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FINAL PRE-BOARD EXAMINATIONApril 21, 2012

1. P appointed A as commission agent to sell P’s goods for P10,000 cash. A however sold the goods on credit for P11,000 without P’s consent. Based on the foregoing facts, which of the following is correct?

a. P may demand immediate payment of P11.000 cashb. P may demand immediate payment of P10,000 cash and collect P1,000 laterc. P may ratify the sale on credit for P11,000 and immediately demand P10,000 from Ad. A is entitled to the excess of P1,000 if P did not ratify the sale on credit

2. A, bought a residential house and lot from B Realty for P2M giving a down payment of P200,000 and promising to pay the balance of P1.8M in 15 years in monthly instalments of P10,000. After paying 72 installments A defaulted in the payment of subsequent instalments. Despite the grace period given, he was not able to make any further payments. Accordingly, B Realty cancelled the sale. How much cash surrender value is A entitled to receive?

a. P552,000b. P396,000c. P462,000d. P506,000

3. Which of the following is not a requisite to make an instrument negotiable?a. If addressed to a drawee, he must be named or otherwise indicated therein with reasonable

certainty.b. It must contain an unconditional promise or order to pay a sum certain in money.c. Where the instrument is payable to bearer, the payee must be named or otherwise indicated

therein with reasonable certainty.d. Where the instrument is payable to order, the payee must be named or otherwise indicated

therein with reasonable certainty.

4. M, makes a negotiable promissory note payable to the order of P. P made a special indorsement to A. A made a qualified indorsement to B, a minor. Subsequent indorsements are from B to C, C to D, and D to E, all by special indorsement, then E made a qualified indorsement to F. Which of the following statements is correct?

a. The indorsement made by B transfers title to C, hence B is liable as an indorser.b. F can hold E liable if M dishonors the instrument.c. In case M dishonors the instrument, F can hold all indorsers liable except B.d. The qualified indorsers A and E and minor B are not liable to F.

5. His warranty extends in favour only of the immediate transferee and to no other holdera. Qualified Indorserb. General Indorserc. Person negotiating by deliveryd. Person negotiating by blank indorsement

6. Which of the following statements pertaining to treasury shares is correct?a. Treasury shares are not part of issued capital stock.b. Treasury shares may not be disposed of at a price lower than the par or issued price even if it

is reasonable and approved by the board of directors.c. Treasury shares are entitled to vote.d. Treasury shares, once disposed of, entitle the purchaser or transferee the right to dividends.

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7. Which of the following is not a negotiable instrument?a. “Pay to B or order P1,000 in 4 equal monthly instalments.”

To: X Sgd. Ab. “Pay to B or order P1,000 and debit my account thereafter”

To: X Sgd. Ac. “Pay to the order of B within 6 months from date the sum of P1,000 at 12% per annum”

To: X Sgd. Ad. “Pay to B or bearer P1,000 one year after date. If not paid when due, I agree to pay collection

and attorney’s fees”To: X Sgd. A

8. Holder H altered the amount of a negotiable note from P10,000 to P110,000 then negotiated the note to P. As a result,

a. If P is a holder in due course, he can require the maker to pay P110,000.b. If P is not a holder in due course, he can require the maker to pay only the original sum of

P10,000.c. P cannot require the maker to pay because of alteration whether or not he is a holder in due

course.d. If P is a holder for value, he can collect P110,000 from H.

9. A is a maker and B is payee of a negotiable promissory note payable to order. There is no valuable consideration for the note B delivers the instrument to C, without indorsement, under circumstances that otherwise would have made C a holder in due course such as, that C did not know of the absence of consideration. May C recover from A?

a. Yes, because A’s personal defense cannot be used against C.b. Yes, because the promissory note is negotiable.c. No, because A has a real defense which can be used even against a holder in due course.d. No, because C acquires only B’s rights and A can set up against B the defense of absence of

consideration.

10. The following statements pertain to a voting trustee, excepta. The representative acquires legal title to the shares.b. It is good only for the meeting for which it was intended.c. It is generally irrevocable and the representative may vote even in the presence of the

stockholder.d. The agreement giving the representative the power to vote must be duly notarized and a

copy thereof must be submitted to the SEC to be effective and enforceable.

