1. ABC Land co, sold a house and lot for PHP 5 million. the cost of the...
Question:
1. ABC Land co, sold a house and lot for PHP 5 million. the cost of the land and the improvement is php 3 million while operating expenses/deductions amounted to PHP 1 million. the PHP 1 million is:
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
2. ABC Corp sold a fully depreciated asset at PHP 100,000. the amount is
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
3. Nicanor, an employee owns a house and lot. he bought the property five years ago at PHP 2 million. he sold the same property in 2021 at PHP 5 million. Zonal value and assessed value PHP 4 million and PHP 1 million, respectively, The PHP 5 million is:
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
4. Nicanor, an employee owns a house and lot. he bought the property five years ago at PHP 2 million. he sold the same property in 2021 at PHP 5 million. Zonal value and assessed value PHP 4 million and PHP 1 million, respectively,The PHP 3 Million (selling price less cost ) is:
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
5. ABC Corp. a domestic corporation engaged in selling motorcycles, bought a land five years ago at PHP 2 million. the company sold the same idle property in 2021 at PHP 5 million zonal value and assessed value are PHP 4 million and PHP 1 million, respectively. The PHP 5 million is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
6. ABC Corp. a domestic corporation engaged in selling motorcycles, bought a land five years ago at PHP 2 million. the company sold the same idle property in 2021 at PHP 5 million zonal value and assessed value are PHP 4 million and PHP 1 million, respectively. The PHP 3 million (selling price less cost) is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
7. ABC Corp. a domestic corporation engaged in selling motorcycles, bought a warehouse five years ago at PHP 2 million. the company sold the same property in 2021 at PHP 5 million zonal value and assessed value are PHP 4 million and PHP 1 million, respectively. The PHP 5 million is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
8. ABC Corp. a domestic corporation engaged in selling motorcycles, bought a warehouse five years ago at PHP 2 million. the company sold the same property in 2021 at PHP 5 million zonal value and assessed value are PHP 4 million and PHP 1 million, respectively. The PHP 3 million (selling price lest cost) is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
9. XYZ corp. invested in ABC Corp buying unlisted shares of stocks in the amount of 1 million. XYZ corp received dividends in the amount of PHP of 50,000. The dividend income is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. EXEMPT
10. ABC corp owns a chain of restaurant business. it receives royalties from franchising. collecting royalties is part of the primary business of ABC Corp as indicated in its articles of incorporation, royalty income is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
11. Nicanor was awarded as one of the outstanding faculty in the university for the year. he received PHP 20,000. the PHP 20,000 is
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
12. ABC corp has a reasonable private retirement plan. Nicanor a forty-year-old bachelor. retired from the company after serving 20 years. he received PHP 1 million. The PHP 1 million is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
13. ABC COrp has a reasonable private retirement plan. Nicanor a 70-year old senior citizen, retired form the company after serving 40 years. he received PHP 1 million as a reasonable retirement pay. it is the first time that he has retired . the PHP 1 million is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
14. ABC COrp has a reasonable private retirement plan. Nicanor a 70-year old senior citizen, retired from the company after serving 50 years. he received PHP 1 million. it is the first time that he has retired . the PHP 1 million is :
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
15. Due to COVID-19 ABC Corp incurred huge losses. hence it filed business closure. It paid employees PHP separation pay in accordance with the labor laws. the separation pay are
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
16. Nicanor is a poor but kind man. one day he was able to help inday. inday posted in the social media the good deed of NIcanor. People started donating money to NIcanor. the money he received is:
a. inclusions in / items of gross income
b. exclusions from gross income
c. capital gains subject to capital gains tax
d. passive income subject to final tax
e. none of the above
17. income earned from illegal sources is not taxable
true or false
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