Professional Documents
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Question 2
Which is correct when a minimum wage earner derives other income outside his employment?
Question 3
Response: Capital gain from the sale of real property located in the Philippines
Question 4
Response: not deductible against gross income whether or not compensated for by Iinsurance
Question 5
Question 6
Question 7
Question 8
Eugenio, employed, derived the following income during the year:
Response: P380,000
Question 9
All income earned abroad that would otherwise be subject to final taxes it earned within the Philippines
shall be subject to progressive tax of a
Question 10
Which of the following deductions from gross compensation income is included as part of gross income
subject to regular tax?
Question 11
Question 12
In 2016, Western Heights Corporation (WHC) reported a P40,000 recovery from bad
debts that was claimed as deduction against gross income in 2012. In 2012, the write-off increased the
operating loss of WHC to P50,000. NCC was very profitable from 2013 to the present. How much of the
P40,000 recovery is subject to tax?
Response: P40,000
Question 13
Which is incorrect concerning transactions between associated enterprises?
Response: Pricing should be motivated by the need to save from total income tax.
Question 14
JB EQUIPMENT AND MACHINERY INC., domestic corporation, reported the following income in 2014
Philippines Abroad
Service fees P 400,000 P 300,000
Interest income-bank 40,000 70,000
Royalties – franchise 80,000 30,000
Response: P800,000
Question 15
Statement 2: Excess de minimis is a fringe benefit subject to the fringe benefit tax.
Question 16
Farmers, Inc. purchased an agricultural lot for P1,000,000. It was later discovered that the lot had gold
deposits. Thus its fair value increased to P4,000,000. This increase in fair value is
Question 17
Question 18
Question 19
Response: Gain from sale of real property capital assets in the Philippines
Question 20
Mr. Kennedy insured his life with his children as beneficiaries. He died after paying
P200,000 premiums. His children collected the P1,000,000 life insurance proceeds. How much will be
excluded from Mr. Kennedy 's gross income?
Response: P1,000,000
Question 21
Response: Capital gain on the sale of bonds with more than 5 years maturity
Question 22
Which of the following is not subject to regular tax of a domestic corporation or resident citizen?
Question 23
Mr. Harry, a professional practitioner, received the following from his clients:
How much will be included in Harry’s gross income for regular income tax purposes?
Response: P110,000
Question 24
Which is not an associated enterprise to the controlling individual of a holding company?
Question 25
The Paceer Security Agency (PSA) received P3,000,000 from its clients.
P2,400,000 of this was designated for salaries of guards assigned to various client establishments.
Response: P 600,000
Question 26
Response: P800,000
Question 27
Question 28
Trina resigned in 2015 after 12 years of service. She had the following income during the year:
Response: P1,560,00
Response: P 826,000
Question 30
Question 31
Question 32
Response: P605,000
Question 33
Which is a correct de minimis limit?
Question 34
Response: The compensation income of rank and file employees is subject to regular tax.
Question 35
Response: The higher between P5,000 a month or P60,000 annually or the rate fixed by the Regional
Tripartite Wage and Productivity Board
Question 36
Question 37
Question 38
Response: Capital gains from the sale of domestic stocks through the PSE
Question 39
Question 40
Fringe benefits includes
Question 41
Question 42
Question 43
Question 44
Question 45
Which of these employee benefits is subject to fWhich of these employee benefits is subject to final
tax?inal tax?
Question 46
Question 48
Response: other fringe benefits not specifically included as compensation income of managerial or
supervisory employees.
Question 49
Edwin purchased the life insurance policy of Paulo for P50,000. He continued the policy by paying
P20,000 premium after which Paulo died. Edwin collected the P500,000 proceeds of the policy.
Response: P70,000
Question 50
Response: 13th month pay and other benefits not in excess of P90,000
Question 51
Question 52
Question 53
MACTAN Corporation is engaged in the sales of goods. It reported the following summarized financial
statements during the year:
Sales P3,500,000
Less: cost of sales 2,000,000
Gross profit P1,500,000
Commission income on consignment 200,000
Interest income from customers 20,000
Interest income, net of final tax 10,000
Dividend income 50,000
Total Income 1,780,000
Less: Admin & Selling Expenses 1,000,000
Net income 780,000
Response: P1,720.000
Question 54
Corporations and individuals engaged in business or in the exercise of profession are required to report
their regular income
Question 55
Question 56
Question 57
Which is not subject to the P90,000 exemption threshold for a private employee?
Question 59
Which is included in the gross income subject to regular tax of a resident alien?
Question 60
Response: P330,000
Question 61
Question 62
Response: A director who is at the same time the Chief Executive Officer
Question 63
Question 65
All items of passive income earned abroad are subject to regular tax to
Question 66
Question 67
Question 68
Question 69
Response: Statement 1
Question 70
Question 71
Question 72
All of these are items of gross income subject to regular tax except one. Select the
exception
Question 73
Question 74
Question 75
Sarah Baby International graduated from its income tax holiday incentive and is effectively subject to tax
beginning 2015. In 2016, it collected a P4M from a P6M receivable which was written off as bad debt
expense in 2013. Before the write- off, Sarah International had P1M profit. Sarah posted profits in 2014
and 2015 in excess of its operating loss in 2013.
Response: P0
Question 76
Response: The benefits of rank and file employees are not subject to fringe benefit tax
Response: P 1,069,000
Question 78
Question 79
Mr. Smith purchased a life annuity for P1,000,000 which will pay him P100,000 a year. What will Mr.
Smith include in his gross income on the 11th year of the policy?
Response: P100,000
Question 80
Score: 1 out of 1