Professional Documents
Culture Documents
Hungry Shark corporation, in its third year of operations, had the following data:
Gross Income, Philippines
2,000,000.00
1,000,000.00
Expenses, Philippines
1,000,000.00
Expenses, foreign
500,000.00
P1,000,000
(b) P2,000,000
(c)
P500,000
(d) P1,500,000
(2)
(a)
For domestic corporations, the capital gain tax on sale of shares of stock are the same as the capital gain on such assets of resident
citizens of the Philippines.
(b) The final tax on interest on foreign currency deposit under the expanded foreign currency deposit system for domestic corporations
is the same as that of resident citizens of the Philippines at seven and one-half percent (7 %)
(c)
Dividend received by a domestic corporation from a domestic corporation subject to tax is exempt from income tax of the
corporation receiving the dividend.
(d) Prizes exceeding P10,000 received by a domestic corporation is subject to a final tax of twenty percent (20%)
(3)
A domestic corporation, in its fourth year of operations, had the following data for the year:
Net sales
2,000,000.00
200,000.00
Capital gain on sale thru a real estate broker of land and building
outside Philippines for P5,000,000
Dividend from a domestic corporation
Interest on bank deposit
Cost of sales
Quarterly corporate income tax paid
Operating Expenses
1,000,000.00
50,000.00
40.000.00
600,000.00
190,000.00
500,000.00
The income tax still due at the end of the year is:
(a)
P125,000
(b) P80,000
(c)
P270,800
(d) P220,800
(4)
Statement 1: The minimum corporate income tax of a trading or manufacturing concern is based on gross profit from sales.
Statement 2: The minimum corporate income tax of a service concern is based on net revenues or receipts less direct costs of
services.
(a)
(d) The first statement is false but the second statement is true
(5)
(a)
A domestic corporation is subject to MCIT on gross income from within and outside the Philippines.
(b) A resident corporation is subject to the MCIT on gross income from within the Philippines.
(c)
(d) The optional gross income tax (GIT) applies to domestic and resident corporations.
(6)
Selected cumulative balances were taken from the records of Flappy Bird Corporation, a domestic corporation, in its fourth year of
operations in 2013, which had an income tax refundable of P10,000 for a preceding year for which there is a certificate of tax
credit.
The income tax due (or refundable) at the end of the year:
(a)
P321,000
(b) P371,000
(c)
P43,000
(d) P76,000
(7)
(a)
The quarterly income tax of a corporation for any of the first, second or third quarters is filed, and the tax due is paid, within sixty
(60) days after the close of the quarter.
(b) The annual income tax return of a corporation is filed, and the tax due is paid on or before the fifteenth day of the fourth month
following the close of the taxable year
(c)
There can be an income tax refundable in a quarterly income tax return of a corporation
(d) There can be an income tax refundable in the final income tax return of a corporation
(8)
One of the following statements is wrong. Identify. The improperly accumulated earnings tax imposed on corporations:
(a)
Is based on the net income per books after the income tax
All, except one, of the following, are not subject to the improperly accumulated earnings tax (IAET). Which is the exception?
(a)
Publicly-held corporations
Insurance Companies
The corporation permits its profit to accumulate beyond the reasonable needs of the business
(11)Angry Birds Inc., a domestic corporation, had the following selected data for 2009, the accumulated earnings for which year the
Bureau of Internal Revenue (BIR) considered to be improper:
Cost of Sales
2,000,000.00
110,000.00
Business expenses
1,000,000.00
50,000.00
120,000.00
60,000.00
500,000.00
150,000.00
P175,000
(b) P264,300
(c) P256,300
(d) 380,300
(12)A mother corporation is abroad, with business in the Philippines through its branch in the Philippines. Which of the following
statements is wrong?
(a)
In a year, the branch in the Philippines is subject to a profit remittance tax on its remittance of profits to the mother company
abroad, even if the profits from which the remittance was made was a prior years profits.
(b) The profit remittance tax is fifteen (15%) percent of the total amount or profit for remittance, as applied for with the bank.
(c)
The bank with which the application for remittance was filed would be the withholding agent of the Bureau of Internal Revenue
(d) Even activities registered with the Philippine Economic Zone Authority (PEZA), from the profits from which the remittance is applied
for, will be subject to the profit remittance tax.
(13)Statement 1: A private educational institution is a special corporation subject to income tax on all its income at ten percent (10%)
Statement 2: A private educational institution may be treated as an ordinary corporation subject to all the income tax rules on
corporation.
(a)
(d) Joint venture or consortium for engaging in energy operations under a service contract with the government.
