BLT 2010 First Pre-Board February 13 (Print)

October 6, 2017 | Author: Lester Aguinaldo | Category: Expense, Tax Deduction, Taxes, Double Taxation, Gross Income
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02/13/10 First Pre-Board Examination February 13, 2010 1. On February 12, 2010. A sold his only dog to B for P20,000. The parties agreed that B will pay one day after the results of the May 2010 CPA Licensure Examination are releases while A will deliver the dog on the day B pays. If the results were released on May 25, 2010 but the dog gave birth to a puppy on May 24, 2010, which of the ff. statements are correct? a. A is entitled to the puppy because the puppy was born before the obligation to deliver arises b. A is entitled to the puppy because of the principle that accessory follows the principal c. B is entitled to the puppy because the contract was perfected on February 12, 2010 d. A is entitled to the puppy because the puppy cannot be separated from the mother dog yet 2. A pointed a gun and threatened to kill B if B will not sign a promissory note which reads “I promise to pay A, P100,000”. Out of fear, B signed the note. It turned out that two days earlier, A’s obligation to B amounting to P100,000 became due and B demanded payment. Now, A alleges compensation. Is A correct? a. Yes, because the promissory note is valid b. No, because the promissory note was signed only because there is intimidation c. Yes, provided B will agree d. No, because A’s obligation does not exist 3. A has two creditors, B and C. The obligation to B is P10,000 and to C is P12,000. Later, with the consent of A and B, W pays B P10,000. Now W and C are the creditors of A. Suppose A has only P12,000, which is correct? a. C should be preferred b. W should be preferred c. C and W should be paid proportionately d. A may choose whom to pay 4. In the ff. cases, the contract of sale with a right of repurchase shall be deemed an equitable mortgage, except when a. The vendor remains in possession of the object b. The vendee retains a portion of the price c. The price is inadequate d. The parties renew the instrument after the expiration of the period to repurchase 5. A owes B P100,000 secured by a mortgage. C, girlfriend of A, and with no interest at all in the obligation paid B the P100,000 without the knowledge of A. Which of the ff. course of action is allowed? a. C can recover P100,000 from A b. C can foreclose the mortgage c. C is subrogated to the rights of B d. C is a person who is interested in the fulfillment of the obligation 6. A owes B, P10M. At maturity, A conveyed to B a parcel of land worth P20M. In turn, B indorsed and delivered to A the share of stocks of ABC Corporation worth P10M. In this case, the transaction is a. Barter b. Sale c. Dation in payment d. Partly sale, partly barter 7. A sold his car to B “on sale or return within 10 days”. On the 7th day after delivery, the car was forcibly taken by the carnappers. In this case a. The contract of sale is terminated 1

02/13/10 b. B must still pay the purchase price c. A bears the loss d. B can refuse to pay unless A delivers another car 8. In the ff. cases, the vendor is not obliged to make delivery after perfection of the contract of sale, except a. The vendee has not paid the price b. No period for payment has been fixed in the contract c. Vendee lost the right to make use of the period to pay d. A period for the payment has been fixed in the contract 9. Statement 1- Chattel mortgage is a consensual contract and the creditor gets possession of the thing mortgaged Statement 2- Pledge is a consensual contract and gives a personal right Statement 3- Real mortgage is a real contract and creates a real right if registered with the Registry of Property Statement 4- Antichresis is an accessory contract and gives a real right a. Only one is true b. Two are true c. Three are true d. All are true 10.Which of the ff. is not correct? a. A movable or immovable property maybe the object of commodatum b. The bailor in commodatum need not be the owner of the thing loaned c. A stipulation that the bailee may make use of the fruits of the thing loaned is valid d. The bailor is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned 11.The ff. are obligation of the agent, except a. In the execution of agency, the agent shall act in accordance with the instructions of the principal b. Shall be bound to advance necessary funds, except when principal is insolvent c. Shall finish the business already begun on the death of the principal, should delay entail any danger d. In case a person declines an agency, he is bound to observe the diligence of a good father of a family in the custody and preservation of the goods forwarded to him by the owner until the latter should appoint an agent 12.To a. b. c. d.

