Finals Tax 2 - Answer Key

PASIG CATHOLIC COLLEGE FINAL EXAM IN TAXATION 2 BSA IV – MAJOR IN ACCOUNTING CPA MONDAY, 1:30PM – 4:30PM

MARVIN

NAME: ______________________________ _____________

M.

CELEDIO,

RATING:

Multiple Choices: Select the letter of the correct answer. 1. Which of the following is included in gross income? a. Amounts received by insured as return of premium b. Life insurance proceeds c. Compensation for injuries or sickness d. Share in net income of a general professional partnership 2. For the purposes of filing estate tax return, the deadline for filing from the death of the decedent is: a. 30days b. 60 days c. 6 months d. 3 months 3. One of the following is not an ordinary deduction for purposes of Net Taxable Estate a. Funeral expenses b. Medical expenses c. Judicial expenses d. Taxes 4. Deduction for funeral expenses shall be allowed, except: a. Only if paid out of the estate b. For a non-resident alien limited to amount that was actually incurred in the Philippines c. Shall in no case to exceed 5% of the gross estate d. Shall in no case to exceed P200,000 5. Proceeds of life insurance to the extent of the amount receivable by the estate of the deceased, his executor or administrator under policies taken out by the decedent upon his own life shall be I. Part of the gross estate irrespective of whether or not the insured retained the power of revocation II. Not part of the gross estate if the beneficiary is irrevocable III. Part of the gross income if the designation of the beneficiary is revocable IV. Not part of the gross income irrespective of whether or not the insured retained the power of revocation a. I and II b. I and III c. I and IV d. Only I 6. Shares, obligations or bonds issued by a foreign corporation shall be considered as intangible personal property situated in the Philippines if, how many percent of its business is located in the Philippines?

TAX 2 (1)

a. 33% b. 50% c. 75% d. 85% 7. Estate tax is a. An excise tax b. An income tax c. A percentage tax d. A sales tax 8. I. Expenses on death anniversary of the deceased are not deductible expense from the gross estate II. attorney’s fees incurred by an heir from appearance at the trial to oppose the probate of the will of the decedent is deductible expense from the gross estate a. True, True b. True, False c. False, False d. False, True 9. One of the following is not correct DEDUCTION MAXIMUM a. Funeral expenses PhP200,000 b. Family home 2,000,000 c. Medical expenses 500,000 d. Standard deduction 1,000,000 10.The location of property is important in determining whether the property shall be included or not in the gross estate of a decedent who was a a. Resident citizen b. Non-resident citizen c. Resident alien d. Non-resident alien 11.The gross estate includes properties located in USA of a non-resident citizen. The gross income includes income earned in USA of a Filipino a. True, True b. True, False c. False, True d. False,False 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

TAX 2 (2)

32. 33. 34. 35. 36. 37. 38.s ---END-----------------------------------------------------------------------

---- Life can only be understood backwards, but it must be lived forwards. ------GOD BLESS YOU!!!---

TAX 2 (3)