Final Examination

Kabuuang puntos36/50

AE 220 Income Taxation

Using the cash method of accounting, compute the taxable

income of Mr. A, a farmer. *
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202,000
205,000
208,000
Mali

395,000
Tamang sagot
205,000

Which is not subject to income tax? *

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Donation
Tama

Sale of service
Sale of goods
Barter of goods

The following relate to the compensation income of a

government rank and file employee during the year: Annual
compensation income P540,000, 13th month pay P45,000, 14th
month pay P45,000, Total of monthly rice allowances during
the year P26,000, Commission from employer P12,000,
Christmas gift P8,000, SSS, PhiHealth and HDMF contributions
P21,000. Compute the supplemental compensation. *
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10,000
12,000
Mali

22,000
25,000
Tamang sagot
22,000

Advance rental in the nature of prepaid rental, received by the

lessor under a claim or right and without restriction as to use
is *
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Taxable income of the lessor in the year if he is on the cash method of accounting
Taxable income of the lessor in the year if he is on the accrual method of accounting
Taxable income of the lessor in the year whether he is on the cash or accrual method
of accounting
Tama

Taxable income of the lessor up to the amount earned in the year the rental is received

Statement 1: All prizes earned abroad are subject to regular

tax. Statement 2: All prizes in the Philippines are subject to
final tax. Which statement is generally correct? *
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Statement 1
Mali

Statement 2
Both statements 1 and 2
Neither statement is true
Tamang sagot
Neither statement is true

Which is correct with regard to the final income taxation? *

1/1
Taxpayers need not file an income tax return
It covers all items of passive income from whatever sources
It applies to all items of gross income of any non-resident earned from sources within
the Philippines
Tama

It applies to passive income earned abroad

Which principle demands that tax should be just, reasonable

and fair? *
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Theoretical justice
Tama

Fiscal adequacy
Administrative feasibility
Economic consistency
A government employee received the following benefits in
2020: Gross salaries P1,044,000, RATA P12,000, PERA
P24,000, Additional compensation (ADCOM) P24,000,
Christmas bonus P87,000. Christmas gift P5,000, Laundry
allowance P4,800, Contributions to GSIS, PhilHealth and HDMF
P62,000. Determine the taxable compensation income. *
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1,009,200
Tama

1,044,000
1,068,000
1,071,200

Which is not a supplemental compensation income? *

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De minimis benefits
Tama

Honoraria
Allowances
Bonuses

Which of the following is exempt from final tax? *

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Winnings in competitions sponsored by a local trading company
Prizes in a body building competition
Dividends from a foreign corporation
Tama
Winnings from a casino

Mr. Antonio disposed his principal residence for P2,000,000

and immediately acquired a new one for P1,800,000. The old
residence cost Mr. Antonio P1,000,000 and had a fair market
value of P2,500,000 on the date of sale. Compute the capital
gains tax to be deposited in escrow. *
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0
60,000
120,000
150,000
Tama

The following relates to the compensation income of Ms.

Lamitan in 2020: Compensation P2,400,000, Contributions to
SSS, Philhelth and HDMF: Mandatory contributions P125,000,
Voluntary contributions P150,000, Contribution to PERA
P120,000, Creditable withholding taxes P190,000, Employer's
share in SSS, PhilHealth and HDMF P105,000. What is the total
exclusion in gross income? *
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225,000
230,000
395,000
Mali

465,000
Tamang sagot
225,000
A Japanese who is staying in the Philippines for 183 days is
a *
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Resident alien
Non-resident alien
Non-resident alien engaged in trade or business
Tama

Non-resident alien not engaged in trade or business

Rich Goma corporation failed to file its income tax return for
the fiscal year ending August 31, 2019. On June 6, 2020, it filed
an income tax return with a basic tax still due and payable for
the fiscal year amounting to P500,000. Compute the total tax
assessment to be paid, excluding compromise penalty. *
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653,438
653,603
Tama

660,873
689,275

The final tax rates on pre-termination of long-term deposits is

not relevant to *
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any corporation
resident citizen
Mali
resident aliens
non-resident citizens
Tamang sagot
any corporation

Which of the following is a power of the Commissioner of

Internal Revenue? *
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Assessment and collection of taxes
Enforcement of all forfeitures, penalties and fines
Interpretation of the provisions of the NIRC
Tama

Giving effect to and administering the supervisory and police powers conferred by the
NIRC and other lasws

Which taxpayer is not a natural person? *

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Resident citizen
Taxable estate
Tama

Non-resident alien engaged in trade or business

Non-resident alien not engaged in trade or business

Which is not a reportable type of gross income? *

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Passive royalties
Dividends from a foreign corporation
Rent income
Capital gains from the sale of stocks through the PSE
Tama

The following relate to the compensation income of a

government rank and file employee during the year: Annual
compensation income P540,000, 13th month pay P45,000, 14th
month pay P45,000, Total of monthly rice allowances during
the year P26,000, Commission from employer P12,000,
Christmas gift P8,000, SSS, PhiHealth and HDMF contributions
P21,000. Compute the total non-taxable compensation
income. *
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0
90,000
111,000
135,000
Tama