be valid and enforceable, the ff. contracts should be in writing, except Contract to pay interest on loan Contact of donation of real property Contract giving authority to an agent to sell a piece of land Contract made consideration in marriage

13.X borrowed money from Y. X constituted a real estate mortgage over his house to secure the loan. It was stipulated that in case X could not pay the loan on time, the house would belong to Y. Which is correct? a. Y shall become owner of the house upon default by X by virtue of their written agreement b. Y shall become owner of the house by virtue of the default by X c. Y shall only enjoy the right of alienation over the land d. Y shall be entitled to the right of appropriation of the land 14.The ff. are the same, except a. Mandante and principal b. Mandatorio and agent c. Authority and power d. Cause and consideration



15.F sold and delivered to G on February 10, 2010 a cellphone for P30,000. It was agreed that C would pay the P30,000 at the end of the month of February and that F shall remain the owner of the cellphone unit until the price has been fully paid. If before the end of the month, the phone is destroyed by a fortuitous event, which of the ff. is provided for by law? a. F shall bear the risk of loss b. G shall bear the risk of loss c. They shall jointly bear the risk of loss d. All of the above are without basis of law 16.K and Q are siblings. They remain co-owners of a parcel of land which they inherited from their deceased parents. The land is adjoined by the lots of M in the north and B in the south. K sold his undivided half share of the inheritance to H. In this case, legal redemption shall be allowed in favor of a. Q b. M c. B d. All proportionately 17.X, a bride to be, rented a car from Y Car Rentals to bring her to church on February 14, 2010, her wedding day. The car and driver assigned were nowhere to be found on the scheduled day, Y Car Rentals incurs delay because a. The obligation or law expressly declares b. Time is of the essence c. The obligor has rendered it beyond his power to perform d. The date has been fixed by the parties 18.A, minor, sold the ring of his brother without authority. The ring has a FMV of P1M and SP was P600,000. The contract is a. Rescissible b. Voidable c. Unenforceable d. Void 19.Using the preceding number, the remedy is a. A can ask for annulment b. The brother can ask for annulment c. The buyer can ask for annulment d. The brother can just ignore the contract 20.Spouses H and W are under the regime of absolute community of property. H, through violence and intimidation obtained the signature of W to a contract of sale involving W’s exclusive property in favor of H. The FMV of the property is P1M but the SP is only P700,000. The sale is a. Rescissible b. Voidable c. Unenforceable d. Void 21.A owns a parcel of land which he sells to be with a 3 year redemption period. After the second year, A dies leaving his children C, D, and E as his heirs. Which of the ff. is not correct? a. A can repurchase the whole thing, so anyone among C, D, and E may repurchase the whole thing b. C can redeem his 1/3 share, D his 1/3 share, and E his 1/3 share if B does not require all of them or any one of them to redeem the whole property c. B may demand all of the co-heirs that they may come to an agreement upon repurchase of the whole thing sold d. B cannot be compelled to consent to partial redemption 3


22.A sold his car to B payable in ten equal monthly installments and with a mortgage constituted on the same property. For B’s failure to pay a month’s installment, which statement is correct? a. A may foreclose the mortgage on B’s car but he has no longer the right to recover the balance should it be sold for an amount lower than what he claims to B b. A may seek cancellation of the sale made to B c. A may seek fulfillment of the obligation of B to pay the entire purchase price d. A may seek cancellation of the sale and later on foreclose the mortgage should he find it impossible to collect from B 23.Which of the ff. is not a ground for annulment of contract a. Incapacity to give consent b. Vitiated consent c. Lesion d. Minority 24.When the sale of the piece of land or any interest therein is through an agent, the authority of the agent may be a. In a public instrument b. In a private instrument c. Either of the two d. Duly notarized 25.An a. b. c. d.

agency can be revoked at will in the ff. cases, except when A bilateral contract depends upon it The agency is on a fixed term It is a means of fulfilling an obligation already constituted The authority is granted to a managing partner appointed in the articles of partnership

