88BAMM6202 Final Exam USE THIS PDF

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Question 1 Complete Mark 1 out of 1.Remove flagQuestion textMr. Ronald Baden, an American citizen and a resident of California, USA has business income derived in the Philippines amounting to P500, 000 for the year. He is married and has 2 minor children. How much will be allowed as his personal exe...

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Question 1 Complete Mark 1.00 out of 1.00

Remove flag Question text Mr. Ronald Baden, an American citizen and a resident of California, USA has business income derived in the Philippines amounting to P500, 000 for the year. He is married and has 2 minor children. How much will be allowed as his personal exemption for the computation of his income tax in the Philippines, if his country's tax law is granting the same exemption to Filipino citizens, except for additional exemption where his country's tax law is allowing P10, 000 per dependent child? Select one: a. P -0b. P70, 000 c. P50, 000 d. P100, 000 Question 2 Complete Mark 1.00 out of 1.00

Flag question Question text Juana, widow, earning an annual gross compensation income of P300,000 has the following dependent children in 2017: Aubrey - baby, born on January 31 Barbara - celebrated her 21st birthday last June 12 Cristeta - married on January 1 Diana - gainfully employed effective July 1 Eliza -died of dengue fever on September 30

Assuming Juana has two employers, her taxable income in 2017 is: Select one: a. P100,000 b. P150,000 c. P32,000 d. P63,000 Question 3 Complete Mark 1.00 out of 1.00

Remove flag Question text Juan dela Cruz, Filipino widower earning an annual compensation income of P1,200,000 has the following dependent children in 2016: Olaf: Baby, born on December 31 Elsa: Celebrated her 21st birthday on June 12 Ana: Married on January 1 Kristoff: Gainfully employed effective July 1 Hans: Died of dengue fever on September 30 Determine the net taxable income for 2017 Select one: a. P1,000,000 b. P1,200,000 c. P1,050,000 d. P1,125,000 Question 4 Complete Mark 1.00 out of 1.00

Flag question Question text Mirabella's husband died in April 2016, leaving seven (7) unmarried children living with and wholly dependent on her for chief support. The ages of the children are as follows: Children AgesStatus Aaa24jobless Baa22mentally retarted Caa19studying in Manila Daa10studying in their hometown Eaa8studying in their hometown Faa6studying in their hometown Gaa3taken by the grandparents for full support For purposes of taxable year 2017, how many are the qualified dependents? Select one: a. 6 b. 5 c. 4 d. 7 Question 5 Complete Mark 1.00 out of 1.00

Remove flag Question text A benefactor of a senior citizen can claim an additional personal exemption of P25,000 Select one: a. Neither true nor false b. False c. Either true or false d. True

Question 6 Complete Mark 1.00 out of 1.00

Remove flag Question text The net taxable income of regional operating headquarters by multinational companies engaged in administrative services is Select one: a. Subject to 10% income tax b. Subject to 15% final tax c. Subject to 30% corporate tax d. Tax exempt Question 7 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following is considered as taxable compensation income? Select one: a. SSS benefits b. Excess and unliquidated amount of transportation allowance paid to rank and file employee, merely as a performance of his duties c. Retirement pay under BIR approved retirement plan d. Transportation allowance paid to rank and file employee, merely as a performance of his duties Question 8 Complete Mark 1.00 out of 1.00

Remove flag Question text Statement I - Tax differs from debt, because tax is based on enacted laws while debt is based on contract Statement II - Tax differs from custom duties because tax is imposed on persons, properties or rights while custom duties are imposed only on persons and rights Select one: a. Neither statement is correct b. Both statements are correct c. Only Statement I is correct d. Only Statement II is correct Question 9 Complete Mark 1.00 out of 1.00

Remove flag Question text A native of Davao City, supporting his legally adopted son, 18 years old, not gainfully employed, studying Bachelor of Science in Accountancy at the Ateneo De Davao University, is entitled to a basic personal exemptions of Select one: a. Not determinable b. P50,000 c. P25,000 d. P75,000 Question 10 Complete Mark 1.00 out of 1.00

Remove flag Question text Statement I: All vacation leave and sick leave taken with pay are taxable compensation income Statement II: All unused vacation leave converted into cash are taxable Select one: a. Only statement I is correct b. Both statements are incorrect c. Only statement II is correct d. Both statements are correct Question 11 Complete Mark 1.00 out of 1.00

