall
owedasdeduct i
on) P15,
000
Howmuchwoul dbet hei ncomet axpayableofthecor por
ationforthecur r
enty
ear?
a.P150, 000 c. P115,550
b.P130, 500 d.Noneoft hechoices
48.Af i
reoccurredintheCi t
yofDumaguet eandbyr easonofwhi chstockofpl ywoodofa
l
umbercompanywasl ooted.Thel umbercompanyf ail
edtorecordsuchlossi nit
sbooksof
accounts.Wast hel
ossdeduct i
ble?
a.Yes.Thel osswasdeduct ibl
ebecauseitwascausedbyf i
re.
b.Yes.Thel osswasdeduct ibl
ebecauseitwouldcorrecttoassumet hatthelumber
companyr eporteditwithi
n45day saft
eritwassust ai
ned.
c. No.Thel osswasnotdeduct i
blebecauset heconductoft hetaxpay erisnot
chargi
ngof finitsbooksofaccountsit
slosspr ov
edt hattheall
egedlosshadnot
beensuff
er ed.
d.No.Thel osswascausedbycar el
essness.
49.Oneoft
hef ol
lowingi ndi
v i
dualsisnotsubjecttoincomet axinthePhil
ippines.
a.AnAmer i
canengi neerwhomakest hePhil
ippineshisresi
dencebecauseoft he
natureofhi swor k
b.AJapanesev i
sit
ingpr of
essorwhooccasi onallyteachesatoneoft heleadi
ng
universit
iesinthePhi l
ippi
nes,andstaysheref oranaggregateof185day s
c. ATai wanesesi ngerwhoper for
msi noneoft hehot el
sinthePhi li
ppinesforone
(1)week, andt henleavesafterheisthroughwi t
hhisperfor
mances
d.AFi l
ipinoresidi
ngandwor ki
nginAmer i
cawhocomest ov i
sithisrel
atives
50.Whi
choft
hefoll
owingist axableasacorpor
ati
on?
a.Gener al professi
onal c. Gener
alco-
partnershi
p
par
tnership d.Noneoft hechoices
b.Co-owner ship
51.Aresi
dentcitizenownsarealpropertyclassi
fiedascapit
alassetsi
tuat
edinUSA.Dur
ingt
he
cur
rentyear,hesell
sthepropert
yforP5, 000,
000r eal
i
zingagainofP2,000,
000.Whatist
he
Phi
li
ppinetaxconsequenceofthesal e?
a.Subj ectt
o6%capi t
algainstax
b.Subj ectt
oSecti
on24( A)
c. Subjectt
oeit
her6%capi talgainstaxorSecti
on24( A)
d.Notsubj ectt
oPhili
ppinetax
52.Thef
oll
owingmustrepor
tthei
rincomeundert hecashbasisexcept:
a.Thosewhokeepr ecordsunderthecashr ecei
ptsanddisbursementmethod
b.Thosewhodonotkeepbooksandr ecords
c. Thosewhosebooksandr ecor
dsareinadequatetorefl
ectthetaxabl
eincome
d.Par t
ner
sofageneralprof
essionalpart
nership
53.Mr.TonyDayag,VAT-r
egi
ster
edrealest
atedeal
er,sol
dar ealest
atef
orP2,000,
000on
November29,2008.Thecostofpr
opert
ywasP1,500,
000.Thetermsofthesal
ewereas
 fol
l
ows:
Downpayment,Nov.29,2008,P400,000,balancepayableinmont
hlyi
nstal
l
ment
sof
P100,
000begi
nni
ngonDecember29, 2008unt i
lful
l
ypaid,P1,
600,
000.
Howmuchwast heincometobereport
edi n2008?
a.P500,
00 b.P200, 00 c. P125,
00 d.P100,
00
0 0 0 0
54.Usi
ngthesamedat
aint
hepr
ecedi
ngnumber
,howmuchwastheout
putVATi
nNovember
29,
2008?
a.P60,
000 b.P50,
000 c. P48,
000 d.P15,000
55.Anindi
v i
dualtaxpay
eri squali
fi
edtosubst
it
utedf
il
ingofi
ncomet axret
urni
fhemeetst
he
fol
l
owingr equi
sit
es,except:
a.Pur e compensat i
on income c. Wi
thholdi
ngtaxi
scorr
ect
earner d.Minimum wageearner
b.Oneempl oyerinthePhi
l
ippi
nes
56.A taxpayerreceiv
esanassessmentnot i
ceonJanuar y5,2009. Hef i
l
esamot ionfor
reconsi
derat
ionwi t
htheBIRonJanuary15,2009.Whenist helastdayforthesubmissi
on
ofcompletedocument stosuppor
thi
smotionforr
econsi
derati
on?
a.Febr uary4,2009 c. January15,2011
b.Mar ch16,2009 d.Noneoft hechoi
ces
57.BoyBonaferesidesinBacoor,
Cav itewhi l
ehispl
aceofwor ki
sinSampaloc,
Manil
a.Hef i
l
es
hi
sincomet axr et
urnfor2007i ncomeonSept ember10,2008inQuezonCitybecauset
he
RevenueDistr
ictOf f
iccerinthepl acei shiscoll
egef r
iend. Theamountoft axduei s
P100,000.Howmuchwi l
lbet
hesur charge?
a.P50,000 b.P25, 000 c. P20,
000 d.None
58.Usi
ngt
hesamedat
aint
heprecedi
ngnumber
,howmuchistheint
erestondel
i
nquency
?
a.P8,
111 b.P8,333.