26.The vendor de retro shall be entitled to redeem the object of sale within a. Four years if no period is agreed upon b. 30 days from notice of intention to repurchase c. 10 years if there is a period stipulated d. The period agreed upon 27.Which of the ff. is a common requisite of the remedies of possessory lien and stoppage in transit a. Unreasonable delay in payment of the price b. Goods are in transit c. Object must be in vendor’s possession d. Insolvency of the buyer 28.A was obliged to pay B P1M on December 31, 2010. A paid B on December 31, 2009 believing that the obligation was already due and demandable. How much may A recover from B on March 31, 2011? a. Nothing b. Legal interest for one year and 3 mos. c. P1M plus legal interest for one year d. Legal interest for one year 29.X and Y gave their consent in a contract of sale involving a property in Quezon City. In the mind of X, he is supposed to buy a Manila property which is also the same property in the mind of Y as vendor. In this case, the proper remedy to cure the mistake is a. Annulment b. Rescission 4

02/13/10 c. Reformation d. Ratification

30.One of the ff. vices of consent result to consent under duress a. Mistake b. Fraud c. Undue influence d. Intimidation 31.The ff. contracts are qualified for reformation, except a. Onerous b. Gratuitous c. Renumeratory d. Consensual 32.Statement 1- An offer becomes ineffective upon the death, civil interdiction, insanity, and insolvency of the offerer after the offeree’s conveyance of acceptance Statement 2- Consent is manifested by the meeting of the minds of the offer and the acceptance upon the object and cause of the contract a. Both are in accordance with the rule of law b. Statement 1 is in accordance with the rule of law but statement 2 is against the provisions of law c. Both are violative of the provisions of law d. Answer not given 33.X, Y, and Z are W’s sons. Upon death of W, the three sons found a last will and testament in the cabinet of W. The will showed disposition of a 30- hectare land, the only asset of W at the time of his death in favor of the ff: X-5 hectares; Y- 10 hectares; Z- 15 hectares. X felt discriminated with his share of only 5 hectares. Which is correct? a. Reformation of the instrument in order to correct the disparity in the disposal of the property b. Annulment of the instrument is the proper remedy to correct the mistake c. Rescission is the proper remedy to correct the damage on the part of X d. The law does not allow any remedy in this case 34.W sustained serious head injury while silently reviewing inside a library at the ground floor of the university, resulting from a wild baseball throw by X to Y during a practice game. Both players were found negligent in the performance of their respective play. Which is correct? a. X and Y are liable jointly and severally b. X and Y are liable jointly c. X and Y have no liability d. Only X is liable 35.A obtained and interest free loan of P50,000 from B evidenced by a promissory note payable six months after date. At maturity, A called B by phone to ask for an extension of one month and offer to pay 20% interest on the loan. Enticed by the 20% interest, B agreed to the extension of maturity. Which is correct? a. The interest is a demandable interest by virtue of an agreement b. The interest is unenforceable c. The loan is valid but interest is void d. The loan and interest are both demandable 36.A promised to deliver to B 100 sacks of palay from the former’s 2010 summer harvest. A failed to deliver what was promised due to floods which destroyed crops before harvest season. Is the obligation extinguished? 5

02/13/10 a. b. c. d.

No, generic thing does not perish No, A can still raise the same future crops Yes, the generic thing is delimited Yes, the contract is void due to non-existing object at the time of perfection

