InTax Final Quiz (Unit 7-9)

7/10/2021 ACCO20133 FINAL QUIZ
ACCO20133 FINAL QUIZ

Choose the correct answer. Good luck!!!!!
Email *
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Part 1. Theoritical
As rule, there is no income tax if there's no income. Which of the following is the
exception? *
Capital Gains Tax on sale of land and/or building
Capital Gains Tax on sale of shares of stocks outside the local stock exchange
Capital Gains Tax on sale of shares of stocks inside the local stock exchange
Tax on Passive Income
If a real property considered as capital asset located abroad was sold, what type
of income tax will apply on the transaction? *
Basic income tax
Capital gains tax
Either Basic Income Tax or CGT, at the option of the buyer
Either Basic Income Tax or CGT, at the option of the seller
https://docs.google.com/forms/d/e/1FAIpQLSe633JRHXaL9Pqp65hTgPH9oqDlK6yvBXIx-CUSAlWaSUM-WA/viewscore?viewscore=AE0zAgCSQzFz… 1/15
If a real property considered as capital asset located in PH was sold to the

Philippine Government, what type of income tax will apply on the transaction? *
Basic income tax
Capital gains tax
Either Basic Income Tax or CGT, at the option of the buyer
Either Basic Income Tax or CGT, at the option of the seller
Statement 1: Gain on sale of all kinds of capital assets are subject to the final tax
on capital gains. Statement 2: Gains from the sale of real property classified as
capital assets in Miami, Florida is not subject to the final tax on capital gain. *
Both statements are correct
Both statements are not correct
Only the first statement is correct
Only the second statement is correct
Which of the is not an income for income tax purposes? *
Collection of loans receivable
Condonation of debt for services rendered
Excess of selling price over the cost of an asset sold
None of the above
Which of the following taxpayers is taxable on income from all sources within and
outside the PH? *
Domestic Corporation
Resident Foreign Corporation
Resident Citizen
Both Domestic Corporation and Resident Citizen
Compensation income is earned when an employer-employee relationship

exists. Which of the following income represents income earned through
employee-employer relationship? I. Professional Fees II. Wages III. Pension Pay IV.
Capital Gain *
I only
I and III only
II and III only
I, II, III and IV only
Which of the following is taxable? *
Separation pay received by a 50-year old employee due to the retrenchment program
of the employer
Retirement pay received from a benefit plan registered with the BIR where at the time
the employee retired , he was 57 years of age, retiring from employment for the first
time in his life, and was employed with th employer for 8 years
Social security benefit received by a balikbayan from employer abroad at age of 30
None of the above
This pertains to the actual remuneration or earnings paid by an employer for

services rendered on normal working days and hours , including allowances
provided for under existing company policy or collectove bargaining agreement,
if any. *
Full pay or full salary
Actual cash benefit received from SSS
Salary differential
All of the above
Which of the following is not a taxable income? *
Bad debts previously deducted as item of expense and partially recovered

subsequently
Tax expense previously disallowed as deduction from taxable income, fully refunded
subsequently
Income from gambling
Income from usorious financing
If a corporation distributes it's own treasury stocks to it's shareholders , this kind
of corporate distribution which is recognized in the Tax code is a: *
Stock dividend
Property dividend
Cash dividend
Liquidating dividend
Prizes and awards received shall be exempt from income tax when the following
conditions are met, except *
It is given in recognition of religous, charitable, scientific, educational, artistic, literary

or civic achievement
The recepient of the award or prize is not required to render substantial future
services as a condition in receiving the prize or award
The recepient of the award was selected without any action on his part to enter the
contest or proceeding
The amount of prizes does not exceed P10,000
Pedro was selected as th most outstanding "barrio teacher" in Sitio Mabato of

