CPAR
I I
CPA Review Sch,c**
Saturdag September 14,2013 10:30AM to 12:30Noon l0:30AM
rrffincdons,Choose the BEST answer fur each of the ferliowing items. Mark only one answer for each item on the Speciat Ansv*er $hed pnovided. Strictly rssasure dlowd.
C
1.
Which one ofthe fotlowing is nnt a. requtsite to rnake an initnment negoti.able? a. If addressed to a drawee, he rnust tre named or otherwise inclicated therein with reasonable certaintv b., JI grgst sO$-af*a*pnEqudt-tjpgf,I SES!LI$g o'r qr.dgf rfi Sr.{r}..A S!-jI} s.6rf +}t! tp.E,.gf-Ky c. Where the instrument is payable i;o tx*rcr, the payoe rrrr,ir. !r ,iemed or otherwise indicated tirerein vrrrth reasonable certainty d. Where the instrument is parvable to order, the palee must be nam.eC or otherwise indicated therein with reasonable certainty
B
2.
M, makes
to the orCer ot'i'. P made a special indorsement to A. A made a qualified indorsement to B, a minor. Subsequent in<.iryrsrments are ftom B to C, C to D and D to E,. all by speoial indorsement, then E made a qualified indorsennent to F. Which of the following a negotiable promissory note payable
staternents is correct?
The inriorsement made by B transfers titls to C, herce i3 is llabls as an indorser Transfer title but NOT liable. i:). F can hoid E liable ifM dishonors the urstnrrnrrr: E violates warranty In case M dishonors the instrument, F can hold alt itdroi'sers liabie except B & Q d. The qualified indorsers A ancl E and miuor B are not liable to F E is liable
c
D
3.
His warranty extends in favor only of the irrme 1i;fs transferee and to no other holder a. Qualified r,. Fe'r'son negoriating b-'r delivery b. General nt. Person uegotiating by biank indorsement
4.
which of the fc,llov,ing sta.tenents r:e'.r"t'lidrg tr freffir.rri, ohares il corect? a. Treaslly shares are not part of r:su ,d ca.p,ital s:tcc"l: b. Treasury shares may not be d.sposed of at a price lowor thur thv par or jssued price even if it is
indorser indorser
c.
reasonabtre and approved by the toarcl of
,J. Treasury A
-u
shares, onco disposer! cf, entitle the purchaser or transfore,e he right to dividends
5. Which of the frillowing is not a negotrabie instrurnent? a. '?ay to B or order P1,000 in 4 equal monthly installinellts."
b. cd.
Kailangan nakaspecify din kung Sgd. A kailan mo siya sisimulang '?ay fti B or order Pl,000 and debit rny a*eo,xrt thercafter" bayaran... To: X Sge{. ,1" '?ay to the older of B within 6 mon'ths from dete tire sum,rf P1,000 at 12% per annum"
To: X
To:
X
Sgd..,\ "Fay to B or 1iearerP1,000 ons ye,ar afie r .{ate. df rtt paiC v,rhe*. due, I agree to pay collection and attorney's fees"
To: X D
6.
'q,gd.
r\
Holder H altered the amount of a n*gotiat leinote froru Fld),,{i00 to P1 1C,000 then negotiated the note to P. As a result, a. If P is a holder in due course. tie can 1eq,rdr,, fl.:"r ntl,,&.er;c,Ila) PJ l,J JOa b. If P is not a holder in ciue sourse, he qaR *"e,{uir*g tlr.* maker io pa}'only the original sgm of P10,000 o. P cannot require the maker to pa1. trc,oaui,e *t siferalrrrt ,vhetlrer or not he is a holder in due l
d.
coursD l-f.P is a Lotrder for value, he can cir'[Iqm F I tii"ul)e
ficm ]i.