Flag question Question text During the taxable year, Mr. Francis Ko separated legally from his wife, Andrea. The legally separated spouses have five qualified dependent children. Both spouses were earning with the following gross taxable income: Mr. Francis Ko, P380,000; Ms. Andrea, P250,000. For custody, the court granted Mr. Ko the two children and Ms. Andrea the remaining three children. Meanwhile, Mr. Francis Ko is supporting his niece who is 21 years old, unmarried, and not gainfully employed. Both spouses have monthly premium payment of P150 for health and insurance. The additional personal exemption of Ms. Andrea is: Select one: a. Zero b. P25,000 c. P75,000 d. P50,000 Question 12

Complete Mark 1.00 out of 1.00

Remove flag Question text Provisions in the Philippine Constitution on taxation are grants of power. Select one: True False Question 13 Complete Mark 1.00 out of 1.00

Flag question Question text A taxpayer is classified as head of the family under the following situations, except: Select one: a. Widow with a minor child of her deceased husband on his first marriage dependent upon her for chief support b. Unmarried man with parents dependent upon him for chief support c. Legally separated spouse with a brother who is not more than 21 years old, unmarried and not gainfully employed d. Unmarried woman with illegitimate daughter Question 14 Complete Mark 1.00 out of 1.00

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Question text Statement I - The President has the power to veto any appropriation, revenue or tariff bill Statement II - The pocket veto of the President disapproves or affects only the item or items to which he/she objects. Select one: a. Both statements are correct b. Neither statement is correct c. Only Statement II is correct d. Only Statement I is correct Question 15 Complete Mark 1.00 out of 1.00

Flag question Question text Inherent powers are exercised primarily by the legislature. Select one: True False Question 16 Complete Mark 1.00 out of 1.00

Remove flag Question text Miss Cruz had recently joined the ABC Corporation as sales executive. She was advised to be retrenched because the company was losing heavily, but that she would be given a substantial separation pay. The general manager, however, suggested to Miss Cruz to file a letter of resignation from the company, instead of having been involuntarily separated as the latter would

have implications of inefficiency on her part. Miss Cruz chose to resign from the company and received the sum of P100,000 as separation pay. The above amount is Select one: a. Partially taxable b. Non-deductible expense on the part of the company c. Exempted from income tax d. Taxable in full Question 17 Complete Mark 1.00 out of 1.00

Remove flag Question text The "benefits-received theory" is the source of the "doctrine of symbiotic relationship". Select one: True False Question 18 Complete Mark 1.00 out of 1.00

Remove flag Question text Juan dela Cruz, Filipino widower earning an annual compensation income of P1,200,000 has the following dependent children in 2016: Olaf: Baby, born on December 31 Elsa: Celebrated her 21st birthday on June 12 Ana: Married on January 1 Kristoff: Gainfully employed effective July 1

Hans: Died of dengue fever on September 30 Determine the following: Net taxable income for 2016 Select one: a. P1,200,000 b. P1,125,000 c. P1,000,000 d. P1,050,000 Question 19 Complete Mark 1.00 out of 1.00

Flag question Question text Juana, widow, earning an annual gross compensation income of P300,000 has the following dependent children in 2017 Aubrey – baby, born on January 31 Barbara – celebrated her 21st birthday last June 12 Cristeta – married on January 1 Diana – gainfully employed effective July 1 Eliza – died of dengue fever on September 30 The taxable income of Juana in 2018 is: Select one: a. P87,000 b. P95,000 c. P120,000 d. P225,000 Question 20 Complete Mark 1.00 out of 1.00

Remove flag Question text The ABC Bank is a domestic bank authorized by the BSP to operate as foreign currency deposit unit. For the year 2017, it earned interest income of P100,000 from foreign currency transactions with non-residents, OBUs and other FCDUs. The rate of tax applicable to such interest income is Select one: a. 7.5% b. 25% c. 10% d. 20% Question 21 Complete Mark 1.00 out of 1.00

Remove flag Question text Statement I - Parents of the taxpayer can be both dependents and qualified dependents Statement II - The wife can claim additional exemptions when the husband is a seaman on an international vessel with income from foreign sources only Select one: a. Only Statement I is correct b. Only Statement II is correct c. Both statements are correct d. Neither statement is correct Question 22 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following is not a compensation income? Select one: a. Wages b. Professional fees c. Allowances d. Retirement pay Question 23 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following is taxable income? Select one: a. Damages awarded as a consequence of a libel and slander suits b. Prizes and awards as an awardee of Ramon Magsaysay Award Foundation c. Philippine lotto winnings d. Amounts received as returns of premium Question 24 Complete Mark 1.00 out of 1.00

