Homework answers / question archive / De La Salle Lipa - ACCOUNTING AC 231 1) Which of the following statements is wrong? TGT & Co

De La Salle Lipa - ACCOUNTING AC 231 1) Which of the following statements is wrong? TGT & Co

Accounting

Share With

---

De La Salle Lipa - ACCOUNTING AC 231

1) Which of the following statements is wrong?

2. TGT & Co. is a general partnership in trade and in its fifth year of operations. During the current taxable year, it had a gross profit from sales and business expenses of P2,000,000 and P1,000,000, respectively. T, G, and T share equally in the profits and losses of the partnership. The income tax due of the partnership is:
3. Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.), are partners of an accounting firm. The 2020 financial records of the firm disclosed the following:

 

Service Revenue                                                          4,490,000

Cost of Services                                                           1,610,000

Operating expenses                                                         800,000

Rental income                                                                  500,000

Interest income from bank deposit                                  200,000

Interest income from FCDS deposit                                280,000

 

Ramos is also engaged in business with the following data for the year:

 

Gross Sales                                        P2,500,000

Cost of Sales                                        1,250,000

Operating expenses                                 550,000

 

How much is the taxable income of Ramos during the year?

4. Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.), are partners of an accounting firm. The 2020 financial records of the firm disclosed the following:

 

Service Revenue                                                          4,490,000

Cost of Services                                                           1,610,000

Operating expenses                                                         800,000

Rental income                                                                  500,000

Interest income from bank deposit                                  200,000

Interest income from FCDS deposit                                280,000

 

Ramos is also engaged in business with the following data for the year:

 

Gross Sales                                        P2,500,000

Cost of Sales                                        1,250,000

Operating expenses                                 550,000

 

            How much is the distributable income of the GPP?

 

5. The following passive income received by a domestic corporation shall be subject to 20 % final withholding tax, except :
6. Le Bron Corporation has the following information for the current taxable year:

 

RCIT               MCIT               CWT

1^st Quarter                   200,000           160,000           40,000

2^nd Quarter                  240,000           500,000           60,000 3^rd Quarter                  500,000           150,000           80,000

4^th Quarter                  300,000           200,000           70,000

 

Additional information:

MCIT carry-over from prior year amounts to P60,000.

Excess tax credits from prior year amounts to P20,000.

 

How much was the income tax payable for the second quarter?

7. Le Bron Corporation has the following information for the current taxable year:

 

RCIT               MCIT               CWT

1^st Quarter                   200,000           160,000           40,000

2^nd Quarter                  240,000           500,000           60,000 3^rd Quarter                  500,000           150,000           80,000

4^th Quarter                  300,000           200,000           70,000

 

Additional information:

MCIT carry-over from prior year amounts to P60,000.

Excess tax credits from prior year amounts to P20,000.

 

How much was the annual income tax payable?

8. Le Bron Corporation has the following information for the current taxable year:

 

RCIT               MCIT               CWT

1^st Quarter                   200,000           160,000           40,000

2^nd Quarter                  240,000           500,000           60,000 3^rd Quarter                  500,000           150,000           80,000

4^th Quarter                  300,000           200,000           70,000

 

Additional information:

MCIT carry-over from prior year amounts to P60,000.

Excess tax credits from prior year amounts to P20,000.

 

How much was the income tax payable for the first quarter?

9. Statement 1: Non-resident foreign corporation applies to a foreign corporation engaged in trade or business within the Philippines.

 

Statement 2: Resident foreign corporation applies to a foreign corporation not engaged in trade or business in the Philippines.

10. ABC Company and DEF Company formed a joint venture. They agreed to share profit or Ioss in the ratio of 70% and 30%, respectively. The results of operations of the joint ventures well as the co-venturers are as follows:

 

Joint Venture               ABC Co.          DEF Co.

Gross Income              P5,000,000                  3,000,000        2,000,000 OPEX                             3,000,000                 2,000,000        1,500,000

 

The income tax payable of the joint venture is:

11.Statement 1: All partnerships are taxed in the same manner as corporations.

 

Statement 2: The income of a general commercial partnership is also subject to MCIT or Regular Corporate Income Tax whichever is applicable.

12.Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.), are partners of an accounting firm. The 2020 financial records of the firm disclosed the following:

 

Service Revenue                                                          4,490,000

Cost of Services                                                           1,610,000

Operating expenses                                                         800,000

Rental income                                                                  500,000

Interest income from bank deposit                                  200,000

Interest income from FCDS deposit                                280,000

 

Ramos is also engaged in business with the following data for the year:

 

Gross Sales                                        P2,500,000

Cost of Sales                                        1,250,000

Operating expenses                                 550,000

 

How much is the distributive share of each partner in the total income of the GPP?