D
i 7. M issued to p, accommodat€d party, a nego{iabrle pr:omissory note for P10,000. P endorsed it to A' A to Accommodated Party - sya yung nakisuyo. On the eyes of B and B to C. Which one of the fotlowing is incorrecti the partues. Subsequent to accommodation, a. M can collect from P, if M will Pay C syang alam sa accommodation na naganap. b. P maydirectlypay C c. Between M and P, M is not liabte ufuilr P is principally liable d. P can collect from lvI, if P \^rill pay C
D
pwedeng wala
{. A is maker and H is payee of a negotiabl* promissory note payable to order. There is no valuable
consideration for the note-. B delivers the ins*:rment to C, without indorsement, under circumstances that otherwise would have made C a holder in due course such es, that C did uot know of the absence of consideration. May C recover from A? a. Yes, because A's personal defense oalnot be used agai.nst C b. Yes, bos.atis€ the promissory rme is rlsgotiable c- No, because A hai a real deferse iryhich can be used even against a holder in due course d. No, because C acquires only B's nghts and A can set up agarnst B the defense of absence of consideration
a shak B is tk rrey.ee snd X is tlrri drauv-e bank. Y fraudulently gets hold of the check and forges the signature of the pay*e, ts" Y theo deposits it io C bank. C bank indorses the check to X, drawee bank and collects from-said X dra.wee hank through the clearing house. then Y, forger withdraws from C bank the proceeds of tlre clree'.k and disappears. Vrhich of the following is not correct? L. The drawer A has the right to reool-er'from calleoCing bank C b. The drawer's acoouot cannot be chargsd try the drarvee bank c. The payee, B can recover &om drawer A d. The drawee bank can recover from fhe cnliecting'bank
A is the drarvsr
A
9.
B
10. The following statements pertain to a voting tn$tee' except
&.
b.
The representative acquires legal title to the shares It is good only for the meeting for which it was intended ;.: *rufly irr.rocable *O tU* representative may vote even in the presence of the stocllholder The agreement giving the reprresentativq thlpower to vote must be duly notarized and a copy ther.eoimust be iubmiued to the SEC to be effective and enforceable
;. ii d.
B
I
"of
t
l. This vacancy in the board of directors still constitute
may be finled by the board of directors
if
the remaining directors
a quonrm
Removal of a director Death of a director Iacrecse in thenturbersf dirustffis d. Expiration of the term of a director a.
b.
C
12.
M issues a promissory note payable to P or bearer. B"hjclr of the fotlowing is not correct? a. If indorsedUy f to A nirO A also indorses it to B, B rnay negotiate the note to C by delivery b. If indorscd by P to A and A also indors^es ii tri B, P is liable to A altd B c. If indorsed Uy e to ^A, and A also inelorx*s it to B, and B negotiates the note to C by delivery- A is liahle to B and C d. If p negotiates the note to A by deliverv and. A indorses it to B, B may negotiate tho note to C by delivery
C
ofthe following is,not correct? Where the instrument is negotiated ba,c,l( to a prior party, all intervening indorsements are not nccessary to the h.older's tifle b. lVlrere the instrument is originally payahle to order, the holder maY not strike out the PaYee's
13. Which
&.
1
c. d.
indorsement The indorser whose indorsement i: struck out and atrl the indorsers are thereby relieved from liability on the instrument The holdermay at anytime strike out an i*dorsernent which is not necessary to his title
C-
14.
The subscriber of shares even if not fully prraid but rvho is not delinquent is entitled to the folfowing rights, except Stock certificate is issued only to a. Rights to receive dividends fully paid shares. b. R.ight to vote in stockholders meetings c. Right to demand his stock certificate d. Rights to inspect corporate books and records.
B - {5' Slaiemenll - A majority of the number of directors or trustees as fixed in the artioles of incorporation shall constitute a quonrm for the transaction of corporate business, anel every decision of at least a majority of,the directors or trustees present at a meeling at which threre is a quorum shall be valid as a corporate act, except for the election of the offrcers rnhich shall requir"e the vote of a mejority of all the mernbers of the board
Stsfqffiqt U
-
No pe,rsou fu a six esfivftted of fiml jgdgruent of an rltfemse pnrnisimble by irrprisorrrmt five period exceeding XXX five years or a violation of the corpormion oode committed withinsix XX lears prior to the date of his electioo or appoinunen! shall quaiiff as a director, fustee or officer of any corporation. a. True, true b. True, faJse c. False. fnre -1. False" t'alse
D 16' M rnakes and
ctrelisers a prornissory note
payatle to the order of P. P indorses the note to A. Later,
S
steals the nste and negotiates the same to t{ by f'orging A's signature. Thereafter, B negotiates the note to C, C to D and D to E, a holder in due osurse^ lttricle of the tbllo*ing statements is correct? &. E can hold M and P liable because their signat"r* are genuine
b.