11. The articles of incorporation of ABC Corporation provides for 7 directors. In the monthly meeting of the board of directors held on April 8, 2009, directors B, C, D and E were present and the following resolutions were approved:

a. A resolution for the purchase of a delivery truck from E Trading, a sole proprietorship owned by E. B, C, D and E voted for the resolution.b. A resolution appointing T as the new corporate secretary where B, C, D and E voted for the resolution.

Which is correct?

a. Both resolutions are valid and do not need stockholders approval.b. Both resolutions are valid but need stockholders approval.c. Resolution a needs stockholder approval. Resolution b is valid.d. Resolution a is not valid. Resolution b needs stockholders approval.

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12. This vacancy in the board of directors may be filled by the board of directors if the remaining directors still constitute a quorum.

a. Removal of a directorb. Death of a directorc. Increase in the number of directorsd. Expiration of the term of a director

13. M issues a promissory note payable to P or bearer. Which of the following is not correct?a. If indorsed by P to A and A also indorses it to B, B may negotiate the note to C by delivery.b. If indorsed by P to A and A also indorses it to B, P is liable to A and B.c. If indorsed by P to A and A also indorses it to B, and B negotiates the note to C by delivery. A

is liable to B and C.d. If P negotiates the note to A by delivery and A indorses it to B, B may negotiate the note to C

by delivery.

14. Which of the following is not correct?a. Where the instrument is negotiated back to prior party, all intervening indorsements are not

necessary to the holder’s title.b. Where the instrument is originally payable to order, the holder may not strike out the payee’s

indorsement.c. The indorser whose indorsement is struck out and all the indorsers are thereby relieved from

liability on the instrument.d. The holder may at any time strike out an indorsement which is not necessary to his title.

15. Statement I – A majority of the number of directors or trustees as fixed in the articles of incorporation shall constitute a quorum for the transaction of corporate business, and every decision of at least a majority of the directors or trustees present at a meeting at which there is a quorum shall be valid as a corporate act, except for the election of the officers which shall require the vote of majority of all the members of the board.Statement II – No person convicted of final judgment of an offense punishable by imprisonment for a period exceeding five years or a violation of the corporation code committed within six years prior to the date of his election or appointment, shall qualify as a director, trustee or officer of any corporation.

a. True, Trueb. True, Falsec. False, Trued. False, False

16. M makes and delivers a promissory note payable to the order of P. P indorses the note to A. Later, S steals the note and negotiates the same to B by forging A’s signature. Thereafter, B negotiates the note to C, C to D and D to E, a holder in due course. Which of the following statements is correct?

a. E can hold M and P liable because their signature are genuine.b. E cannot hold B, C and D liable because they have no participation in the commission of the

forgery.c. E can enforce the instrument only against S, the forgerd. E can enforce the instrument against S, B, C and D but not against M, P, A.

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17. P, O and A are partners in an import and export business. Customers desiring to place an order for imported articles are always required to make a deposit of 25% of the total cost of the order. B, a regular customer, deposited P6,000 to P for his order. P, instead of turning over the said amount to the partnership, misappropriated it. As a result, one is not correct

a. B may institute a claim against the partnership and all the partners.b. The personal liability of the partners is joint.c. The partnership is bound to make good the loss where one partner acting within the scope of

his apparent authority receives money or property of a third person and misapplies it.d. All the partners are liable solidarily with the partnership for everything chargeable to the

partnership.

18. The duty to make disclosure, where otherwise there would be a great and unfair relation of directors to stockholders.

a. Special Circumstances Ruleb. Trust fund theoryc. Doctrine of corporate opportunityd. Incorporation Theory

19. M makes a promissory note payable to the order of P for P5,000. After delivery to P, P changed the amount to P50,000. Thereafter, P indorsed the note to A, A to B, B to C, C to D and D to E. The parties subsequent to P were not aware of the alternation made by P. Which of the following statement is correct?

a. E can hold M liable for P50,000 if E is a holder in due courseb. E can hold M liable for P5,000 if E is a holder is due coursec. E can hold M liable for any amount if E is not a holder in due coursed. E can hold A, B, C and D liable for P50,000 provided E is a holder in due course