37.D is obliged to give E, at E’s option, his Rolex watch, or his Cross ballpen or his diamond ring. The diamond ring was forcibly taken by a robber and the watch by a snatcher. After D lost the watch, and the ring, the ballpen likewise could not be located despite diligent efforts of to find the same. D could no longer remember where he kept the pen. Hence, D failed to deliver any of the three items he promised. Is the obligation of D to E extinguished? a. No, E can demand the value of anyone of the three items since he has the right of choice b. No, E can demand the value of the last thing lost c. Yes, fortuitous loss extinguishes all alternative obligations d. Yes, nothing remains practicable 38.X Company bought out a competitor, Y, with a stipulation that Y should thereafter not engaged in any business in the Philippines without the consent of X Company a. The stipulation is not valid because the parties as a rule have no absolute freedom to stipulate terms and conditions in a contract b. The stipulation is not valid because this is against public policy c. The stipulation is valid because it was mutually agreed upon d. The stipulation if ratified is valid 39.A promissory note reads “I promise to pay B, P100,000 on July 30, 2010. Sgd A”. B transferred the note to C. Later, X stole it and transferred the note to Y who received the note in good faith. On maturity date, Y presented the note to A and demanded payment. A paid the note in good faith. In this case a. A’s obligation is extinguished b. C cannot collect from A c. A’s obligation is not extinguished d. C can recover only either from X or Y 40.A bought a residential house and lot from B Realty for P2M giving a downpayment of P200,000 and promising to pay the balance of P1.8M in 15 years in monthly installments of P10,000. After paying 72 installments, A defaulted in the payment of subsequent installments. Despite the grace period given, he was not able to make any further payments. Accordingly, B realty cancelled the sale. How much surrender value is A entitled to receive? a. P552,000 b. P396,000 c. P462,000 d. P506,000 41.A, a resident alien had the ff. in 2009: Gross income, Philippines Business connected expenses 1,200,000 Dividends received: -from domestic corporation (net) 60% of its income came from Philippine source 90,000 40% of its income came from Philippine source 72,000 -from resident foreign corporation (gross) 60% of its income came from Philippine source 50,000 6


02/13/10 40% of its income came from Philippine source 40,000 A’s net taxable income is a. P800,000 b. P780,000 c. P796,000 d. P750,000 42.Using the data above, the final withholding taxes on the dividends amount to a. P16,200 b. P25,200 c. P18,000 d. P26,000 43.The theory which best justifies the necessity of taxation is a. Support and protection theory b. Benefits received theory c. Life blood theory d. Reciprocity theory 44.In which of the ff. instances involving a capital asset may a taxpayer include his income as part of gross income subject to basic tax at his option? a. When it involves a gain from sale of shares of stock, not traded in the stock exchange and the gain does not exceed P100,000 b. When it involves a gain from sale of shares of stock, traded in stock exchange c. When the sale involves a real property and the selling prices is higher than its FMV d. When a real property is sold to the government or any of its political subdivision 45.Which of the ff. are elements of impact if taxation? I- Levy II- Imposition III- Assessment Collection a. I and II b. I, II, and III c. III and IV d. I, II, III, and IV


46.Which of the ff. are elements of impact if taxation? I- Levy II- Assessment III- Collection a. I only b. I and II c. II and III d. III only 47.Which of the ff. statements are correct? a. The power of taxation must first be expressly granted, either by law or by the constitution for the State to validly exercise it b. The power of taxation and police power may be exercised simultaneously c. The Philippine Gov’t may subject the land where embassies of foreign gov’ts are located to real estate taxes d. GOCCs are exempted from taxes because it would be impractical for the gov’t to be taxing itself 48.The ff. data on net income (loss), bad debt, write off and recovery show: 2009 Case A Case B Case C Net income (loss) before write off P80,000 P40,000 (P20,000) Bad debt written off and allowed as deduction 50,000 50,000 50,000 Net income (loss) after write off P30,000 (P10,000) (P70,000) 2010 7

02/13/10 Subsequent recovery The taxable recovery is Case A Case B a. P40,000 P30,000 P20,000 b. P40,000 P30,000 0 c. P40,000 P20,000 0 d. P40,000 P10,000 0




