Quiz on Fringe Benefit Tax and

Dealings in Properties (ACOBA

2TAY2021 BBINCTAX)
Points:
16/35
Theories
Choose the best answer from the choices provided.
11,
Which of the following is within the scope of fringe benefit tax?Required to
answer. Single choice.
(1/1 Point)
college instructor
grocery promo dicer
accounting clerk
construction foreman (correct answer)
Correct answers: construction foreman
22,
Which of the following housing benefits is not exempt from fringe benefit
tax?Required to answer. Single choice.
(1/1 Point)
housing privilege of military officials of the Armed Forces of the Philippines
a residential property owned by the company and assigned to an officer for use as his
residence (correct answer)
housing for an employee who temporarily stays within the company premises for the
convenience of employer
housing unit located 20 meters away from the company's business premises
Correct answers: a residential property owned by the company and assigned to an officer for use
as his residence
33,
The fringe benefit tax is not a/nRequired to answer. Single choice.
(1/1 Point)
ad valorem tax
final tax
annual tax (correct answer)

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 grossed-up tax
Correct answers: annual tax
44,
What is the presumptive quarterly depreciation rate for movable
properties?Required to answer. Single choice.
(0/1 Point)
20%
10%
5%
1.25%
Your answer to question 4 is wrong. Correct answers: 1.25%
The correct answer is 5%. (correct answer)
55,
Which value should be used as a tax base to compute the fringe benefit on the
property assigned for the use of employees?Required to answer. Single choice.
(0/1 Point)
equivalent rental value of the property
cost of the property
fringe benefit value
fair market value of the property
Your answer to question 5 is wrong. Correct answers: equivalent rental value of the property
66,
Which of the following business travel expense is not subject to fringe benefit
tax?Required to answer. Single choice.
(0/1 Point)
hotel accommodation for $300 per day
inland travel expense
all of the other choices
cost of economy airplane ticket
Your answer to question 6 is wrong. Correct answers: all of the other choices
77,
Education grant to the employee or his dependent by the employer is not
subject to fringe benefit tax, except whenRequired to answer. Single choice.
(0/1 Point)
there is a written contract that the employee will remain to work for a period of time
the study grant involved is connected with the trade
the study grant is not connected with the trade
the assistance was through competitive scholarship program

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 Your answer to question 7 is wrong. Correct answers: the study grant is not connected with the
trade
88,
Which of the following statements is true?Required to answer. Single choice.
(0/1 Point)
The fringe benefit increases in direct proportion to overtime rendered.
Existing fringe benefits being provided to a managerial employee could be reduced without
violating the labor law.
The fringe benefit is strictly payable in cash.
The fringe benefit of managerial employee is exempted from income tax.
Your answer to question 8 is wrong. Correct answers: The fringe benefit increases in direct
proportion to overtime rendered.
99,
The following rules shall be observed when a capital gain or loss is sustained
by a corporation, exceptRequired to answer. Single choice.
(1/1 Point)
Only 50% of gain or loss is reportable if the asset sold was held for more than 12 months.
(correct answer)
Net capital losses are not deductible from ordinary gain or income but ordinary losses are
deductible from capital gains.
Capital losses are deductible only to the extent of capital gains.
Capital gains and losses are recognized to the extent of its full amount.
Correct answers: Only 50% of gain or loss is reportable if the asset sold was held for more than
12 months.
1010,
Onerous transfer of which of the following assets are not subject to regular
income tax?Required to answer. Single choice.
(0/1 Point)
Jewelries by a pawnshop business
Building by a spa business
Land by a realty developer
Foreign stocks by a purely employed individual
Your answer to question 10 is wrong. Correct answers: Building by a spa business
1111,
Net capital loss sustained in a particular year by a corporate taxpayer can be
carried over in _____.Required to answer. Single choice.
(0/1 Point)
the next year only
the next three years
no instance

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 the next five years
Your answer to question 11 is wrong. Correct answers: no instance
1212,
The holding period rule is only applicable to _______ gains and losses of _______
taxpayers.Required to answer. Single choice.
(1/1 Point)
capital; corporate (correct answer)
ordinary; corporate
capital; individual
ordinary; individual
Correct answers: capital; individual
1313,
I. Net ordinary loss is deductible against net capital gain. II. Net capital loss is
deductible against net ordinary gain.Required to answer. Single choice.
(0/1 Point)
Both are true
II is true
None is true
I is true
Your answer to question 13 is wrong. Correct answers: I is true
1414,
A long-term holding period meansRequired to answer. Single choice.
(0/1 Point)
at least 12 months
at most 12 months
more than 12 months
less than 12 months
Your answer to question 14 is wrong. Correct answers: more than 12 months
1515,
A short-term holding period meansRequired to answer. Single choice.
(1/1 Point)
less than 12 months
at most 12 months (correct answer)
at least 12 months
more than 12 months
Correct answers: at most 12 months
PROBLEMS

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 Compute for what is asked. Do not put any commas, peso signs and any other units of
measurement on your final answers. Round off your final answers to the nearest peso.
Problem 1
A company provided the following benefits to one of its managers. Assume the exchange rate is
$1=P50 and the foreign trip was for four days.

1616,
How much is the fringe benefit tax for the quarter?Required to answer. Single
line text.
(0/2 Points)

1717,
Compute the total deductible expense for the quarter.Required to answer.
Single line text.
(0/2 Points)

Problem 2
The following fringe benefits were provided by a company to its managerial and supervisory
employees: Assignment of residential property with zonal value of P4,524,000 and assessed value
of P4,500,000 designated for use of managerial employee. Purchase of car for P1,215,500 was
directly registered in the name of the employee.
1818,
How much is the total fringe benefit tax?Required to answer. Single line text.
(2/2 Points)

Problem 3
Mr. Reginald, a manager of Jackie Company, received the following fringe benefits during the
taxable year:

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 1919,
The monetary value of fringe benefits received during the year would
beRequired to answer. Single line text.
(2/2 Points)

2020,
The total fringe benefit tax would beRequired to answer. Single line text.
(2/2 Points)

Problem 4
Consider the following items:

2121,
Assume the taxpayer is an individual, compute the taxable income for
2019.Required to answer. Single line text.
(0/2 Points)

2222,

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 Assume the taxpayer is an individual, compute the taxable income for
2020.Required to answer. Single line text.
(0/2 Points)

2323,
Assume the taxpayer is an individual, compute the taxable income for
2021.Required to answer. Single line text.
(0/2 Points)

2424,
Assume the taxpayer is a corporate, compute the taxable income for
2019.Required to answer. Single line text.
(2/2 Points)

2525,
Assume the taxpayer is a corporate, compute the taxable income for
2021.Required to answer. Single line text.
(2/2 Points)

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