c.
d
E cannot hold B, C and D linble beca'*se they have iro pa.rticipatr.on in the commission of the
forgery E can enforce the instrurnent nnly ag*inst S, the fc,rger E can enfilrce the instrument against S, B" C and D but nc,t agaiast ld, P and
A
B 17.P, O and A are partners in an impoit and exp:rt irusiness. Customers desiring to place an order for imported artictres are always required to rnake a d,cp':sit of l5_9ro of the tota! cost .rf the order. B, a regular customer, deposited P5,000 to P for his ord*r, P, instead of tumin;* over the said amount to the partnership, misappropriated it. As a result, (rrio lti irot cofiect a fI may institute a ciaim aga.inst the parfnerstiip and a{{ th* partners b. 'Ihe personal liability of the pafiner,:s is jr:rint c. The partnership is bound to make gorx! the loss wherre one parhler acting rvithi* the scope of his apparent authority receives nlonev or proiierg cf a thrd psrson anct misapplies it d. Ail the parhrers are lrable sc,lirftrlil;r r,,ltl thc pxtlr,rsliip for:"er;thin_ chargeable to the pafine$irili Damages 'to kaya solidary. A
18.
A contract lvlrere the creditor acqui:r;s tfte right rrt re*eire the firdts of rn rrninovalrle of his debtor, with the obligntion to apply them to the payment iif irrt;rest it ow.,ng" arrC tlroreafler to the principal of his credit is
a. Anfichrssis
C
19.
b.
U$lftx:t
.c.
R.adestrte;.norfgr4e d
()errr.lmorlatinn
A ptedged his nng to B for P20,000. A faiie,J 1,r pay his obiigaE,lrr. i"i lohl rt at a public auction for Pl8,000. Can B recover the deficiency? a" Yes, even without stipulation r. li'o, even ifthere is stip,;Lr*i,tn b. Yes, if there is stipulation d i{o,liyllesl there is stjpr.llafion
A 20. C mortgaged his car to B for
P?CI0,000. C failed.
P180,000. Can B recover the deflciency"l a. Yes, even without b. Yes, onlv if there is
stipulation
stipulation
to
p,r_v
o, No, ev*ia
hil ctili,6ation. B sold if there is stipri;gl6,n
tL N$, u:rless ther.e is stipulati,;n
D 21. Any director of a col'poration maybe removedrf'rr:nn oftjse a. Majority of the mernbers of the board b- Majority af the stockholders Fr.esent o. 2/3 ofthE stockholders present - d. 213 of trcourstanding capiml sfock
b.v a
vote
of
rt at a public auction for
C
22.PLand P2 are co-owners ofa piece of lend an*i ttie-v iuulr,::d ,rnd arrthorised A to sell their land. tUho will be liable to A fortlre payment ofhis commission?
t.
b. c. d.
Both Pl and P2 jointly Both P1 and P2 solidarily only if stiplated BothPl andP2 solidarily even withorrt stipulation 50% fromP1 and S0YofromP2
A
23. F appoints A1 ar:d A2 as his agents. A{ anrl A3 agreed to be bormd solidarily. Suppose A1 performed the agency negligently which caused damaged to F, **n P hold A2 liable for damages? Slalennen!-l- Yes, if A1 acted withitr the sirrpe of his authority Steteseul2 - No, if Al acted beyond. the s,;ope *f h"is authority a. Both statements are true b. Bo{ft st*$exrreuts afe false c. Only Statement 1 is true d. Only Statement 2 is true
B
24.
A sold his piano to B for Php200,000 payable ilr inste^tlmrent. A chattel
mortgage was constituted on the pianci. il defaulted in two installment payments. A clef,rranded payment of the unpaid obligation amounting to Php 120,000 and a writ of attachment was issued and the piano was sold for Php 100,000. Can A still recover the deficieney? Statement I - No, the foreoloswe ofthe piamo extinprrishes B's obligation S{atgent 3 - Yes, if stipulated that in casc of foreclosure the buyer will pay any deficiency Both statements are true SALE by installment => RECTO law. b. Eodr statements are false LOAN with installment => Chattel c. Only Statement I is true d. Only Statement 2 is tnre
a.