Case C

49.Which of the ff. is correct? a. A Filipino who stayed in USA for more than 180 days is a non-resident citizen b. An American who stayed in the Philippines for more than 180 days is a resident alien engaged in business in the Philippines c. A Filipino who stayed in the Philippines for more than 180 days is a resident citizen d. An American who stayed in the Philippines for an aggregated period of 180 days during the calendar year is a resident alien engaged in business in the Philippines 50.A sold his residential land, a capital asset for P 2,000,000. It was acquired in 1990 at a cost of P2,000,000. The fair market value of the land as determined by the BIR is P2,200,000 but the FMV shown in the schedule of values of City Assessor is P1,950,000. The entire proceeds were utilized for the acquisition of A’s principal residence. The final tax due is a. P120,000 b. P132,000 c. P117,000 d. P0 51.Using the above data, but only P1,600,000 was utilized for the acquisition of A’s principal residence. The final tax due is a. P24,000 b. P26,400 c. P120,000 d. P132,000 52.A, married, with 4 qualified dependent children, died on January 2, 2009. He left an estate with a FMV of P20M. The estate’s appointed administrator is B. The records of the estate show: 2009 2010 Gross Income P5,000,000 P6,000,000 Deductible expenses 3,200,000 4,300,000 Distribution to the heirs: From the estate 1,000,000 600,000 From the income of the estate 500,000 500,000 The net taxable income of the estate in 2009 is a. P280,000 b. P1,280,000 c. P1,150,000 d. P150,000 53.The net taxable income of the estate in 2010 is a. P580,000 b. P1,180,000 c. P1,050,000 d. P450,000 54.A resident citizen received a raffle prize of P40,000 from NBA while watching a basketball game between the LA Lakers and Boston Celtics in LA, California, USA. Which of the ff. statements is correct? a. The whole amount of P40,000 is part of his taxable income b. The first P10,000 is part of his taxable income while the remaining P30,000 is subject to 20% final tax 8

02/13/10 c. The whole amount of P40,000 shall be subject to 20% final tax d. The first P10,000 shall be exempt from tax while the remaining P30,000 is subject to 20% final tax 55.AB and Co., with A and B as partners and sharing profits and losses in the ratio of 55:45, respectively in a business partnership. The ff. data on income and expenses for 2010 show: Gross income P750,000 Expenses 200,000 Dividend received from a domestic corp. 20,000 Bank interest income, PNB (net) 80,000 The final taxes withheld on the respective share of A and B in the 2010 partnership income are A B a. P21,175 P17,325 b. 26,675 21,825 c. 25,025 20,475 d. 25,116.z50 20,587.50 56.Acting on the information given by A, the government seized and confiscated smuggled goods with a FMV of P15M. A’s reward will be a. P1.5M which is part of his taxable income b. P1.5M which is subject to 10% final tax c. P1M which is exempt from tax d. P1M which is subject to 10% final tax 57.Statement 1- For calendar year 2009, an individual taxpayer may claim either the itemized deduction or optional standard deduction of 40% of net sales/receipts Statement 2- For calendar year 2009, a corporation may claim either the itemized deduction or optional standard deduction of 40% of gross income a. True, true b. False, false c. False, true d. True, false 58.A cash dividend of P100,000 received by a taxpayer in 2010 from a domestic corporation whose income from Philippine source is 40% of its total income is a. Taxable in full if he is a non-resident alien b. Partly taxable if he is a resident citizen c. Taxable in full if it is a domestic corporation d. Exempt from tax if it is a non-resident foreign corporation 59.In 2009, A Enterprises paid for the annual rental of a residential house used by its general manager amounting to P340,000. The fringe benefit tax is a. P160,000 b. P145,714 c. P80,000 d. P72,857 60.A, stockholder of ABC Corporation, is indebted to ABC Corporation amounting to P25,000. At the end of the taxable year, he received a notion that the corporation cancelled his indebtedness. As a result a. A received a gift, and therefore the P25,000 is exempt from income tax b. A received P25,000 as income and therefore part of his taxable income c. A is exempt from income tax but the corporation should pay donor’s tax d. A received P25,000 as dividend and therefore subject to final tax 61.A, reported the following for the year 2009: Gross Income 5,000,000 Cost of Sales 9