20. A contract where the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of interest if owing, and thereafter to the principal of his credit is

a. Antichresisb. Usufructc. Real estate mortgaged. Commodatum

21. A holder is a holder in due course if he has taken the instrument complete and regular on its face and three of the following conditions, except

a. That he became the holder of the instrument before it was dishonored and without that it had been previously dishonored if such was the fact

b. That he took it in food faith and for valuec. That there is negotiation to him before it became overdued. That at the time it was negotiated to him, he had no notice of any infirmity in the instrument

or defect in the title of the person negotiating the same

22. M executes a promissory note for P10,000,000 payable to the order of P. M and P had a private understanding that M is liable only for the discounted amount of P9,500,000. P indorsed the note to A, A to B, B to C, C and D and D to H, holder. As a result,

a. M may refuse to pay H if P is a minorb. If M dishonors the note, A may refuse to pay H on the ground that A is a remote partyc. The indorsement made by P passed title to the instrument in favor of A even if P is a minord. M is liable to H for P9,500,000 since that was the amount that he agreed with P that he

should pay

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23. A pledged his ring to B for P20,000. A failed to pay his obligation. B sold it at a public auction for P18,000. Can B recover the deficiency?

a. Yes, even without stipulationb. Yes, if there is stipulationc. No, even if there is stipulationd. No, unless there is stipulation

24. Using the above data, if the sale is P22,000. Can A recover the excess?a. Yes, even without stipulationb. Yes, if there is stipulation c. No, even if there is no stipulationd. No, if there is stipulation

25. C mortgaged his car to B for P200,000. C failed to pay his obligation. B sold it at a public auction for P180,000. Can B recover the deficiency?

a. Yes, even without stipulationb. Yes, only if there is stipulationc. No, even if there is stipulationd. No, unless there is stipulation

26. Using the above data, if the sale is for P220,000, can C recover the excess?a. Yes, even without stipulationb. Yes, only if there is stipulationc. No, even if there is stipulationd. No, unless there is stipulation

27. Any director of a corporation maybe removed from office by a vote ofa. Majority of the members of the boardb. Majority of the stockholders presentc. 2/3 of the stockholders presentd. 2/3 of the outstanding capital stock

28. A, B and C are partners in a universal partnerships of profits engaged in operation of taxis. The partners contributed:

A- 100 Toyota ViosB- 3,000 sqm landC- Fuel and oils

Which of the following is correct?a. In case of loss due to fortuitous event, the partnership bears the lossb. The partnership becomes the owner of the things contributed to the partnershipc. The partners retained the ownership over the things they contributed hence, they will bear

the risk of lossd. The partnership begins from the moment of the execution of the contract, except if

stipulated otherwise

29. As regards cash dividends, which of the following is correct?a. Declared by the board by majority vote and ratified by the stockholders by majority voteb. Declared by the board by majority vote and ratified by the stockholders by 2/3 vote of the

outstanding capital stockc. Declared by the board by majority vote and need not be ratified by the stockholdersd. Declared by the board by 2/3 vote and need not be ratified by the stockholders

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30. Which of the following statements is not correct?a. An agreement to constitute a commodatum is binding and is perfected from the moment

there is meeting of mindsb. Fixed, savings, and current deposits of money in banks and similar institutions shall be

governed by the provisions concerning mutuumc. Precarium is a kind of commodatum where the bailor may demand the thing loaned at willd. In case of extraordinary expenses, the debtor in mutuum will shoulder 50% if he is in actual

use of the thing borrowed

31. A contributed P1M, B contributed P1M, and C contributed services. They agreed to divide the profits and losses equally. In case of loss of P3M, for how much, if any, is C liable?

a. Nothing, because an industrial partner is exempt from lossesb. P1M but with reimbursement from A and B equallyc. A and B shall shoulder the loss equally at P1.5M eachd. P1M, as stipulated

32. As regards the corporate by-laws, which of the following is true?a. To adopt, amend or repeal- 2/3 of the outstanding capital stock is neededb. To delegate to the board of directors the power to amend, repeal or adopt new by-laws,

majority of the outstanding capital stockc. To revoke the power delegated to the board to amend, repeal or adopt new by-laws, 2/3 of

the outstanding capital stockd. To amend, repeal or adopt new by-laws, majority of the outstanding capital stock

33. A contract of antichresis isa. A contract of mortgage whereby possession of the mortgaged property is given to the

creditorb. A contract of loan secured by a real property; where possession is retained by the debtorc. A contract of loan without securityd. A consensual contract as it is perfected by mere consent