33 c. P8,091.
33 d.P7,500
59.Whi
choft
hef
oll
owingnat i
onaltaxesi
sfoundi
ntheTaxCode?
a.Sugaradjust
mentt axes c. Document
arystampt ax
b.Taxesonnar cot
icdrugs d.Pr i
vat
emotorvehicl
et ax
60.Whenaproper
tyi
sdonat edincontemplat
ionofdeat
h,thebasi
softhet
axshal
lbe:
a.Fairmarketvalueattheti
meofdonat i
on
b.Fairmarketvalueinthehandsofthedonorbefor
ethet
imeofdonat
ion
c. Fai
rmarketvalueattheti
meofdeat hoft
hedonor
d.Costwhent hepr oper
tywasacquired
61.I
facorpor
ati
ontowhi cht
hestockhol
deri
sindebt
edf
orgi
vesthedebt,thetransact
ionhas
t
heef
fectofapaymentofwhatkindofdi
vi
dend?
a.Stockdi
vidend c. Liqui
dati
ngdi v
idend
b.Cashdivi
dend d.I ndi
rectdi
vidend
62.C.Uberit
ahast hreewi
vesunderhi
stri
balcustomsandpracti
ce.Hehasat otalofsi
x(6)
qual
if
ieddependentchi
l
drenfr
om hi
sthr
eewi v
es.Heisentit
ledtotot
alper
sonalexempt
ion
of:
a.P200, 00 b.P150,00 c. P50,000
0 0 d.Zer o
63.Whi
choft
hefol
lowingtaxeshasbeenr epl
acedbyVAT?
a.Commoncar rier
’st
axonl andtr
ansportofpassengers
b.Franchisetaxonwat erandgas
c. Gr
ossreceiptstaxonbanksandnon- bankfi
nanciali
nter
medi
ari
es
d.Caterer
’staxonoper ator
sofeati
ngplaces
64.Oneoft
hefoll
owingisnotenti
tl
edtoanoptionalstandar
ddeduct
ion?
a.Residentcit
izenwhoisapurecompensat ioni
ncomeearner
b.Residentali
enwhoi spur
ebusinessincomeear ner
c. Domesti
ccor por
ati
on
d.Residentfor
eigncorpor
ati
on
65.LCBisengagedinthesaleofgoodswithnetsalesofP200,000.Theactualenter
tai
nment,
amusementandr ecr
eat
ionexpensesforthetaxabl
equartertot
alP2,
000.Fori ncometax
pur
poses,howmuchi st
hededucti
bleenter
tai
nment,amusementandrecreati
onexpenses?
a.P2, 000 b.P1,000 c. P500 d.None
66.Whi
choft
hefoll
owingshal
lmaket heassessmentfi
nal andexecutor
y?
a.Fai l
uret
orespondt onoti
ceofinfor
malconf er
encewithi
n15day saft
errecei
ptof
suchnoti
ce
b.Fai l
uret
orespondt opre-
assessmentnoticewi t
hin15daysaf t
err
eceiptofsuch
noti
ce
c. Fail
uret
ofil
elet
terofprotestwit
hBIRwithin30day saft
errecei
ptofassessment
noti
ce
d.Fai l
uret
oclai
mr efundwithi
n2y ear
saft
ert hedateofpayment
67.The mini
mum per cent
age ofcompr omi
se on t
he basi
c assessed t
ax when f
inanci
al
i
ncapacit
yisusedasbasisbecauset
hecompanyhasnotbeeninoperat
ionf
or5yearsis:
a.40% b.30% c. 20% d.10%
68.TheReSASer vi
ces,VAT- registeredt axpay er
,hasthefol
lowi
ngdataforthelastquart
erof
2008:
Cashsal es,netofi nputtax P3,
000,
000
Inst
allmentsales, netofinputt ax(col
l
ecti
ons) P1,200,
000
Deferredinputtax ,thi
rdquar ter2008 P 22,000
Purchases,totalinv oi
cev alue P3,920,
000
Mont hlyVATpay ment s(Oct oberandNov ember2008) P 20, 000
Thetaxpay
ableonorbef oreJanuar y25, 2009is:
a.P13,000 c. P42,
000
b.P28,000 d.Notgiven
69.Geor
geRefundi sakeeperofgaragewithannualgrossrecei
ptsofmorethanP1,500,
000.
Whatbusi
nesstaxisdueonhisrecei
ptsaskeeperofgarage?
a.Br oker’
stax c. Commoncarr
ier
’st
ax
b.Val ue-
addedtax d.Garagesal
estax
70.Whi
choft
hefoll
owingmaynotr aisemoneyf
orthegover
nment
?
a.Poweroft axation
b.Policepower
c. Powerofemi nentdomain
d.Pr i
vat
izati
onofgov er
nment’
scapi
tal
assets