A taxpayer filed his income tax return in October 28, 2020. The
deadline for the return was April 15, 2020. If he has P40,000
net tax due, compute the penalties in the form of interest. *
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2,578
Tama

2,611
2,867
4,296

Which of the following is exempted from income taxation

because of absence of ability to pay? *
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Damages received from patent infringement suit
Unrealized income from investments
Mali

Gain on sale of goods

Inheritance
Tamang sagot
Inheritance
Course, Year & Section *
BSA 2D

Which of the following statements is not correct? *

1/1
Minimum wage earners shall be exempt from the payment of income tax on their
statutory minimum wage
Holiday pay, overtime pay, night shift differential and hazard pay shall be exempt
from income tax
Tama

Prizes and wards granted to athletes in local and international sports competitions and
tournaments whether held in the Philippines or abroad, and sanctioned by their
national sports associations are exclusions from gross income
benefits received from or enjoyed under the Social Security System are exclusions
from gross income
The 6% CGT does not apply to *
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Domestic corporations
Resident aliens
Non-resident citizens
Foreign corporations
Tama

Using the accrual method of accounting, compute the taxable

income of Mr. A, a farmer. *
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202,000
205,000
Mali

208,000
395,000
Tamang sagot
208,000

Mr. Palangdan purchased domestic stocks which where priced

at 150% above their par values. After two years, he sold the
stocks when the fair value doubled. he paid P7,500
documentary stamp and P10,000 commission expenses on the
sale. Compute the capital gains tax. *
1/1
143,625
152,750
153,725
222,375
Tama

Which payments made by the lessee under such terms of the

lease contract should be considered as additional rent income
of the lessor? Statement A. If a lessee paid directly to the
government the real estate tax on the property of the lessor.
Statement B. If the amount received by the lessor is in the
nature of a security deposit for the faithful compliance by the
lessee of the terms of the contract. Statement C. If the amount
received by the lessor is in the nature of a loan extended by
the lessee to the lessor.
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Only A
Only A and C
Mali

Only B and C
A, B and C
Tamang sagot
Only A

Which is covered by final tax? *

0/1
Interest income from foreign banks
Share in the net income of a joint venture
P10,000 taxable prizes from the Philippines
Share in the net income of a general professional partnership
Mali
Tamang sagot
Share in the net income of a joint venture

Nicks, a pure compensation income earner, employed in

Gayzanu Company earns P3,000 a day and had the following
items below for the year 2020. How much is his total exempt
de minimis benefits during 2020? *
1/1

43,600
73,600
Tama

103,600
Non of the choices

Kendrick received the following items during the year:

P200,000 donation from a girlfriend, P100,000 service fee from
professional services, P300,000 inheritance from his deceased
father, P100,000 income from illegal gambling, P50,000 gain on
sale of his personal car, P250,000 profits from his bar
restaurant. Compute the total income subject to income tax. *
1/1
500,000
Tama

550,000
750,000
1,050,000
Winnie, a resident citizen, deposited P2,000,000 in the 180-day
time deposit of Banco de Oro. The deposit pays 8% interest.
Compute the final tax on maturity of the deposit. *
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6,000
8,000
16,000
Tama

20,000

The 15% CGT does not apply to *

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Resident citizens dealers of stocks
Non-resident citizen dealers of cars
Mali

Resident alien dealers of computer parts

Domestic corporations dealing in real properties
Tamang sagot
Resident citizens dealers of stocks

Mr. Antonio disposed his principal residence for P2,000,000

and immediately acquired a new one for P1,800,000. The old
residence cost Mr. Antonio P1,000,000 and had a fair market
value of P2,500,000 on the date of sale. Compute the capital
gains tax that will be released to the taxpayer. *
1/1
15,000
120,000
135,000
Tama

150,000

Mr. Antonio disposed his principal residence for P2,000,000

and immediately acquired a new one for P1,800,000. The old
residence cost Mr. Antonio P1,000,000 and had a fair market
value of P2,500,000 on the date of sale. Compute the tax basis
of Mr. Antonio's new residence. *
1/1
800,000
900,000
Tama

1,000,000
1,800,000
Last Name, Given Name, Middle Initial *
Gonzales, Ella B.