B
25. Which of tlie follorr*,ng instrufirents:s negotiahle? a. '?ay to the order of A or B the s,rrm rif,P1*0,000." Sgd. C and D b. "I promise to pay to the order oI A cr B ths surn of P100,000". Sgd. C and D '?ay to B or order the sum of Plii0,Ctt0 30 days after sight". Sgd. A d. "We promise to pay A and B the suni cf'P100,000". Sgd. C and D
c.
A
26. Deleof,rs personap is an element of a prfirership wh,ic.h. me&ns a. Right to choose his partners b. Con{idence and trust in his partners c" Obligation to remain loyal to his partrers d. ilistribution of profits among the partrrers
C
27. When real property is contributed to the partrlersh,p a. A real oon.tract is perfected b. A written in*strument is required c. A public instrument complete with inventory is required d. A partner can make important alteration if beriefir:ial to tlre partnership
B 28. In a parlnership, the liability of the partners shall be joirirt and solidary contractual L Oblig,atiors in favor of partnership suppliers by virtue of sales contract U. Ohligatioras in fb'vor of a partnership client for retum of deposits misappropriated by one of the partners damages m. Obligations in favor of a pedesfiian hit by tho rl*hveiy van driven by one of the porhrers in the course of partnership business damages
III lII c. I arul II a.
i
and
b. I{ and d. I,
Ii
and
Itr
B
29. Acorporatiotr is cirtferent ilicrn a pm.rtnership in -that ttre fonner is a. An artificial berng Partnership is created by agreement/ b. Created by operation of law consensual NOT by operation of law. c. A business organization d. Organized for profit
D
30. A bought from B a car at a price of P2M, FOB factory. A paid PIM as down payment and the balance within one month from delivery. The car was picked up by A upon payment of the down payment on April 24,201Q. On May 10, 2010, B ieamed of A's insolvency. In this case, B shall be entitled to a. Remedy of possessory lien Possesory lien - right to retain possession of b. Remedy *f resale goods until FULL payment. c. Remedy of stoppage intransit Insolvent na nga sya. Hindi na yun mababayaran ng d. Remedy of rescission
buo. B
31. The principle of "caveat emptor" or let the buyer beware will not apply in a- Sheriffs sale b. Sales of animals in pairs c. Auction sales d. Sales of livestock as condemned
A
32.
A, B and C are partners" A died togsther with other Fssengers of Flight 123 of Air Port. In spite of A's a matter not deatlU which is kno*.n to B, B still transacted business with the firm's previous creditor, Y, on
read related to winding up. y thought all the time that the f,rm had not yet been dissolved because he did not is partnership the notice of dissolution publiihed in the newspapers. In this case, the a. No longer liable toy since the transactionitrr dissolution is not oonnected with winding-up b. Still liable to Y since he is a previous creditor c. Still liable to Y since the transaction is within the 3-year liquidation period d. No longer liable to Y since B can no longer bind the firm due to the death of A
B
C
- 33. A and B entered into a contact
of partnership for the purpose of operating a car repair shop. A promtryd !o contribute P500,000 on April 2q,ZOW. B as industrial partner, wilfmanage the business. On April 24,2A14, A did not effect confiibution. Thus a. A is in delay ifB makes a demand b. A is a debtor in default c. B shali be entitledto damages d. The partrership is dissolved due to lack of crbject
34. Ais the listed owner of 10,000 with par value of Pl00/share common shares in ABC Corporation AB9 sued A for the pavment of A's indebtedness of FlM. A contends that such debt must be compensated by his shares of stocks with the plaintiff corporation. The contention of A is a. Valid due to legal compensation b. Valid by virtue ofjudiciatr compensation c. Unte,lrable since he is not a creditor of the corporation d. Automatically exinguished if the fair market value of the shares is
D
PIM
35. A gave B p50,0C0 for the purchase of a TV set in behalf of the former, with the obligation of returning the amognt if the TV set was not bouglit u'ithin a week. A did not buy the item but did not return the amount' An estafa case was filed by A against B. B pleaded A to drop the case. In returr! B issued a promissory note in favor of A for the amount involved. Is the promissory note valid? a No, the consideration of the note is the stiffling of the crime of estafa b. No, the consideration of the nofe is unlawful c. Yes, if the note is negotiable because ofmutual consent d. Yes, the note is in considerition of a pre-existing debt
A
36.