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Question text What kind of income tax is subject to 2% of corporate gross income? Select one: a. Gross Income Tax b. Minimum Corporate Income Tax c. Capital Gains Tax d. Normal Corporate Income Tax Question 25 Complete Mark 1.00 out of 1.00

Flag question Question text The lease dated January 1, 2017 provided for constructions of improvements at the cost of the lessee, and the ownership will belong to the lessor at the end of 5-year lease contract. The construction of improvement which was completed at the end of the 3rd month of the contract amounted of P240, 500. The improvement has an economic life of 8 years and estimated scarp value of P560. The rent income on improvement for year 1 under each method is Outright Spread- Out Select one: a. P -0- P18, 107.50 b. P147, 620 P22, 140 c. P240, 500 P18, 107.50 d. P239, 940 P14, 754.75 Question 26 Complete Mark 1.00 out of 1.00

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Question text The following taxpayers with income within and outside the Philippines may claim basic personal exemption, except: Select one: a. Resident alien engaged in trade or business b. Citizen, whether resident or not c. Non-resident alien engaged in trade or business d. Resident alien Question 27 Complete Mark 1.00 out of 1.00

Flag question Question text The theory of taxation is based on the lifeblood doctrine. Select one: True False Question 28 Complete Mark 1.00 out of 1.00

Remove flag Question text How much of the following amounts received in 2017 will be included in the tax return for the year 2017? Rent for year 2015 P480, 000 Rent for year 2016 480, 000 Rent for year 2017 480, 000 Refundable Deposit 120, 000

Select one: a. P520, 000 b. P560, 000 c. P720, 000 d. P600, 000 Question 29 Complete Mark 1.00 out of 1.00

Remove flag Question text The following are the gross royalty income of a resident citizen for the period: Royalty income as authorP100,000 Royalty income from franchising200,000 Royalty income from gold mine500,000 Royalty income from the use of its patent100,000 The total final tax on Royalty income is Select one: a. P150,000 b. P100,000 c. P170,000 d. P130,000 Question 30 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following real properties is classified as a capital asset? Select one:

a. Real property initially acquired by a taxpayer engaged in real estate business but subsequently abandoned or become idle b. Real properties of the real estate lessor whether land and/or improvements, which are for lease or being offered for lease. c. Real property transferred through succession or donation to the heir or done who is not engaged in the real estate business with respect to the real property inherited or donated and who subsequently use such property in trade or business d. Real property transferred through succession or donation to the heir or done who is not engaged in the real estate business with respect to the real property inherited or donated and who does not subsequently use such property in trade or business Question 31 Complete Mark 1.00 out of 1.00

Remove flag Question text Statement 1 Holiday pay, overtime pay, night differential pay and hazard pay of the minimum wage earner paid on the statutory minimum wage are tax-exempt Statement 2 Minimum wage earners who received additional compensation, such as commissions and honoraria shall be subject to tax on their entire income Select one: a. Only Statement 1 is correct b. Both statements are correct c. Neither statement is correct d. Only Statement 2 is correct Question 32 Complete Mark 1.00 out of 1.00

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The Constitution grants exemption from all kinds of taxes to religious and charitable organizations. Select one: True False Question 33 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following income is/are earned through employee-employer relationship? i.Professional fee ii. Wages iii. Pension pay iv. Capital gain Select one: a. Professional and Wages only b. Wages only c. Wages and Pension pay only d. Professional fee,Wages,Pension pay only Question 34 Complete Mark 1.00 out of 1.00

Remove flag Question text During the year, Sico has the following benefits received from his employer: Rice Subsidy of P1, 000 per month P12, 000 Free housing as a requirements to perform his duty 24, 000 Clothing allowance 1,000

Transportation allowance subject to liquidation 6,000 SSS employer contribution 3,000 How much is the taxable benefits received by Sico? Select one: a. P0 b. P30,000 c. 27,000 d. 46,000 Question 35 Complete Mark 1.00 out of 1.00

Remove flag Question text An alien individual asked you to assist him in the preparation of his tax return for his income in 2017. He provided you the following information: Gross business income, PhilippinesP1,000,000 Gross business income, Canada5,000,000 Business expenses, Philippines 300,000 Business expenses, Canada 800,000 Philippine Charity Sweepstakes winnings 500,000 Singapore sweepstakes winnings 400,000 Interest income - BDO in Canada 100,000 Interest income received from a depository bank under foreign currency deposit system 300,000 The taxpayer is single, resident of Manila and had three (3) qualified dependent brothers. What amount should be reported by him as his net taxable income for 2017? Select one: a. P650,000 b. P700,00 c. P5,300,000 d. P4,850,000 Question 36 Complete Mark 1.00 out of 1.00

