PS: solutions or explanations are not needed. :) Thank you.

1. A corporation which may be classified as either a resident corporation or a non-resident corporation is

a. Domestic corporation

b. Foreign corporation

c. Government owned and controlled corporation

d. Non-profit hospital

2. Public educational institutions, like the University of the Philippines, is deemed by law:

a. Subject to the preferential corporate income tax for special corporations

b. Subject to the basic corporate income tax

c. Subject to both the preferential income tax and the basic corporate income tax

d. Exempt from the corporate income tax

3. A corporation which started operations in December 1, 2018 will be covered by MCIT in

a. 2018

b. 2021

c. 2022

d. 2025

4. Exempt corporations are nevertheless subject to 30% income tax on income from

a. related activities

b. unrelated activities

c. both related and unrelated activities

d. neither related and unrelated activities

5. Which of the following is classified as special corporations subject to preferential corporate income tax rate?

a. Social Security System

b. Proprietary educational institution

c. Philippine Charity Sweepstakes Office

d. Government Service Insurance System

6. A non-profit hospital which started operations in 1990 has the following results of operations in 2016:

	Hospital related	Non-hospital related	Total
Gross receipts and sales	300,000,000	200,000,000	500,000,000
Cost of services and sales	280,000,000	140,000,000	420,000,000
Gross income	20,000,000	60,000,000	80,000,000
Less: Expenses Incentives	40,000,000 12,000,000	20,000,000 6,000,000	60,000,000 18,000,000
Net Income	( 32,000,000)	34,000,000	2,000,000

Compute the income tax due.

a. 1,600,000

b. 600,000

c. 1,200,000

d. 10,200,000

7. Assuming the above hospital is a government hospital, compute the income tax due.

a. 0

b. 600,000

c. 1,600,000

d. 10,200,000