Cagayan. His name was submitted by the school prinicipal without his
knowledge. He received a trophy and a cash award of P50,000. The amount he
received is *
Subject to basic income tax
Subject to final tax
Exempt from income tax
Party taxable, partly exempt
The following are examples of non taxable compensation for injuries, except *
Actual damages for injuries suffered
Compensatory damage for unrealized profit
Moral damages for grief, anxiety and physiscal sufferings
Exemplary damages
A domestic corporation provides fixed daily meal allowance to all it's regular
employees. The meal allowance is: *
Exempt from basic income tax
Subject to fringe benefit tax if ther recepient is a rank and file employee
Subject to fringe benefit tax if ther recepient is a managerial employee
Subject to basic income tax
In general, the applicable rate in computing fringe benefit tax beginning January
1, 2018 is: *
32%
30%
25%
35%
Whic of the following compensation will be subject to graduated rates? *
Basic salary whether or not the employee is a minimum wage earner
Basic salary only if the employee is not a minimum wage earner
13th month pay and other benefits not exceeding P 30,000
Fringe benefits received by supervisory and managerial employee
If an individual performs services for a creditor who in consideration thereof

cancels the debt, the cancellation of indebtedness may amount: *
To a gift
To a capital contribution
To a donation inter vivos
To a payment of income
Which of the following dealings in property is subject to normal income tax? *
Sale of Ordinary Asset
Sale of real property, located in the Philippines, classified as capital asset
Sale of shares in a domestic corporation sold outside the local stock exchange
All of the above
Which of the following transactions is subject to 6% capital gains tax: *
Sale of condominum units by a real estate dealer
Sale of real property utilized for office use
Sale of apartment houses
Sale of vacant lot by an employee
Part 2. Problem Solving
In 2020, Vincent sold a residential house and lot located in Cotabato for
P10,000,000 to his friend. He acquired it at P5,000,000 back in 2016. The FMV
at the time of sale is P15,000,000 while the Zonal Value is P13,000,000. The tax
on the above transaction is *
P 900,000 Capital gains tax
P 1,450,000 Basic Income Tax
None of the above
In relation to the above question, what if the residential house and lot sold was
being rented out so Vincent could earn a monthly rent income. Considering all
other factors are the same. The tax on the above transaction is *
P 1,450,000 Basic Income Tax
None of the above
Assuming the house and lot was Vincent's Principal Residence and he used 1/2 of
the proceeds to buy a new residence within 18 months after the above sale.
Assume further that Vincent properly informed the BIR about the sale. It shall be
*
Exempt from Capital Gains Tax
None of the above
Assuming the house and lot was Vincent's Principal Residence and he used 100%
of the proceeds to buy a new residence within 18 months after the above sale.
Assume further that Vincent properly informed the BIR about the sale. It shall be
*
Exempt from Capital Gains Tax
None of the above
YMCA Company, provided a full college scholarship amounting to P500,000 for

each dependent of it's managerial employees. One of those is Mr. Kabaldo which
have 4 qualified dependent. How much will be the Fringe Benefit Tax that will be
imposed to him? *
269,231
1,076,923
700,000
https://docs.google.com/forms/d/e/1FAIpQLSe633JRHXaL9Pqp65hTgPH9oqDlK6yvBXIx-CUSAlWaSUM-WA/viewscore?viewscore=AE0zAgCSQz… 10/15
In relation to the above problem,If the company required each dependent to ace
a qualifying exam first prior receiving the scholarship, how much will be the
Fringe Benefit Tax that will be imposed to Mr. Kablado? Assuming only 2 of his
dependent passed? *
538,462
269,231
350,000
USTE Company owns a condominium unit in "The One Residences". It allowed it's
executive to use the said property as his residence. The acquisition cost of the
property is P32,000,000 while it's FMV as shown in it's current Real Property Tax
Declaration amounts to P25,000,000. How much is the FBT? *
P0
P 336,538
P 430,769
P 673,077
https://docs.google.com/forms/d/e/1FAIpQLSe633JRHXaL9Pqp65hTgPH9oqDlK6yvBXIx-CUSAlWaSUM-WA/viewscore?viewscore=AE0zAgCSQzF… 11/15
In relation to the above question, what if the condominium unit is 40m away from
the office. How much is the FBT? *
P0
P 336,538
P 430,769
P 6,730,769
In relation to the above question, what if the condominium unit was purchased in
the name of the employer at P32,000,000 exclusive of P500,000 interest. How
much is the FBT? *
P0
P 336,538
P 430,769
P 15,753,846
Anna a resident citizen, won P 2,000,000 in a raffle draw held in Singapore. The
tax on the above transaction is *
P 400,000 Final Tax
P 500,000 Final Tax
P 490,000 Income Tax
Tax Exempt
What if, instead the winning is from PCSO.The tax on the above transaction is *
P 400,000 Final Tax
P 500,000 Final Tax
Tax Exempt
What if instead, Ana is a Non-Resident Alien not engaged in trade or business.