(17)Temple Run Company is a general professional partnership for gaming applications, with Mr. Temple and Mr. Run as partners and
equally participating in the income and expenses. The following are the data for the partnership and the partners in the calendar
year:
P250,000
(b) P410,000
(c) P60,000
(d) P -0-
(18)Using the information on question 17, what is the income tax due of Temple Run Company:
(a)
P75,000
(b) P123,000
(c) P18,000
(d) P -0-
(19)Using the information on question 17, what is the net taxable income of Mr. Temple:
(a)
P80,000
(b) P250,000
(c) P125,000
(d) P -0-
(20)Using the information on question 17, what is the net taxable income of Mr. Run:
(a)
P80,000
(b) P250,000
(c) P125,000
(d) P -0-
(21)Zombie Tsunami Corp., a domestic corporation, is engaged in architectural design services. The following are pertinent data:
Gross receipts
5,000,000.00
200,000.00
Sales discounts
250,000.00
Cost of services
2,250,000.00
Deductions
1,000,000.00
The Optional Corporate Income Tax or Gross Income Tax of Zombie Tsunami is:
(a)
P345,000
(b) P195,000
(c) P682,500
(d) P750,000
(22)Candy Crush Inc., a domestic corporation has the following data in 2013:
Gross Sales
Cost of Sales
4,000,000.00
1,500,000.00
Business Expenses
1,000,000.00
P375,000
(b) P600,000
(c) P480,000
(d) P125,000
(23)Using the same information on question 22, the Optional Corporate Income Tax of Candy Crush assuming it is a service business:
(a)
P375,000
(b) P600,000
(c) P480,000
(d) P125,000
P6,000
(b) P12,000
(c)
P14,000
(d) P15,000
P6,000
(b) P12,000
(c)
P14,000
(d) P15,000
(26)The minimum corporate income tax for 2007:
(a)
P6,000
(b) P12,000
(c)
P14,000
(d) P15,000
(27)The normal corporate income tax for 2007:
(a)
P6,000
(b) P12,000
(c)
P14,000
(d) P15,000
(28)Reasonable needs of the business is inconsistent with the concepts of IAET when:
(a)
(b) It is not necessary for the purpose of the business considering all the circumstances of the case
(c)
The immediacy test under the American jurisprudence is adopted in Philippine jurisdiction
(d) Construed as immediate needs of the business including reasonable anticipated needs
(29)For purposes of determining the Improperly Accumulated Taxable Income for a taxable year, the following, except one, are added to
that years taxable income. Which one?
(a)
For purposes of the MCIT, the taxable year in which business operations commenced shall be the year in which the domestic
corporation registered with the BIR.
(b) Firms which were registered with BIR in 1994 and earlier years shall be covered by the MCIT beginning January 1, 1998.
(c)
Firms which were registered with the BIR in any month in 1998 shall be covered by the MCIT in 2002 after the lapse of three (3)
calendar years from 1998.
Depository banks under the Expanded Foreign Currency Deposit System (FCDS) on income from foreign currency transactions with
the local commercial banks.
(d) Firms that are taxed under a special income tax regime
(33)Which of the following need not be deducted from gross sales to arrive at gross income for purposes of computing MCIT of a
merchandising/ manufacturing concern?
(a)
Cost of sales
Cost of sales
Cost of sales
Cost of sales
Registered activity
Both activities
2% of gross income
(d) 2% of gross income for Domestic Corporations while Resident Foreign Corporations are exempted from MCIT computation.
(39)The records of DOTA Inc., a closely-held corporation, show the following calendar years:
2011:
Gross Income
Less: Expenses
Net Income
2012:
Gross Income
Expenses
3,000,000.00
2,500,000.00
500,000.00
5,000,000.00
3,000,000.00
Other income
Rent, net of 5% withholding tax
Interest on money market, net
475,000.00
80,000.00
Inter-corporate dividends
500,000.00
Additional information:
Dividends paid
1,500,000.00
st
rd
50,000.00
P70,500
(b) P83,000
(c) P101,900
(d) P103,900
P25,000
(b) P100,000
(c) P75,000
(d) P -0-
(c) P20,000
(d) P-0-
(c) P105,000
(d) P-0-
P130,000
(b) P150,000
P60,000
(b) P150,000
P8,000
(b) P40,000
(c) P32,000
(d) P -0-
P150,000
(b) P50,000
(c) P118,000
(d) P -0-
(45)Bubble Blast Company, a domestic corporation, has the following income taxes computation for the year 2013 as follows:
Year 2013:
RCIT
P50,000
MCIT
P12,000
P
P
12,000
50,000
12,000
50,000
12,000
50,000
P
P
P
62,000
50,000
12,000
38,000
(46)A tax imposed whether a corporation has zero or negative taxable income or whenever the minimum income tax is greater than the
normal income tax due from such corporation:
(a)
2008
(b) 2009
(c) 2010
(d) 2011
(48)The BIR form used by corporations to file quarterly income tax returns:
(a)
1702
(b) 1702Q
(c) 2550
(d) 2550Q
(49)The BIR form used by corporations to file its annual income tax return:
(a)
1702
(b) 1702Q
(c) 2550
(d) 2550Q
(50)According to tax code, the last payment of filing income tax returns for all corporations having calendar year or fiscal year of
reporting is:
(a)
(b) Once the income tax return, regardless of the month, is completed, it may be filed at any day of the year immediately following the
taxable year
(c)
Every April 15 immediately following the taxable year for all corporations having calendar year and fiscal year of reporting
(d) On the 15th day of the fourth (4th) month immediately following the taxable year
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