P 3,000,000

02/13/10 Salaries of employees, net of P100,000 withholding tax and P50,000 SSS, Medicare and Pag-ibig premiums contributions 800,000 Fringe benefits given to rank and file employees 300,000 Fringe benefits given to managerial employees 136,000 Representation and entertainment expenses (all business connected) 100,000 Rent expense 120,000 Donation to religious charitable institutions 500,000 The amount that A will report as net income before exemptions a. P2,894,000 b. P2,997,000 c. P3,054,600 d. P3,051,000

62.A sold a personal property held as capital asset he acquired 9 years ago with an acquisition cost of P150,000 for P270,000. The payment shall be made in the ff. terms. Cash down payment of P40,000 and additional P10,000 at the end of the year of sale. The property sold has been mortgaged for P160,000 which is assumed by the buyer. The buyer issued a note payable for the balance which is to be paid equally in two years following the year of sale. The contract price is a. P270,000 b. P110,000 c. P120,000 d. P130,000 63.The taxable profit for the year is a. P120,000 b. P60,000 c. P30,000 d. P15,000 64.A Marketing incurred the ff. expenses in relation to its business during the taxable year: Provision for bad debts P15,000 R and D cost, treated as deferred expense 500,000 Contributions during the year: To the gov’t for priority programs in sports 50,000 To the gov’t for public purposes 10,000 To accredited NGOs, whose total admin expenses are 25% 100,000 To the Catholic Church for charitable purposes 6,000 Additional information: a. Allowance for doubtful accounts per aging of AR revealed a beg. and ending balances of P20,000 and P30,000, respectively b. Accumulated depreciation on machine at the beg. and end of the year amounted to P100,000 and P110,000, respectively c. During the year, the firm sold a machine with a cost and AD of P300,000 and P30,000, respectively d. Taxable income before contributions amounted to P300,000 e. The R and D cost was incurred in the preceding year but the benefit was received during the taxable year 10

02/13/10 If A Marketing is a sole proprietorship, the allowable deductions for contributions are: a. b. c. d.

P80,000 P166,000 P90,000 P30,000

65.Furthermore, the amount of deduction of gross income including contributions is a. P233,000 b. P225,000 c. P175,000 d. P200,000 66.The ff., except one are the basic principles of a sound tax system. a. It should be capable of being effectively enforced b. It should consider the taxpayers’ ability to pay c. It is generally payable in money d. The sources of revenue must be sufficient to meet government expenditures and other public needs 67.Interest income earned by a resident citizen from outside the Philippines is a. Subject to schedular tax b. Not subject to income tax c. Subject to final tax d. Partly subject to schedular tax and partly subject to final tax 68.Which of the ff. statements is not correct? a. The gov’t automatically possesses the power to collect taxes from its inhabitants b. The gov’t can enforce contribution upon its citizens only when the Constitution grants it c. Taxation power exist inseparably with the State d. The State has the supreme power to command and enforce contribution from the people within its jurisdiction 69.In a loan agreement between BSP (as borrower) and private international bulks (as lenders), it is stipulated that all payments of interest by the BSP to the lenders shall be made free and clear from all Philippines taxes which maybe imposes thereon. Is stipulation valid? a. Yes, based on international comity b. Yes, based on the doctrine of non-taxability of the government c. No, violative of the inherent limitations d. No, violative of the constitutional limitations 70.Losses from wash sales of stock or securities shall not be deductible except a. The taxpayer is a dealer of securities or stock and made in the course of business of such dealer b. The shares of stock sold and then reacquired or repurchased are identical stock certificates c. The shares of stock sold and then reacquired within a period beginning thirty days before the date of such sale or disposition d. The shares of stock sold and then reacquired within a period ending thirty days before the date of such sale or disposition 71.Taxation is an inherent power because a. It is the lifeblood of the government b. It is about the protection and benefit theory c. It co-exist with existence of the state d. It is exercised for the general welfare of the people 72.A tax is invalid in all of the ff., except a. Theory of taxation and its purposes are disregarded 11

