Professional Documents
Culture Documents
e
14. The following items are exclusions from gross income, except:
a Labor union dues
b SSS/GSIS premiums contributions
c IOUs
d Pag-ibig premiums contributions
f
15. Which of the following is part of gross income?
a PCSO and Phil Lotto winnings
b Bank interest on long term deposit
c Proceeds of life insurance
d Raffle prize not exceeding P10,000
g
16. If refunded, this is taxable:
e
28. Gross benefits received by officials and employees of public and
private entities as 13th month pay and other benefits, such as
productivity bonus, service incentive pay and Christmas bonus shall be
excluded from taxable income up to:
a P20,000 c P40,000
b P30,000 d P50,000
e
31. Should the lessee make permanent improvements on the property
leased under an agreement that upon the expiration of the lease
contract, the improvements shall belong to the lessor, lessor ay
recognize income from the leasehold improvements
A. As the time when such improvements are completed the fair market
value of such improvements
B. By spreading over the remaining term of the lease the estimated
depreciated value of such improvements at the termination of the
lease and report as income for each year of the lease an aliquot
part thereof
33. In 2014, A inherited pieces of jewelry from her father with a FMV of
P500,000. Her father acquired the property in 1975 for P200,000. If A
sells these pieces of jewelry in 2014 for P550,000, A’s gross profit is
a. P350,000 c. P550,000
b. P50,000 d. P300,000
34. Using the preceding no., except that A acquired the property as a
birthday gift from her father the profit is
a. P350,000 c. P550,000
b. P50,000 d. P300,000
35. One of the following may be taxable income for a resident individual
a. Property received as a gift
b. Cash received as inheritance
c. Interest on Phil. Lotto winnings
d. Benefits from SSS and GSIS
e.
36. One of the following represents taxable income:
a. Refund of overpaid rental expense in prior year
b. Refund of donor’s tax in prior year
c. Refund of income tax in prior year
d. Refund of special assessment paid in prior year
e.
37. Cash allowance of P125 per month given to Central Bank employees
to cover the medical expenses of their dependents shall be:
a. Included as part of the gross compensation income
b. excluded as part of the gross compensation income
c. partly included partly excluded as part of the gross
compensation income
d. subject to final tax
e.
38. At the testimonial dinner for new CPAs, C, reviewer, was requested
to sing he theme song of the movie “Ghost”. A was so delighted that
she feels that she is falling in love with C so she decided to cancel C’s
indebtedness to her. As a result,
a. C realized a taxable income as compensation for services
b. If C accepts the cancellation, he will pay donor’s tax
c. C received a gift from A and therefore not part of his taxable
income
d. The amount of indebtedness cancelled is partly taxable, partly
exempt
e.
39. A, was adjudged the best boxer in the recently concluded Asian
games. In recognition of his splendid performance, he was awarded a
trophy and a cash prize of P1M. as a result,
a. The value of the trophy and the cash prize are part of the taxable
income
b. Only the value of the trophy is taxable
c. Only the cash prize is taxable
d. Both are exempt from income tax
e.
40. A purchased a life annuity for P1,000,000 which will pay him
P100,000 a year. The life expectancy of A is 12 years. Which of the
following will A be able to exclude from his income?
a. P1,000,000 c. P200,000
b. P1,200,000 d. P100,000
e.
41. If an individual performs a service for a creditor who in
consideration thereof cancels the debt, the cancellation of
indebtedness may result to
e.
42. A transferred his commercial land with a cost of P600,000 and with
a fair market value of P900,000 to ABC corp. in exchange of the stock
of the corporation with par value P800,000. As a result of the transfer A
gained control over the corporation. As a result
a.
b. The gain is the difference between the par value of the shares of
stock and the cost of the land
c. The loss is the difference between the FMV of the land and the
par value of the stocks
d. No gain because the land was in exchange of purely shares of
stock and A becomes the majority stock holder
e. No loss because the par value of the shares is greater than the
cost of the land
f.
43. This is not part of gross compensation income
a. Salary of P10,000 a month of an employee
b. Fringe benefits of P10,000 a month
c. Salary of P10,000 a month of a partner in a general professional
partnership
d. Honorarium and allowances of P10,000 of a member of the board
of directors of a corporation
e.
44. Mr. A, a farmer, had the following date for the year:
a. Sales of livestock and farm products raised
P270,000
b. Sales of livestock and farm products purchased
160,000
c. Cost of raising livestock and farm products
190,000
d. Cost of livestock and farm products purchased and
sold 140,000
e. Rental Income from farm equipment
105,000
f. Inventory of livestock and farm products, Jan 1
110,000
g. Inventory of livestock and farm products, Dec 31
113,000
h.
A. Using the cash method of accounting, the income is:
i. P205,000 j. P208,000
k. P395,000 l. P202,000
a. P205,000 c. P395,000
b. P208,000 d. P202,000
45. Give the income tax due (refund) for the taxable year:
a. A, a resident alien, single ha the following during the year:
1. Salaries (net of payroll deductions), P200,000
2. Allowances P25,000
3. 13th month pay, P26,000
4. Christmas cash gift of P5,000
5. 14th month pay, P26,000
6. Payroll deductions
e. a. withholding tax on salary. P16,500
f. b. Contributions for SSS, PHIC, PAG-IBIG and labor
Union dues, P16,000
g. c. Advances/loan, P30,000
7. Prem. Om health and hospitalization insurance, P2,750
8. Bank interest Income
h.
b. A, a resident citizen, single had the following during the year:
i. Gross compensation income
P220,000
j. Deductions from compensation income:
k. SSS contributions P
3,600
l. Pag-ibig contribution
1,200
m. Philhealth contributions
1,800
n. Union dues
2,400
o. Premium payments on health insurance (250/month)
3,000
p. Other income
q. Prizes and awards received as best athlete
r. in the Palarong Pambansa
10,000
s. Prizes and awards received for the silver medal
t. In South East Asian Games
25,000
u. Prize won in a supermarket raffle
10,000
v. Prize won as a lucky home winner
20,000
w. 13th month pay
14,000
x. Christmas cash gift
10,000
y. Mid year bonus
14,000
z. Interest on bank deposit (net of 20% wt)
16,000
aa. Interest on foreign currency deposit (net of
7.5%wt) 10,000
ab.
c. D, a resident citizen, married with 2 qualified dependent children,
had the following:
ac. Professional fees P400,000
ad. Gross income from rental of conjugal property
600,000
ae. Expenses connected with profession
180,000
af. Expenses connected with rental properties
200,000
ag. Tax withheld on professional fees
40,000
ah. Tax withheld on rental properties
30,000
ai.
d. D, married with 4 qualified dependent children, had the
following:
aj.
ak. Compensation income, net of P19,000
al. SSS, Philhealth and Pag-ibig contributions
P305,000
am. 13th month pay
27,000
an. Premium payments on health insurance
27,000
ao. Productivity bonus
2,400
ap. Personal, family and living expenses
200,000
aq.
46. A leased her lot as follows:
ar. Lessee X
bi.
bk.
bx.
by.
cb.