34. A subscribed to 1,000 voting shares of stock of X Corporation. She paid 25% of the said subscription. During the stockholders meeting, can A vote all her subscribed shares?

a. No, because the subscription has not yet been fully paidb. No, because A’s shares have become delinquent which cannot be votedc. Yes, as to the paid percentage of subscriptiond. Yes, because unpaid shares not delinquent can be voted

35. A was having his house repaired by B, who needed construction materials, so A orally told the seller C, “Give B the materials, I shall be responsible. I shall pay in 30 days. C delivered the materials. As a result,

a. The contract is unenforceable because A made an oral agreement to answer for the debt of Bb. The contract is unenforceable because A did not make a special promise to answer for the

default of another personc. The contract shall be enforceable if there is ratification by Ad. The contract shall be unenforceable if the value is at least P500.00

36. In which of the following is demand necessary to make the debtor in delay in the performance of his obligation?

a. When the time of performance is of the essenceb. When the time of performance has been stipulatedc. When the law so providesd. When demand would be useless

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37. P appointed A1 and A2 as his agents for a common transaction and they agreed that they shall be solidarily liable to P for damages in case of violations of their obligation as such. When is the agent at fault the only one liable for damages even if solidarity has been stipulated?

a. If the other agent is not at faultb. Both of them shall be liable always since solidarity was agreed uponc. If the one at fault shall answer for all the damagesd. If the one at fault acted in excess of authority

38. A and B are co-owners of a parcel of land from where they share the profits equally as co-heirs in inheritance. Is there a partnership?

a. There is a prima facie presumption of partnership because of the equal sharing of profitsb. There is no partnership because co-ownership by itself does not establish a partnership

despite the sharing of profitsc. There is no partnership since in partnership, division of profits is not always necessary among

partnersd. There is prima facie presumption of partnership they being co-owners and co-possessors

39. A and B are partners in AB partnership. While A was performing his duties as a partner in the course

of business, he negligently caused damages to X, a third person. Who shall be liable to X and up to what extent?

a. Only the partnership shall be liable it being a juridical person separate and distinct from the partners

b. Only A shall be liable for he is the only one at faultc. Both A and B shall be liable solidarily to Xd. A, B, and the Partnership are all liable solidarily to X

40. In the matter of management of the corporation, this is supreme:a. Presidentb. Chairman of the Board of Directorsc. Stockholdersd. Board of Directors

41. Which of the following statements is not correct?a. Compensation income of individuals that do not exceed the statutory minimum wage is

exempt from the requirement of withholding tax on compensationb. Compensation income of individuals that do not exceed ten thousand pesos per month is

exempt from the requirement of withholding tax on compensationc. Holiday pay, overtime pay, night shift differential pay and hazard pay received by individuals

shall be exempt from income taxd. Minimum wage earners who are receiving only the statutory minimum wage are not subject

to withholding tax and consequently to income tax

42. ABC, a bed proprietary hospital organized in 2000, had the following data for 2011:Gross receipts from patients and laboratory services P8.5MRental Income (net of 5% w/t) 1.425MTotal hospital expenses 8.2M

The income tax still due for 2011 is:a. Php 540,000b. Php 105,000c. Php 180,000d. Php 465,000

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43. A filed his income tax return for calendar year 2007 on March 20, 2008. When is the last day for the BIR to collect, assuming A did not pay the tax due upon filing?

a. March 20, 2011b. April 15, 2011c. April 15, 2013d. March 20, 2013

44. Using the data above data, assuming A filed his income tax return on April 20, 2008 and the return is not fraudulent, when is the last day for the BIR to make an assessment?

a. April 20, 2011 c. April 20, 2013b. April 15, 2011 d. April 15, 2013

45. Using the data above data, if the BIR issued a deficiency income tax assessment on March 10, 2010, when is the last day for the BIR to collect?

a. March 10, 2013b. April 15, 2013c. March 10, 2015d. April 15, 2015

46. The export sales of a vat registered enterprise isa. Exempt from the vat b. Subject to 0% vatc. Subject to 12% vatd. Subject to percentage tax