13. Constructive receipt occurs when the money consideration or its equivalent is placed at the control of the person who rendered the service without restrictions by the payor. The following are examples of constructive receipts, except
14. The share in the profits of a partner in a general professional partnership is regarded as received by him and thus taxable although not yet distributed. This principle is known as

15.Marlon was hit by a car driven by Jaysee causing severe injuries to the former. It was found out during trial that the driver was drunk at the time of the incident. After trial, the court awarded the following:

• P1,500,000 actual damages for hospitalization
• P300,000 exemplary damages ? P500,000 for loss of income; and ? P100,000 moral damages.

Marlon also received a cash gift of P100,000 from Jaysee. The taxable income received by Marlon is:

16.On July 1, 2016, Pedro leased his vacant lot for a period of 12 years to Juan at an annual rate of P2,400,000. It was also agreed that Juan will pay the following in 2016:

• P4,800,000 representing rental payment for two (2) years.
• Security deposit of P2,400,000.
• Annual real property tax of P30,000.

 

The lease contract provides, among others that Juan will construct a 5-storey building for parking purposes at a cost of P36,000,000. Ownership of the building shall belong to Pedro upon the expiration or termination of the lease contract. The building was completed on July 1, 2018 with an estimated useful life of 15 years.

 

Pedro shall report total income from the lease in 2016 at

 

17. Which income from sources partly within and partly outside the Philippines is allocated on the time basis?

18.Statement 1: Remuneration for services constitutes compensation income even if the relationship of employer and employee does not exist any longer at the time when payment is made between the person in whose employ the services had been performed and the individual who performed them.

 

Statement 2: In general, fixed or variable allowances which are received by a public officer or employee or officer or employee of a private entity, in addition to the regular compensation, fixed for his position or office, is compensation subject to income consequently, creditable withholding tax on compensation income.

 

19. Mr. Santiago purchased a life annuity for P100,000 which will pay him P10,000 a year. The life expectancy of Mr. Santiago is 12 years. Which of the following will Mr. Santiago be able to exclude from his gross income?
20. Annuity payments received by a taxpayer represent a part which is taxable and not taxable. Which of the following statement is correct?
21. If a corporation distributes its own treasury stocks to its stockholders, this kind of a corporate distribution which is recognized in the Tax Code is a:
22. Which of the following is taxable?
23. Which of the following is considered or construed as an example of “constructive receipt'?
24. JJ, an official of Excel Corporation, asked for an earlier retirement because he was immigrating to Canada with his girlfriend. He was paid P3,000,000 as separation pay in recognition of his valuable services to the corporation. Paul, another official of the same company, was separated for occupying a redundant position. He was given  P1,000,000 separation pay. Rene who has rendered 11 years of service and who is now 55 y/o opted to retire for the first time. He received P2,000,000 retirement pay. The total income subject to withholding tax is _
25. Which among the following dividend income is tax exempt?
    1. Pure stock dividend
    2. Pure liquidating dividend

26.Ana received the following winnings in 2018. Which of the following is subject to final tax of 20%?

27.Which of the following dealings in property is subject to normal income tax?

28.Which of the following interest income is subject to normal tax?

 

29. This refers to a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient's life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment.

30.Which among the following is part of the taxable income of an employee?

 

1. Insurance premium provided by employer on the life insurance policy of the employee where the designated beneficiary is the relative of the employee.
2. Insurance premium paid by employer on the life insurance policy of the employee where the designated beneficiary is the employer.
3. The income tax of the employee paid by the employer as part of the employee's benefit.
4. The income tax of the employee advanced by the employer, deductible against future income of the employee.

31.On July 1, 2016, Pedro leased his vacant lot for a period of 12 years to Juan at an annual rate of P2,400,000. It was also agreed that Juan will pay the following in 2016:

• P4,800,000 representing rental payment for two (2) years.
• Security deposit of P2,400,000.
• Annual real property tax of P30,000.

32.All of the following are correct except one. Which is the exception?

 

33.Pacman, a professional boxer, won in his title-bout against Timmy Bradly held at Mandalay Bay, Las Vegas, Nevada. During the year, Pacman received the following amounts:

• P25 Million as cash prize in the fight.
• P30 million from Pay Per View
• P12 million talent fee as commercial model of San Miguel Beer.

 

How much of the following amounts is exempt from income tax?

34.A taxpayer is employed by a shipping company touching Philippine and foreign ports. In 2018, he received a gross payment for his services rendered of P3,000,000. In that year, the vessels on board of which he rendered services had a total stay in Philippine ports of four months. His gross income from the Philippines was