9. One of the following is not subject to income.tax a. Winnings in jueteng. b. Bribe given to a public official. Winnings in lotto amounting to P10,000. d. Wagering gains C.
9. One of the following is not subject to income.tax a. Winnings in jueteng. b. Bribe given to a public official. Winnings in lotto amounting to P10,000. d. Wagering gains C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer all of the questions. Thank you so much.
Transcribed Image Text:customers totaling to P5,000. Said amount was not accounted anymore by
Rex. How much is the taxable income of King in 2016?
30,000
86,000
C.
P 36,000
25,000
a.
d.
b.
14. Rogelio sold 200 common shares of stock of Gibsons Corporation at P115
per share. Its books of accounts showed the following record of purchases
of common shares:
Date
Purchases
January 24, 2016
February 5, 2016
April 20, 2016
200 shares at P100 per share
200 shares at P110 per share
Received 5% stock dividends
If the costing of the shares is based on the moving average method,
the gain on the sale of the shares is:
P 3,000
2,000
1,000
None
a.
C.
b.
d.
15. If the costing of the shares above are based on the first-in first-out method,
the gain on the sale of the shares is:
a.
b.
Р 3,000
2,000
1,000
3,954
C.
d.
16. The employees of PALA, Incorporated staged a strike. Mon an employee
joined the strike. After four (4) months of continued strike, Mon ran out of
money and asked financial aid from other people since he has no source of
income and needed financial assistance in order to live. He was able to
raise P3,000. When Mon filed his return, he excluded these benefits from
his gross income.
The P 3,000 is subject to final withholding tax.
b. The entire amount is not taxable because it is a donation and not
income.
c. The income is not taxable because it is neither compensation,
business, professional nor passive income.
d. The entire income is taxable because it is considered as income from
whatever source derived.
a.
CS
Transcribed Image Text:9. One of the following is not subject to income. tax-
a. Winnings in jueteng.
b.
Bribe given to a public official.
c. Winnings in lotto amounting to P10,000.
Wagering gains
d.
10. One of the following is not the major business internal revenue tax in the
Tax Code.
Value Added Tax
Excise Tax on business
a.
Income tax
d.
C.
b.
Percentage tax
11. There is an effect of a payment of dividend whern
fringe benefits are received by an employee from the company.
b.
à.
promissory notes are paid to the employees for the services he had
rendered to his employer.
a creditor condones the debt of a corporation.
a corporation condones the debt of its stockholders.
C.
d.
12. Lazaro saved the life of Cory and three others who met a car accident,
Unintentionally, it was found out that Cory is a kidnap victim of the three
men. Because of the assistance extended by Lazaro, Cory was saved and
the kidnappers were arrested by police authorities. Consequently, Cory:
gave him P50,000. The remuneration received by Lazaro is:
a. ' exempt from tax
b. subject to income tax
C.
subject to donor's tax
d.
subject to 20% final tax
13. In 2016, King, an employee of Advanced Corporation, is indebted to Philip
Corporation in the amount of P50,000. He has also a liability with Rex of
P25,000. During the year, the Board of Directors of Philip Corporation
decided to condone his liability, he being a stockholder of said corporation.
To be relieved of his liability, King was required by Rex to work in his
restaurant for two (2) months as waiter. As a consequence, King filed his
vacation leave from Advanced Corporation for the same period thereby
receiving the monetized value of his leave credits in the amount of P6,000.
While working as waiter in the restaurant, he received. tips from the
CS
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