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Explanations for your answers are not needed
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Explanations for your answers are not needed.
Leasehold. Rica, Lessee paid Barney, lessor, an annual rental of P240,000. In addition, Rica paid real estate tax of P8,000 on the property in Barney's name.
10 How much is the taxable income of Barney?
a. 248,000 b. P240,000 c. P232,000 d. P28,000
11. Which is not an example of excise tax?
a. transfer tax
b. value-added tax
c. income tax
d. real property tax
12. Which of the following statement is false?
a. Capital gains from sale of shares of stock not traded through the stock exchange and capital gains from sale of real property are not to be included in the computation of the gross income under Sec. 24 A.
b. Passive incomes are not included in the computation or gross income from compensation and business.
c. Fringe benefits subject to the fringe benefits tax do not include fringe benefits to rank and file employees.
d. None of the above.
13. Which of the following is not an income tax on Corporations?
a. normal tax
b. minimum corporate income tax
c. gross income tax
d. stock transaction tax
14. The minimum corporate income tax of a domestic or resident service corporation is
a. 2% of gross income.
b. 2% of gross sales.
c. 15% of gross income.
d. 15% of gross sales.
15. The general term which applies to all persons or corporations that occupy positions of peculiar confidence towards others, such as trustees, executors, guardians, or administrators, receivers, or conservators.
a. trustor
b. grantor
c. fiduciary
d. beneficiary
16. Which of the following is not treated as a corporation?
a. General partnership in trade
b. General professional partnership
c. Mutual fund company
d. Regional operating headquarters of multinational company.
17. The widow of your best friend has just been paid P1,000,000 on account of the life insurance policy of her deceased husband. She asks you whether she should declare the amount for income tax purposes or for estate tax purposes. Which statement is true?
a. The proceeds of life insurance would have to be declared for estate tax purposes if the designation of the beneficiary was irrevocable, otherwise it need not be declared.
b. The proceeds of life insurance paid to the beneficiary upon the death of the insured are exempt from income tax and need not be declared for income tax purposes.
c. Both of the above.
d. None of the above.
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10. The answer is 232000 as real estate taxes deduction will be given no matter whoever made it.
11.Real property taxes as it is charged on property and not sales transaction
12. The answer is B) as passive income is included in computation income.
13.Gross income tax as tax can be normal or minimum
14.15% of gross income
15.Trustor as position of trust
16.General proffesional partnership as it cannot be done in corporation
17.The answer is both of above as are true
