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88BAMM6202 Final Exam USE THIS
Income taxation (Acc 311)
University of Mindanao
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Question 1 Complete Mark 1 out of 1.
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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 -0- b. P70, 000 c. P50, 000 d. P100, 000
Question 2 Complete Mark 1 out of 1.
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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, b. P150, c. P32, d. P63,
Question 3 Complete Mark 1 out of 1.
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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, b. P1,200, c. P1,050, d. P1,125,
Question 4 Complete Mark 1 out of 1.
Question 6 Complete Mark 1 out of 1.
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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 out of 1.
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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 out of 1.
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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 out of 1.
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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, c. P25, d. P75,
Question 10 Complete Mark 1 out of 1.
Complete Mark 1 out of 1.
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Provisions in the Philippine Constitution on taxation are grants of power.
Select one:
True False
Question 13 Complete Mark 1 out of 1.
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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 out of 1.
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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 out of 1.
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Inherent powers are exercised primarily by the legislature.
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True False
Question 16 Complete Mark 1 out of 1.
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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
Hans: Died of dengue fever on September 30
Determine the following: Net taxable income for 2016
Select one:
a. P1,200, b. P1,125, c. P1,000, d. P1,050,
Question 19 Complete Mark 1 out of 1.
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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, b. P95, c. P120, d. P225,
Question 20 Complete Mark 1 out of 1.
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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% b. 25% c. 10% d. 20%
Question 21 Complete Mark 1 out of 1.
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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 out of 1.
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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 out of 1.
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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. b. P147, 620 P22, 140 c. P240, 500 P18, 107. d. P239, 940 P14, 754.
Question 26 Complete Mark 1 out of 1.
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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 out of 1.
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The theory of taxation is based on the lifeblood doctrine.
Select one:
True False
Question 28 Complete Mark 1 out of 1.
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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
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 out of 1.
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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 out of 1.
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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 out of 1.
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Which of the following income is/are earned through employee-employer relationship? i 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 out of 1.
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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,
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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 -0- c. P500, 00 d. P400, 000
Question 37 Complete Mark 1 out of 1.
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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, b. P132, c. P d. P117,
Question 38 Complete
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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 out of 1.
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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 out of 1.
88BAMM6202 Final Exam USE THIS
Course: Income taxation (Acc 311)
University: University of Mindanao
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