Remove flag Question text Sue reported the following retirement: First employment for 30years received at the age of 50 P500, 000 Second Employment for 10 years received at the age of 60 400, 000 Third employment for 10 years received at the age of 70 300, 000 How much is the nontaxable retirement for Sue? Select one: a. P300, 000 b. P -0c. P500, 00 d. P400, 000 Question 37 Complete Mark 1.00 out of 1.00

Remove flag Question text A sold his residential lot for P2,000,000. The said lot was acquired in 2000 at a cost of P1,700,000. The fair market value of the property as determined by the BIRis P2,200,000 but the fair market value as shown in the schedule of values of the City Assessors is P1,950,000. The entire proceeds were utilized for the acquisition of A's principal residence. The final tax due is Select one: a. P120,000 b. P132,000 c. P0 d. P117,000 Question 38 Complete

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Remove flag Question text Statement I: Generally, prizes and winnings are taxable income Statement II: Prizes less than P10,000 are taxable the same manner as business income Select one: a. Only statement I is correct b. Both statements are correct c. Only statement II is correct d. Both statements are incorrect Question 39 Complete Mark 1.00 out of 1.00

Remove flag Question text The following statements imply that the dependent is living with the taxpayer, except: Select one: a. The dependent parent is away from home because of work b. The dependent senior citizen stays where he/she likes to stay as his/her residence c. The dependent child is away for school or on a visit d. The dependent children are cared for by relatives because the taxpayer is forced to be away by circumstances beyond his/her control Question 40 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following compensation payments to a minimum wage earner is subject to income tax? Select one: a. Holiday pay b. Overtime pay c. No correct answer d. Night differential pay Question 41 Complete Mark 1.00 out of 1.00

Remove flag Question text In paying corporate income tax, the excess of minimum corporate income tax could be used as a deduction within three immediate succeeding taxable years and such excess could only be deducted from Select one: a. Normal Corporate Income Tax b. Minimum Corporate Income Tax c. Gross Income Tax d. Capital Gains Tax Question 42 Complete Mark 1.00 out of 1.00

Remove flag Question text The following tax payers with income within the Philippines may claim additional exemption, except: Select one: a. Non-resident alien with qualified dependent children living in the Philippines b. Resident citizen c. Non-resident citizen d. Resident alien with qualified dependent children living in the Philippines Question 43 Complete Mark 1.00 out of 1.00

Remove flag Question text Which of the following ceilings of de minimis benefits is correct? Rice SubsidyUniform Allowance Select one: a. P1,200 P3,000 b. P1,000 P4,000 c. P1,500 P4,000 d. P1,500 P3,500 Question 44 Complete Mark 1.00 out of 1.00

Flag question Question text During the taxable year, Mr. Francis Ko separated legally from his wife, Andrea. The legally separated spouses have five qualified dependent children. Both spouses were earning with the following gross taxable income: Mr. Francis Ko, P380,000; Ms. Andrea, P250,000. For custody, the court granted Mr. Ko the two children and Ms. Andrea the remaining three children. Meanwhile, Mr. Francis Ko is supporting his niece who is 21 years old, unmarried, and not gainfully employed. Both spouses have monthly premium payment of P150 for health and insurance. The allowable deduction for health and hospitalization insurance of Ms. Andrea is: Select one: a. Zero b. P3,000 c. P2,400 d. P1,800 Question 45 Complete Mark 1.00 out of 1.00

Remove flag Question text Statement 1 Sale or disposition of shares of stock outside the local stock exchange is subject to final Tax Statement 2 Gain on shares surrendered by the investor upon dissolution of the corporation is subject to final tax Select one: a. Both statements are correct b. Only Statement 1 is correct c. Only Statement 2 is correct

d. Neither statement is correct Question 46 Complete Mark 1.00 out of 1.00

Flag question Question text Northern Medical College, a proprietary educational institution, had the following financial data for 2017: Gross receipts from tuition fee paymentsP14,000,000 Itemized expenses 9,000,000 The income tax liability for 2017 would be: Select one: a. Tax exempt b. P280,000 c. P500,000 d. P1,500,000 Question 47 Complete Mark 1.00 out of 1...