A and B efl,tsred into a universal prrtnership of ali present property. No stipulation lYas rnade regarding futue properl.y After the perftction of the contract, A inherited a parcel of land and B acquired a car as r"1n*.rutloo io. a.
b. o.
d.
A
services rindered. The properties aoquired after the perfection of the confact belong to
Land AB A
Car PartnershiP B Partnership
Parrrership
Partnership
37. Which of the following statements is thlse?
a;
b. c. d.
Treasury strarei revert to the unissued shares of the corporation and being in the treasury they don't have the status of outstanding shares of such Shares issued without p* uui-u" shall be deemed futly paid and non assessable and the holder shares shall not be liable to the corporation or its creditors in respect thereto Redeemable shares may be redeemed regardless of the existence of unrestrioted retained earnings provided such redempion would not cause insolvency or inability of the corporation to meet its debts as they mature part of When pa, oal.r. shares are issued above par, the premium or excess is notto be considered as the legal capital
C
3g. In case the members of the board of directors of a corporation still constitute a quorum, and there are vacancies, who will fill up such vacancies? Removal Besisnation Exniration of term Incrpase in the number otDirectors Board Stockholders Stostlmlders Board Ot Stockholders Stockholders Board Board b. Stockholders Stockholders Board Stockholders c. Stockholders Stockholders Stockholders Board d.
C
___ limited,alimitedpartnership\irithAasaggnSrylpartner,Basalimited 39.A,BandCorganizedABCandCo, partner, and C as an industriat partner, contributing'P200,000, P200,000 and industry respectively. Th€ pu.tn"rrtip failed and after dispoiing all ix assets to puy partnership debts, there still remains a note payable in the sum ofP30,000. Against whom canthe creditor demand payment? C Nakalagay yung name nung limited partner
AE
L. b_
c.
d.
P30,000 P15,000 P10,000 P15,000
P0 P0
P10,000 P15,000
PO
sa company name e. So sa mata ng 3rd
P15,000 P10,000 party, general partner sya unless may PO
kapangalan syang general partner.
A
40. Which of the following is not correct? a. A partnership begins from the moment of the execution of the articles of partnership, unlEss it is otherwise stipulated b. Persons who are prohibited from gving each other any donation or advantage cannot enter into universal partnership c. A particular partneiship has for its object detemrinate &ings, their use or fruits, or a specific undertaking or the exercise of,a profession or vocation d. Articles of-universal partn"r*ttip entered into without specifications of its nature, only constitutes a universal partnership of profits
D
41. A insured his life for PIOM. In case A dies, the proceeds of the life insurance shall be: &. Excluded frona gross,estate if the beneficiary is the estate, executor or administrator whether revocable or irre.vocable b. Part of gross income if the beneficiary is a third person and the designation is revocable c. part of ihe gross estate if the beneficiary is a third person and the designatio:r is irrevooable d. Excluded fro* grosr income whether Lreneficiary is revocable or irrevocable
D
A
A
lZ.
ytz,a
domestic corporation was determined to be improperly accumulating rts earnings for tho taxable year 2009 based on its records as follows: P 1,000,000 + a. Net income from business before tax i 50.000 b. Dividends actually or constructively paid :70,CI00 c. Income tax paid for the year gi;,gli0 + (net of FT na 'to) d. Income subjoced to 209'i, final +a:l 5U,000 + e. Income exempt from tax 10,000 + = 700 x 10% = 70 f. Income excluded from gross incorne 100,000 g. Net operating loss (2008) The ta:r on improperly accumulated earnings is a. P81,500 b. P71,500 c. P80,000 d. P70,000
but subject {3. Real property with a cost of p300,000 and a fhir market value atlhetime of death of P1,000,000, to a mortgage of P200,000 a. Shall be in the taxable net estate at F800,000 b. shall be in the gross estate *ttfoe decedent equity of F800,000 c. Shall be in the gro$s estate at P300,000 d. shall be in the gross estate at the owner's equitv of PI0c,000 44.