47. A filed his ITR for 2011 on April 15, 2012 and will pay his tax liability in instalment. The return shows an income tax due of P100,000 and income tax withheld of P60,000. If A pays the 2nd installment only on October 15,2012, the amount to be paid (excluding compromise penalty) is

a. P26,000b. P35,000c. P55,000d. P52,000

48. The DOC restaurant, a VAT-registered taxpayer, issued the following official receipt dated April 18, 2012:

2 pieces crispy chicken P200.00Siomai special 45.00Sago-gulaman 85.00Mushroom and chicken soup 100.00Braised beef with cauliflower 240.00Coke light in can (2xP40) 80.00 P750.00Local tax 15.00Service charge 60.00Total P825.00

The output vat on the sale isa. P99.00b. P88.39c. P80.36d. P81.96

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49. Which of the following properties owned by a non-resident alien decedent is not subject to the rule on reciprocity?

a. Shares of stock in a Philippine domestic corporationb. Investment in stock in a US corporation 80% of the business of which is in the Philippinesc. Investment in bonds in a US corporation that have acquired business situs in the Philippinesd. 40% share in a Philippine partnership

50. Due to financial difficulties, ABC Corp requested that its 2011 income tax liability of P400,000 be paid in four (4) equal monthly instalments, starting April 15, 2012. Its request for instalment payment was approved on April 8, 2010. The tax due on May 15, 2012 is

a. P100,000b. P101,667c. P105,000d. P106,667

51. Mr. Bagongbahay acquired his old principal residence in 1990 at a cost of P4M. He sold the said property on January 1, 2010 for P16M, although the FMV on that due was P20M. Within the reglementary period, Bagongbahay acquired his new principal residence for P12M. Which of the following is incorrect?

a. Bagongbahay has to pay capital gains tax of P300,000b. The cost basis for the new principal residence is P3.2Mc. The utilized amount of the gross selling price is P12M.d. If the proceeds were not used to buy a new principal residence, the capital gains tax should

have been P1.2M

52. On April 15, 2010, A filed his income tax return for his 2009 income and paid the tax due thereon. In 2011, A discovered that he made an overpayment in his income tax return. He filed a written claim for refund of tax erroneously with the CIR on October 1, 2011. On April 14, 2012, without receiving a decision on his claim for refund, A filed in the CTA a petition for review on his claim for refund of tax erroneously collected. Which of the following is correct?

a. The CTA did not acquire jurisdiction over the petition for review because the appeal is premature, there being no decision yet on said claim for refund

b. The CTA’s jurisdiction is to review by appeal decisions of the BIR Commissioner so if there is no decision, there is nothing to review

c. The CTA acquired jurisdiction over the petition since it is the right of a taxpayer to go to the CTA with or without decision rendered by the BIR Commissioner

d. The CTA acquired jurisdiction over the petition as the peremptory period of 2 years within which a claim for refund is about to expire and the failure of the CIR to act on the claim is tantamount to denial of the claim

53. A sold a personal property held as capital asset he acquired 9 years ago with an acquisition cost of P150,000 for P270,000. The payment shall be made in the following terms. Cash down payment of P40,000 and additional P10,000 at the end of the year of sale. The property sold has been mortgaged for P160,000 which is assumed by the buyer. The buyer issued a note payable for the balance which is to be paid equally in two years following the year of sale. The contact price is

a. P270,000b. P110,000c. P120,000d. P130,000

54. The taxable profit for the first year isa. P120,000b. P60,000c. P30,000d. P15,000

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55. XYZ corporation filed its income tax return and paid the tax due for calendar year 2011 showing a tax liability of P175,000. However, upon audit, it was discovered that its income tax return was false or fraudulent because it did not report other taxable income. Per investigation the correct income tax due is P350,000. The corporation was duly informed of this finding through preliminary assessment notice. Failing to protest on time against the preliminary assessment notice, a formal letter of demand and assessment notice was issued on May 31, 2013 calling for payment of the deficiency income tax on or before July 15, 2013. The amount due on July 15, 2013 is

a. P306,250 b. P218,750 c. P341,250 d. P612,500

56. DEF College, a private educational institution organized in 2009 had the following data in 2011:Tuition Fees Php 4.8MRental Income (net of 5% w/t) 4.940MTotal school expenses 9.45M

The income tax still due for 2011 isa. Php 165,000b. (Php 95,00)c. (Php 60,00)d. Php 200,000