The tax on the above transaction is *
P 400,000 Final Tax
P 500,000 Final Tax
Tax Exempt
In 2020, East Star Inc., a domestic corporation sold shares of stocks for
P250,000. The shares was acquired in 2015 at a cost of P100,000, were held as a
capital asset and were sold directly to a buyer. How much was the capital gains
tax due? *
P 10,000
P 15,000
P 22,500
P 45,000
On Jan 1, 2016, Pedro leased his vacant lot for a period of 12 years to Juan at an
annual rate of P2,400,000. The lease contract provides, among others that Juan
will construct a 5-storey building for paring purposes at a cost of
P36,000,000.Ownership of the building shall belong to Pedro upon the
expiration or termination of the lease contract. The building was completed on
Jan 1,2018 with an estimated useful life of 15 years. It was also agreed that Juan
will pay the following in 2016: P 4,800,000 representing rental payment for two
(2) years, and P 2,400,000 Security deposit. Pedro shall report total income from
the lease in 2016 at? *
2,400,000
4,800,000
7,200,000
43,200,000
In relation to the above question, Assuming Pedro will use outright method in
recognizing income from leasehold improvement. Pedro shall report total income
from the lease in 2018 at? *
2,400,000
38,400,000
36,000,000
3,600,000
In relation to the above question, Assuming Pedro will use spread-out method in
recognizing income from leasehold improvement. Pedro shall report total income
from the lease in 2018 at? *
6,000,000
38,400,000
36,000,000
3,600,000
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7/10/2021 ACCO20133 FINAL QUIZ

ACCO20133 FINAL QUIZ

Capital Gains Tax on sale of land and/or building

Tax on Passive Income

Basic income tax

Capital gains tax

Either Basic Income Tax or CGT, at the option of the buyer

Either Basic Income Tax or CGT, at the option of the seller

If a real property considered as capital asset located in PH was sold to the

Basic income tax

Capital gains tax

Either Basic Income Tax or CGT, at the option of the buyer

Either Basic Income Tax or CGT, at the option of the seller

Both statements are correct

Both statements are not correct

Only the first statement is correct

Only the second statement is correct

Which of the is not an income for income tax purposes? *

Collection of loans receivable

Condonation of debt for services rendered

Excess of selling price over the cost of an asset sold

None of the above

Resident Foreign Corporation

Both Domestic Corporation and Resident Citizen

Compensation income is earned when an employer-employee relationship

I and III only

II and III only

I, II, III and IV only

Which of the following is taxable? *

Social security benefit received by a balikbayan from employer abroad at age of 30

None of the above

This pertains to the actual remuneration or earnings paid by an employer for

Full pay or full salary

Actual cash benefit received from SSS

All of the above

Which of the following is not a taxable income? *

Bad debts previously deducted as item of expense and partially recovered

Income from gambling

Income from usorious financing

It is given in recognition of religous, charitable, scientific, educational, artistic, literary

The amount of prizes does not exceed P10,000

Pedro was selected as th most outstanding "barrio teacher" in Sitio Mabato of

Subject to basic income tax

Subject to final tax

Exempt from income tax

Party taxable, partly exempt

Actual damages for injuries suffered

Compensatory damage for unrealized profit

Moral damages for grief, anxiety and physiscal sufferings

Exempt from basic income tax

Subject to fringe benefit tax if ther recepient is a managerial employee

Subject to basic income tax

Whic of the following compensation will be subject to graduated rates? *

Basic salary whether or not the employee is a minimum wage earner

Basic salary only if the employee is not a minimum wage earner

13th month pay and other benefits not exceeding P 30,000

Fringe benefits received by supervisory and managerial employee

If an individual performs services for a creditor who in consideration thereof

To a donation inter vivos

Which of the following dealings in property is subject to normal income tax? *

Sale of Ordinary Asset

Sale of real property, located in the Philippines, classified as capital asset

All of the above

Which of the following transactions is subject to 6% capital gains tax: *