A acquired his residential land iri 2000 at a cost of P1,000,00s. He sold the properry on January 1, 2009 with he purchased his a fair market value of pS,000,000 for a consideration of P4.000,000. Within 18 mon'ths' ga:n" t*x? new principal residene* at a. c*g"t cf P7,000,000. How unti..":t i:: the' ca.;'itri a. P300,000 yung resident land sold is NOT his principal residence.. b. P240,000 5M x 6% =300 c. P75,000 d. P0
muoh is A 45. Using the same data, exoept that A acquired his new principal residence at a cost of P3,00,000, how the capital gains tax? see a. P300,000 #44 b. P240,000 c. P75,000 d. P0
C
46. One of the following is not correct a. The estate must be valued at the time of ctreatti of the decedent b. Real estate situated in foreign countries will be included in the gross estate of a resident alien deeedent pero may tax credit sya.. c. The Commissioner shall have the authority to grant, in meritorious cases, a reasonable oxtension not exceeding 6 mnnths ior filing the estate tax reiurn 1 month lang extension ng FILING! d. Vanishing deduction is subject to limitatiori
A
47. Mabuhay Corporation organized in 2002 has the follov*ing data: a&gs P1,700,0$0 1,050,00S Cost of 615,00C Operating The income tax payable in 2008 is a. P13,000 b. P5,250 c. P10,500 d.P12,250
Sales sales expenses
t
?009 r.369.t}0r,, 1,425,0C0
480,000
C
48. Using the above data, the income ta"x payable by Mabuhav Corp
Pl18,500
b. Pl10,750
c.P117,750 d. P108,000
B
49. A filed his income tax retum for the calendar year 2007 on }v{arch 20,20A:8. When is the last day for the BIR to collect assuming A did not pay the tax dur" ugrn frling? a. March 20,2011
. A
b. April 15,20ll c. April 15,2013 d. March 20,2013
50. Using the above data, assuming A frled his inconne tax return on April 20, 2008 and the retum is not fraudulent, when is the last day for the BIR to rnake an assessment? a.
April20,20ll
b. April l5,20ll c. April20,2Al3 d. April 15,2Al3
C
51. Using the above data, if the BIR issued a deficieircy income tax assessment on March 10, 2010, when is the last day for the BIR to collect?
a March 10,2013 b. Apil 15,2A13 c. tvfarch 10,2015 d. April 15,2015
C
52. One of the following is not within the powers of the Cc,nrnissioner of hrternal Revenue a. Compromise the payment of intcrnal revenue ta:r on the ground of taxpayer's financial incapacity b. Compromise the pa3ment of intr":rnatr revefiue tax on the ground that there is reasonable doubt as to the validity of the assessnnent c. Compromise criminal violation if already filsd in oourt and those involving fraud d. Abate or cancel a tax liability on *he ground that the cost of collection is greater than that of the tur to be collected
-
B
53. The export sale of a vat registered enterprise is a. Exempt from the vat b. Subject to the 0o/o vat c. Subject to the l2a/o vat d. Subject to percentage tax
C
54. A filed his ITR for 2012 ot April 15, 2013 and wiltr pay his tax liability in installment. The return shows an income tax clue of P100,000 and income tax $rithh;ld of P60,000. If A pays the 2"d installment only on October 75,2013,the amountto be paid (exciudirry compromise penalty) is a. P26,000 50 50 b. P35,000 d. P37,500
C
-60 = -10 => 0
55. Using the above data, the amount due on
a P20,000 b. P40,000 c. P0 d. Refund of P10,000
April
-10 =40 + 40x25% + 50x20% x 6/12 = 55
15. 2013 is
C
56. Which of the following statements is not correct?
a.
When a compulsory heir is given by will iess than his legitime, the provisions of the witl should be modified in such a way that he will receive his legitime The CIR may examine the bank deposit of a decedent for the purpose of tletermining his gross estatc even if the estate did not request f,or a compromise on the ground of financial io*prcity The P500,000 standard deduction for medical extrrnses for estate tax purposes is a legal mechanism to further exempt the less privileged estate and heirs from tax burden The sharing of heirs in testamentary succession must satisff the rules on legitime
b' c. d. A
D
57.
stookbroker remified P11,250 to the tsIR representing collecdon of tax withhetd from clients. The peso volume of his stock transactions from which the tax was withheld is a.P93,750 b, P112,500 c.P225,000 d. P2250,000
C
58.