02/13/10 b. Basis of taxation is not recognized c. Inherent and constitutional limitations are not observed d. It results to double taxation 73.Which of the ff. statements constitute tax avoidance? a. Deliberate failure of a taxpayer to pay the taxes due to the gov’t b. Connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes c. Punishable by law d. Maybe contrary to the intent of the legislature but nevertheless do not violate the law 74.Why is tax credit allowed to be availed of by certain taxpayers? a. To provide incentives, thus inducing these taxpayers to report their income from abroad b. In compliance with commitment to int’l agreement c. To provide relief from the burden of taxation d. Because it will result to double taxation 75.In our jurisdiction, which of the ff. statements maybe erroneous? a. Taxes are pecuniary in nature b. Taxes are enforced charges and contributions c. Taxes are imposed on persons and property within the territorial jurisdiction of a State d. Taxes are levied and collected by the legislative branch of the government

76.In 2009, A domestic corporation declared and paid dividends to its stockholders as follows a. To B, a resident citizen P100,000 b. To C, a non-resident citizen P100,000 c. To D, a resident alien P100,000 d. To E, a NRAETB P100,000 e. To F, a NRANETB P100,000 f. To G, a domestic corporation P100,000 g. To H, a resident foreign corporation P100,000 h. To I, a non-resident foreign corporation P100,000 How much final tax shall be withheld by the corporation? a. b. c. d.

P80,000 P90,000 P85,000 P95,000

77.The records of a domestic corporation which commenced operation in 2004 show: 2008 2009 2010 Gross Income P10M P12M P14M Allowable deductions 9.5M 12.2M 12.8M Net income (loss) P.5M (P.2M) P1.2M The income tax payable for 2010 is a. P360,000 b. P275,000 c. P35,000 d. P95,000 78.The records of A, a Filipino citizen shows the ff. for 2009: 12

02/13/10 January 1 to June 30

July 1 to

December 30 Phil




Gross income P2M P1M P1.8M P2.2M Allowable deductions 1.2M .6M 1.2M 1.2M Net income P.8M P.4M P.6M P1M If A is a resident who left the Philippines in July 2009 to reside in USA permanently, his taxable income before personal exemption is a. P1.8M b. P1.4M c. P2.8M d. P2.4M 79.Using the above data, assume instead that A is a non-resident who returned in July 1, 2009 to permanently reside in the Philippines, his taxable income before personal exemption is a. P1.8M b. P1.4M c. P2.8M d. P2.4M

80.Universal College Inc., a proprietary educational institution, is now on its 10 th year of existence. For the year 2009, its records showed that aside from TFs, it earned/incurred the ff.: Gross income-bookstore and canteen, both operated by Universal P360,000 Rent income- commercial spaces on the ground floor of the school Building, net of withholding tax 912,000 Allowable expenses, excluding dep’n of new building 2,640,000 Cost of new school building (completed and occupied on July 1, 2009; Estimated life is 10 years) 5,000,000 If the school remitted P335,000 to the BIR for its income tax liability for the taxable year 2009, and it chose to depreciate the new school building over its life instead of deducting the whole cost in 2009, its receipts and TFs amounted to. a. P2,766,875 b. P5,650,000 c. P5,760,000 d. P5,400,000



ANSWERS: (February 13, 2010) 1. B 2. A 3. C 4. C 5. A 6. B 7. C 8. D 9. A 10.D 11.B 12.B 13.C 14.C 15.A 16.A 17.B 18.C 19.D 20.D 21.

22.A 23.C 24.C 25.C 26.B 27.A 28.D 29.D 30.C 31.D 32.B 33.D 34.D 35.A 36.C 37.C 38.A 39.B 40.C 41.D 42.

43.B 44.C 45.C 46.D 47.B 48.C 49.B 50.C 51.D 52.B 53.D 54.C 55.B 56.A 57.B 58.D 59.A 60.A 61.C 62.D 63.


64.D 65.C 66.C 67.A 68.B 69.C 70.A 71.B 72.D 73.A 74.C 75.D 76.D 77.C 78.D 79.B 80.C 81.A 82.D 83.D


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