TG partnership reported for year net profit (before tax, if applicable) from trading amounting to

P8,000,000. The other income included interest income of P80,000, net of 20% final withholding tax,
and dividend income from domestic corporation of P200,000. Assuming that T and G share profits and
losses equally, how much is the applicable tax on the distributive share of T in the earnings of the
partnership?

Answer: 314,000

The depreciation of the property revaluation gain is deductible

False

Ordinary loss is deductible to the extent of ordinary gains

False

Masigasig University, a proprietary educational institution which usually distribute dividend to its
shareholders had the following data in 2021: Tuition fees P4,800,000; Rental income (net)
P4,940,000; Total school expenses P6,000,000; Assets P50,000,000. How much is the gross
rental income?
Answer: 5,200,000

Expenses intended for the business and the personal use of the taxpayer must be allocated between the
two . Only the portion pertaining to the business is deductible.

True

TG partnership reported for year net profit (before tax, if applicable) from trading amounting to
P8,000,000. The other income included interest income of P80,000, net of 20% final withholding tax,
and dividend income from domestic corporation of P200,000. Assuming that T and G share profits and
losses equally, how much is the share of T from the partnership?

Answer: 3,140,000

Which of the ff is subject to income tax

None of the above

Immaterial expenditures must always be capitalized

False

Masigasig University, a proprietary educational institution which usually distribute dividend to its
shareholders had the following data in 2021: Tuition fees P4,800,000; Rental income (net) P4,940,000;
Total school expenses P6,000,000; Assets P50,000,000. How much is the total tax due?

Answer: 40,000
Which of the following corporations is not subject to income tax?

Regional or area headquarters (in the Philippines) of a multi-national corporation

A taxpayer has the following historical results of operations: 2016 (P600,000); 2017 (P700,000); 2018
P400,000; 2019 (P200,000); 2020 P100,000. What is the total outstanding NOLCO at the end of P2020
which can be carried over in the future years?

Answer: 200,000

Masigasig University, a proprietary educational institution which usually distribute dividend to its
shareholders had the following data in 2021: Tuition fees P4,800,000; Rental income (net) P4,940,000;
Total school expenses P6,000,000; Assets P50,000,000. How much is the taxable income?

4,000,000

The failure to deduct creditable withholding tax on income payments will render the expense non-
deductible.

True

Which of the following statements is wrong?

A general partnership in trade is not taxable as a corporation

Jumbo air, an international carrier (RFC) engaged in local and international operations has the following
data for the current year. Gross income and expenses from Phil. operations, P10,000,000 and P4,000,000
respectively. The income tax due of the corporation is

250,000

Capital loss is deductible to the extent of capital gains.

True

A non-resident alien engaged in trade or business incurred business expenses of P100,000 and personal
expense of P20,000. How much is deductible from his gross income?

100,000

Philippine air, a domestic corporation engaged in local and international operations has the
following data for the current year. Gross income and expenses from international operations,
P10,000,000 and P4,000,000 respectively. The income tax due of the corporation is
1,500,000
Which of the following is a deductible expense?

General and administrative expense

A partnership is formed by persons for sole purpose of exercising their common profession, no part of
the income of which is derived from engaging in any trade or business.

General professional partnership

TGT & Co. is a general partnership in trade and in its fifth year of operations (2021). During the current
taxable year, it had a gross profit from sales and business expenses of P200,000,000 and P100,000,000
respectively. T,G and T share equally in profits and losses of the partnership. The income tax due of the
partnership in 2021 is:

25,000,000

On September 30, 2021, a taxpayer borrowed P1,000,000 at 12% annual interest to finance his
acquisition of a delivery equipment. Compute the deductible interest expense in 2021.

30,000

Cash basis and accrual basis taxpayers differs in the treatment of

Current period accrued expense

The amount of net capital loss carry-over must not exceed the net income in the year it was sustained

True

For purposes of taxation, which of the following statements regarding partnership is correct? I. Classified
into two major categories, partnership in trade and general professional partnership; II. Partnership in
trade is taxable as a corporate taxpayer; III. General professional partnership is exempt from income tax.

I,II,III

A general professional partnership is exempt from income tax, but is required to file an income tax
return

Because the net income of the partnership will be traced into the income tax return of the partners

Statement 1 : All partnerships are taxed in the same manner as corporation; Statement 2: The income of
a general commercial partnership is also subject to MCIT or Regular Corporate Income tax (RCIT)
whichever is higher.

Statement 1 is false but statement 2 is true

The loss on sale of bonds by banks in capital loss.

False
A taxable partnership may be subject to the following taxes under CREATE Act: I. Minimum corporate
income tax; II. Gross income tax; III. Improperly accumulated earnings tax.

I, and II only

Prepaid expenses are deductible upon payment consistent with the rule that advanced incomes are
taxable upon receipt.

False

Corporations are not allowed to carry-over net capital loss for a period

True

A taxpayer paid P45,000 property insurance having a 12-month coverage starting March 1. 2020
Compute the deductible insurance expense in 2021.

Answer; 7,500

The loss on sale of stocks by a trust company is a capital loss.

False

Company had the following results of operations: Gross income 2019 P1,200,000; 2020 P2,500,000;
Itemized deductions 2019 P1,400,000; 2020 P1,000,000; Deduction Incentives 2019 AP200,000; 220
P300,000. What is the net income / (net loss) in 2019?

400,000

Ordinary loss and capital loss are items of deduction from gross income

False

On July 1, 2018, a taxpayer purchased a furniture and fixtures for P500,000 which was estimated to be
useful until July 1, 2023, with expected P100,000 retirement value. Compute the 2019 depreciation
expense using straight line method.

80,000

TGT & Co. is a general partnership in trade and in its fifth year of operations (2021). During the current
taxable year, it had a gross profit from sales and business expenses of P200,000,000 and P110,000,000
respectively. T,G and T share equally in profits and losses of the partnership. The final tax due of partner
G as a consequence of being a partner in the partnership is:

3,000,000
Masigasig University, a proprietary educational institution which usually distribute dividend to its
shareholders had the following data in 2021: Tuition fees P4,800,000; Rental income (net) P4,940,000;
Total school expenses P6,000,000; Assets P50,000,000. How much is the income tax payable?

220,000

Which is a deductible expense against gross income?

Local taxes

A net ordinary loss is deductible from gross income while a net capital loss is non-deductible.

True

In a general professional partnership (GPP):

The GPP shall report total partnership income

Which is not a capital expenditure

Accrued expenses

TGT & Co. is a general partnership in trade and in its fifth year of operations (2021). During the current
taxable year, it had a gross profit from sales and business expenses of P200,000,000 and P100,000,000
respectively. T,G and T share equally in profits and losses of the partnership. The income tax due of
partner T as a consequence of being a partner in the partnership is:

Spartan Corporation had office supplies valued at P80,000 on January 1, 2021. At the end of the first
calendar quarter it had, P40,000 worth of office supplies. Total supplies purchased were P250,000 during
the period. Compute the supplies expense to be deducted during the first quarter.

290,000

Which is a deductible expense

Representation

TG partnership reported for year net profit (before tax, if applicable) from trading amounting to
P8,000,000. The other income included interest income of P80,000, net of 20% final withholding tax,
and dividend income from domestic corporation of P200,000. Assuming that T and G share profits and
losses equally, how much is the total distributable income?

6,280,000