First statement. PCSO and Philippine lotto winnings (of more

than P10,000) of citizens and resident aliens are excluded from
gross income in the ITR because they are exempt from tax.
Second statement. All prizes, awards, winnings are excluded
from gross income in the ITR because they are subject to final
tax. *
0/1
Both are true
Both are false
Only the first is true
Mali
Only the second is true
Tamang sagot
Both are false

Which of the following statements is correct as regards a

resident citizen? *
0/1
Income form illegal activities are subject to final tax
Mali

Income tax refunds constitute taxable income to the taxpayer

Recovery of bad debts previously written off is part of taxable income
As a rule, contest awards and prizes are subject to 20% final tax if they amount to
more than P10,000, other wise they will be part of taxable income
Tamang sagot
As a rule, contest awards and prizes are subject to 20% final tax if they amount to
more than P10,000, other wise they will be part of taxable income

After 10 years of romantic relationship, A decided to end his

relationship with B which made B very angry. B with anger in
her eyes boxed, kicked and berated A. A tried to pacify B, but
B slipped, lost control and fell to the ground requiring
hospitalization. To buy peace, A decided to shoulder the
medical expenses for the injuries suffered by B. The amount is
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Taxable income of B
Deductible expense of A
Subject to final tax
Exempt form income tax
Tama
The following relate to the compensation income of a
government rank and file employee during the year: Annual
compensation income P540,000, 13th month pay P45,000, 14th
month pay P45,000, Total of monthly rice allowances during
the year P26,000, Commission from employer P12,000,
Christmas gift P8,000, SSS, PhiHealth and HDMF contributions
P21,000. Compute the exempt de minimis benefits. *
1/1
18,000
24,000
Tama

26,000
50,000

Nicks, a pure compensation income earner, employed in

Gayzanu Company earns P3,000 a day and had the following
items below for the year 2020. How much is the income tax
liability of Nick during 2020? *
1/1

234,220
243,220
Tama

265,300
None of the choices
The following relate to the compensation income of a
government rank and file employee during the year: Annual
compensation income P540,000, 13th month pay P45,000, 14th
month pay P45,000, Total of monthly rice allowances during
the year P26,000, Commission from employer P12,000,
Christmas gift P8,000, SSS, PhiHealth and HDMF contributions
P21,000. Compute the income tax liability. *
1/1
65,250
Tama

71,250
73,000
76,500

A is engaged in the marketing of cars. When A's son got

married to the daughter of a senator, he gave the newly-
wedded couple a brand new car worth P800,000 as a wedding
gift. The value of the car is *
1/1
Taxable income to the newly-wedded couple
Deductible expense of A
Not taxable income to the newly-wedded couple
Tama

Taxable income to the couple and deductible expense of A

The following relate to the compensation income of a

government rank and file employee during the year: Annual
compensation income P540,000, 13th month pay P45,000, 14th
month pay P45,000, Total of monthly rice allowances during
the year P26,000, Commission from employer P12,000,
Christmas gift P8,000, SSS, PhiHealth and HDMF contributions
P21,000. Compute the taxable compensation income. *
0/1
541,000
565,000
Mali

572,000
586,000
Tamang sagot
541,000

Jane, a recipient of minimum wage, became a regular

employee at the start of the third quarter of 2020 when she
received a raise in pay. Based on the following information,
compute the taxable compensation income in 2020. *
0/1

52,100
72,600
75,000
Mali

127,600
Tamang sagot
72,600

Which of the following is taxable? *

1/1
100,000 interest on long-term deposit or investment
200,000 gain on sale of 10-year bonds
12,000 prize in supermarket raffle
Tama

10,000 winnings in Philippine lotto

Pedro, a non-resident citizen, lent money to Shino, a resident

Chinese. The indebtedness was collaterized by a property
located in Japan. The interest income is earned in *
1/1
the Philippines
China
Tama

Japan
Japan, China and the Philippines

Taxes that cannot be shifted by the statutory taxpayer are

referred to as *
1/1
direct taxes
Tama

indirect taxes
business taxes
personal taxes
Rich Goma corporation failed to file its income tax return for
the fiscal year ending August 31, 2019. On June 6, 2020, it filed
an income tax return with a basic tax still due and payable for
the fiscal year amounting to P500,000. Compute the interest
penalty to be imposed by the BIR. *
1/1
28,438
28,603
Tama

45,873
46,207

Which is not an element of tax? *

1/1
It must be for public purposes
It must not violate Constitutional or inherent limitations
It must be progressive by nature
Tama

It must be uniform and equitable

Mr. Palangdan purchased domestic stocks which where priced

at 150% above their par values. After two years, he sold the
stocks when the fair value doubled. he paid P7,500
documentary stamp and P10,000 commission expenses on the
sale. Compute the selling price of the stocks. *
1/1
1,000,000
1,500,000
2,500,000
3,000,000
Tama

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 *
20,000
40,000
50,000
None of the choices
Tama

Statement 1: The sale or exchange must result to an actual

gain before the 15% CGT is imposed. Statement 2: The sale or
exchange must result to an actual gain before the 6% CGT is
imposed. *
1/1
Both statements are correct
Both statements are incorrect
Only statement 1 is correct
Tama

Only statement 2 is correct

The Tax Table

Option 1
Nicks, a pure compensation income earner, employed in
Gayzanu Company earns P3,000 a day and had the following
items below for the year 2020. How much is his taxable net
income during 2020? *
1/1

1,147,400
1,177,400
Tama

1,251,000
None of the choices
Ginawa ang form na ito sa Eastern Visayas State University.