48, Ayala Land Incorporated, a real state conglomerate, acquired a fleet of vehicles for the exclusive use of its employees in line of its business. The management, however, decided to sell the vehicles to its employees. Was the transaction entered under a normal course of business? a) No, it was violative of the “Rule of Regularity” b) No, it was not undertaken in business activity. ©) No, there was an employer-employee relationship. Hence, not a business. dff Yes, it is an incidental transaction. 49, Any person shall be held liable, under sec. 105, who in the course or trade of business renders the following, but a) Sells, barters, or exchanges b) Leases goods or properties c) Renders services d) Imports goods 50, Which of the following is not considered a business activity? a) Selling of goods b) Production of goods for a consideration c) Employment d) Rendering services for a fee Page 8 of 842. Suppose Mr. Moan, instead, offered Lady Osang the necessary service of carrying on her behalf the banana inventories of the lady for the “rain coat” in exchange, how much will be the related VAT on the transaction? a) 120 Php b) 107 Php ©) 134 Php dff None 43.Suppose Mr. Moan got some 600 pesos in his pocket. If Lady Osang however accepts the money, hence, incurring a net loss of 400 pesos, how much will be the related VAT? a) 107 Php b) 72 Php c)_64 Php dff None 44. One year later, Mr. Moan and Lady Osang met again. This time, the handsome man, in gratitude for the kindness of the lady way back, decided to buy all the banana cue's in her stall worth 5,000 pesos. How much is the related VAT therefrom? aff 600 Php b) 536 Php c) 672 Php d) None 45. Suppose, however, Lady Osang, hesitant to accept the offer, instead sold her inventories worth 5,000 pesos for a loss of 20%. How much will be the resulting VAT, if any? aff 480 Php b) 429 Php ) 600 Php d) None, its on a loss 46. Sony International acquired 80% of Sony Philippines. During the year, Sony Phil's incurred advertising expenses worth P20 million. Sony International decided to subsidize the subsidiary for the amount incurred. How much output VAT can Sony international claim from the pertinent transaction? a) 2,400,000 b) 2,142,857 c) 2,688,000 d) Output VAT not allowed 47.Nokia Corporation acquired 60% of Alcatel Lucent on a condition that the latter will provide the exclusive services to the former in its mobile division. The service contract, worth P20 million, however provides that the subsidiary will receive payment from the parent on a reimbursement-on-cost basis only, without realizing profit. How much will be the related VAT therefrom? aff 2,400,000 b) 2,142,857 c) 2,688,000 d) The entity is not profit-oriented, hence, VAT not applicable. Page 7 of 8