57. The point on which a tax burden finally rests or settles down isa. Nature of taxationb. Theory of taxationc. Impact of taxationd. Incidence of taxation

58. One of the following distinctions between donation inter vivos and donation mortis causa is not correct?

a. The first takes effect during lifetime of the donor while the second takes effect upon the death of the grantor

b. The first requires a public document while the second does not require a public documentc. The first is subject to donor’s tax while the second is estate taxd. The first is valued at fair market value at the time the property is given while the second is

valued at fair market value at the time of death of the grantor

59. ABC Corporation, a vat-registered enterprise has the following sales for the month:Sale to private entities Php 2,000,000Sale of exempt goods 1,000,000Sale to the government 1,000,000Total sales for the month Php 4,000,000

The following input taxes were passed on by its vat suppliers:Input tax on taxable goods Php 80,000Input tax on sale of exempt goods 20,000Input tax on sale to the government 40,000

Input tax on depreciable capital goods not directly attributable to any specific activity (monthly amortization for 60 months) 160,000

The vat due for the month isa. P80,000b. P160,000c. P40,000d. 0

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60. Using the preceding number, the amount not available for input tax credit but may be recognized as cost or expense is

a. Php 140,000b. Php 70,000c. Php 60,000d. Php 80,000

61. Which of the following statements is not correct?a. An article subject to excise tax maybe exempt from vatb. An article subject to excise tax maybe subject to vatc. A taxpayer may have two businesses where one is subject to vat and the other is subject to

percentage taxd. Manufacturers and importers of goods are subject to excise tax

62. A, a citizen of the Philippines and a resident of Bacolod City, died testate on April 19, 2012. Among his gross estate are properties purchased from his father who died on April 4, 2009. What percentage of deduction will be used in computing the amount of vanishing deduction?

a. 20%b. 40%c. 60%d. 0

63. The donor and done are stranger to each othera. Gift to the brother of donor’s grandfatherb. Gift to the daughter of the granddaughter of the daughter of the donor’s granddaughterc. Gift to the grandson of the donor’s sisterd. Gift to the granddaughter of the sister of the donor’s mother

64. One of the following is not exempt from VATa. Lease of residential units with a monthly rental not exceeding P12,800b. Services subject to percentage taxc. Services rendered by individuals pursuant to employer-employee relationshipd. Export sales by persons who are vat-registered

65. Which one of the following is not allowed with presumptive input taxa. Those engaged in the manufacturing of refined sugarb. Those engaged in manufacturing packed noodle based instant mealsc. Those engaged in the processing of canned productsd. Those engaged in pasteurizing milk

66. If the surviving heirs are the spouse and parents of the decedent, the legitime of the spouse under testamentary succession is

a. 1/4 b. 1/3 c. 1/8 d. 1/2

67. Property subject to vanishing deduction had the following data. Fair market value when inherited 4 ½ years before and at the death of P220,000 and P320,000 respectively. Mortgage indebtedness paid thereon by the decedent is P20,000. Gross estate and deductions (except vanishing deduction and family home and standard deduction) of P2,000,000 and P50,000, respectively. The vanishing deduction is

a. P78,000b. P220,000c. P195,000d. P39,000

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68. A, a VAT registered person had the following data for April 2012 (vat not included):a. Export sale of feeds for animals

i. For human consumption P 1,500,000ii. For race horses and fighting cocks 500,000

b. Domestic sale of feeds for animalsi. For human consumption P 750,000

ii. For race horses and fighting cocks 250,000c. Input tax which cannot be directly attributed

to any of the above sales 100,000

The output tax for April isa. P30,000b. P90,000c. P60,000d. P120,000

69. Using the above data, the vat still due (excess input tax) isa. (P45,000)b. (P20,000)c. (P70,000)d. P5,000

70. Which of the following is subject to vat?a. Sale of passenger or cargo vessels and aircraft for domestic or international transport

operationsb. Sale of agricultural and marine food products in their original statec. Sales by agricultural cooperatives duly registered with the Cooperative Development

Authorityd. Sale of fuel, goods and supplies by persons engaged in international shipping or air transport

operations

71. Proceeds of life insurance where a third person other than the executor, or administrator or the decedent is the beneficiary is

a. Part of gross income whether revocable or irrevocableb. Not part of gross income whether revocable or irrevocablec. Part of gross estate whether revocable or irrevocabled. Not part of gross estate whether revocable or irrevocable

