1. Identify a false statement:

a. If the fringe benefit is granted or furnished by the employer in property other than money but ownership is not transferred to the employee, the value of the fringe benefit is equal to the depreciation value of the property.

b. If the employer leases a residential property for the use of his employee and the said property is the usual place of residence of the employee, the monetary value of the fringe benefit shall be the amount of rental paid by the employer.

c. If the employer owns a residential property and the same is assigned for the use of his employee as his usual place of residence, the monetary value of the fringe benefit shall be fifty per cent (50%) of the value of the benefit.

d. If the employer purchases a residential property and transfers ownership thereof in the name of the employee, the monetary value of the fringe benefit shall be the entire value of the benefit.

2. If the employer owns a residential property and the same is assigned for the use of his employee as his usual place of residence, what is being computed if the fair value or zonal value of the property, whichever is higher of the two, is multiplied to 5%?

a. Annual value of the benefit

b. Monetary value of the benefit

c. Grossed up monetary value

d. Fringe benefit

3. Identify a false statement:

a. If the employer purchases a residential property on installment basis and allows his employee to use the same as his usual place of residence, the annual value of the benefit shall be five per cent (5%) of the acquisition cost, exclusive of interest. The monetary value of fringe benefit shall be fifty per cent (50%) of the value of the benefit.

b. Housing privilege of military officials of the Armed Forces of the Philippines (AFP) consisting of officials of the Philippine Army, Philippine Navy and Philippine Air Force shall not be treated as taxable fringe benefit.

c. A housing unit which is situated inside or adjacent to the premises of a business or factory shall not be considered as a taxable fringe benefit.

d. A housing unit is considered adjacent to the premises of the business if it is located within the maximum of 100 meters from the perimeter of the business premises.

4. Temporary housing for an employee who stays in a housing unit for ____________shall not be considered a taxable fringe benefit.

a. 2 months or more

b. 2 months or less

c. 3 months or more

d. 3 months or less

5. In general, expenses incurred by the employee but which are paid by his employer shall be treated as taxable fringe benefits, except-

a. When the expenditures are related to the business of the employer

b. When the expenditures are duly receipted for and in the name of the employer and the expenditures do not partake the nature of a personal expense attributable to the employee.

c. When the expenditures cannot be accounted for by the employee

d. There is no exception.

6. The following are considered as capital assets, except:

a. Personal car

b. Home equipment and appliances

c. Receivables

d. None of the above

7. How should ordinary gains be presented in the income tax return?

a. An item of gross income from operations

b. An item of incidental income or revenue

c. An item of non-operating income

d. Any of the above

8. How should ordinary loss be presented in the income tax return?

a. It is offset with any ordinary gain.

b. An item of gross income

c. An item of allowable deduction

d. None of the above

9. How should capital gain and loss on capital assets other than stocks and real property be presented in the income tax return?

a. Capital gain as other non-operating income, capital loss as deduction from gross income.

b. Capital loss as deduction from capital gain, net capital gain as non-operating income.

c. They should not be presented in the income statement, but they should be included in the notes to financial statements.

d. Answer not given

10. Identify a correct statement in relation to a capital loss on capita asset other than stocks and real property:

a. A net capital loss is any excess of capital gain over capital loss.

b. A net capital loss is allowed as a carry over by any taxpayer against any capital gain of the year following the net capital loss.

c. A net capital loss carry over is only allowed to individual taxpayers

d. None of the above.

Answer rating: 100% (QA)

1 Identify a false statement a If the fringe benefit is granted or furnished by the employer in prop... View the full answer