72. A’s income tax liability for 2011 was P75,000. She filed the return and paid the total amount due but not with the proper internal revenue district office on July 15, 2012. The amount payable (ignoring compromise penalty)

a. P97,500b. P112,500c. P116,250d. P135,000

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73. The following were taken from the income statement of A Corporation for the taxable year 2011:

Gross profit from sales P1,000,000Less: Business connected expenses P630,000

Provision for bad debts 90,000 720,000Net income before income tax P 280,000

Additional information:a. Accounts written off during the year and charge to allowance for bad debts P 60,000b. Recoveries on account receivable previously written off in 2010

i. Allowed by BIR as deductions 30,000ii. Disallowed by BIR as deduction 40,000

c. Refund of taxes paid in 2010:i. Allowed by BIR as deduction 50,000

ii. Disallowed by BIR as deduction 60,000

The taxable income isa. P310,000b. P410,000c. P390,000d. P340,000

74. DODC Airlines, an international air carrier showed the following gross receipts:

Point of Origin Destination Gross ReceiptsPhilippines China P 2,000,000Philippines Singapore 1,600,000Singapore Japan 3,000,000

Twenty-five percent of the shipment from the Philippines to Singapore were later shipped from Singapore to Japan. The percentage tax due is

d. P198,000e. P186,000f. P108,000g. P96,000

75. DODC Broadcasting, a non-vat holder of a franchise to operate a radio and television network reported the following gross receipts (net of any tax):Year 2010 P 9,000,000

2011 12,000,0002012 18,000,000

The business tax liability

2010 2011 2012

a. P 270,000 P 360,000 P2,160,000b. 1,080,000 1,440,000 2,160,000c. 270,000 1,440,000 2,160,000d. 1,080,000 360,000 2,160,000

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76. The gross estate of A includes P80,000 receivable which is duly notarized from the debtor B whose records show:a. Assets P 100,000b. Indebtedness to:

i. Government by way of taxes 40,000ii. A 80,000

iii. Other creditors 20,000

The deductible claims against insolvent person is

a. P80,000 b. P29,285 c. P48,000 d. P32,000

77. XYZ Corporation, a domestic corporation had the following data during the calendar year 2011

Gross income P 1,000,000 Business connected expenses 400,000 Dividends from:

a) Domestic corporation 100,000b) Foreign corporation, 90% of the gross income was derived from

the Philippines100,000

c) Foreign corporation, 60% of the gross income was derived from the Philippines

80,000

d) Foreign corporation, 30% of the gross income was derived from the Philippines

40,000

The taxable income is a. P920,000b. P820,000c. P748,000d. P750,000

78. C, vat-registered person, imported machines to be used in the Philippines as follows: Machines Purchase Price Purpose 1 P100,000 Personal Use 2 200,000 Business Use 3 300,000 For SaleThe importations were subjected to 50% excise tax based on purchase price. Machine 3 was sold for P1,000,000 (net of vat). How much is the vat paid on importation?

a. P108,000b. P90,000c. P54,000d. P36,000

79. Using the above date, the vat payable isa. P12,000 b. P30,000c. P106,000d. P84,000

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80. A, a VAT registered taxpayer made the following acquisition of capital goods from VAT registered suppliers (net of vat) during the quarter; Date Cost Estimated Life July 2 P1,500,000 8 years 10 500,000 2 years Aug. 5 400,000 3 years 20 500,000 4 years Sept. 10 500,000 4 years 15 600,000 6 yearsThe July 2 acquisition was retired in September. The input tax for September is

a. P176,450b. P178,950c. P7,950d. P4,950

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ANSWERS: (April 21, 2012)

1. D2. D3. C4. B5. C6. D7. A8. D9. D10. B11. C12. B13. C14. C15. B16. D17. B18. A19. B20. A

21. A22. C23. C24. B25. A26. A27. D28. D29. C30. D31. D32. D33. A34. D35. B36. B37. D38. B39. D40. D

41. C42. B43. B44. A45. C46. B47. C48. C49. B50. C51. B52. D53. C54. C55. A56. B57. D58. B59. A60. B

61. D62. D63. D64. D65. C66. A67. D68. A69. A70. D71. B72. C73. C74. D75. A76. D77. B78. A79. B80. B

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