A vat taxpayer
'
has the following data for a partioular quar&er cluring the current year: Sale of shares of stock: Held as inventory P 1,000,000
Held as investment Cost of the shares sold: Held as inventory Held as investrnent (thru local stock exchange) The stock transaction tax is a. P0 b. P1,500 c. P2,500 d. P7,500
B
500,000 300,000 600,000
59. A race track bettor won on the fotlowing bets: On double, a bet of P200 and dividend of p200 per p20 ricket On winner take all, a bet of P500 and a dividen'J of Ftr 000 per P50 ticket On forecast, abet ofP1,000 and dividend of pl00 perF20 ticket The total percentage tax due from the winnings is
a.P682 b. Pl,Ig2 c. P1,280 d. Pl,530
B
60. In a hansfer in conternplation of death revocable trensfer ancl. transfer under a general power of appointment, there are rules to observe to detenaine rvhat amourit to inch,rcie in lIrc grois estate, which is not a rule to observe? a. If the transfer was in the nature of a bora firie saie for an adequate and full consideration in money or money's worth, no value shall bo rncluded in the gro,ss estate b. If there was no consideration received on fhe f;ansfe,r as ln rlonatic,n inter-vivos, the value to include in the gross estate shall be the tair markel value of the properfy at the time of transfer Ifthe consideration received on the transfer vras less than adequa-re and full, tbe value to include in the gross estate shall be the excess of tiie fair rcarlce;t v,alue of the property at the time of decedent's death over the consideration re,;eive(I d. If there was no consideration received or the lransrbr ns iu clonatiori rnortis causa, the value to include in the gross estate shall be the thir market ralue of,the prr,rperty at the time ofthe decedent's
c'
death
,
1
D
61. For proceeds of life insuranoe not to constitute part nf tii* gross esiat;: a. Must have been taken out by the Cee*dent upcr: his li{e b. Must have designated the estate of the rl*cecisnt as irrevocabl,* beneficiary c. Must have designated a third persoil as. the decedent's elie()utcr cr administrator as the irrevocable benefioiary d. Must have designated a thinl persorl other tlun the e;tato, the des:dent's executor or administrator as irrevocable treuefrci ar17
B
62. Which of the following statements is false? a. Donations can be made to conceiveci and unborn children
b. The first Pl00,000 donation is exempted &om donor,s tax c. Juridical persons can also make donations d.
Husband and wife can make moderate donations to each other on account of family celebration
A
63. Which of the following is subject to VAT? a, knportatio-n of personal or household effects belonging to the residents of the philippines returning from abroad and non-resident citizen coning to resettle in the philippines where such goods were subjected to customs duties b. Importationof passenger or cargo vess*l and aircrafts, including engine, equipment and spare parts thereof for domestic or international transport operation c. Importation of fuel, goods and supplies by persons engaged in international shipping or air transport operations d. Sale of leal property not primarily held for sale to customers or held for lease in the ordinary course ofbusiness
A
64. Which of the following is exempt fiom VAT? a. Sa.le of passenger or cargo vessels and aircraft, including engine, equipment and spare parts thereof for domestic or intemationa.l transport operations b. Sale of professional instruments and impleurenti wearing apparel, domestic animals and personal household effect c. Sale of fuel, goods and supplies by perscns engaged in international shipping or air transport operations d. Importation by persons who are not rrat registered
A
65' C, vat-registered person, imported machines to be usecl in the Phflippines as follows: purpose Purchase personal use
Machines I 2
Fric* Ptr00,0,{!0 200,cl00
Business use 300,000 For sale The importations-were subjected to 5Q% excise tax hased on purchase price. Machine P1,000,000 (net of vat). How much is the vat paid on impcrtation? J
a.
3 was sold for
Pl08,000
b. P90,000 c. P54,000 d. P36,000
B
56. Using the above data, the vat payable is a. P12,000
b. P30,000 c. Pl06,000 d. P94,000 ltems 67 to 78
],Nagpala a good looking Filipino 19 years old, single, high school graduate from a remote province, brought his i0 year old mother went to lv{anila in 2Al2 to try tt *ir iuck here.- He applied, and was 'hirud, as a janr:tor in vlapagpala Corporation. As soou as he was hird he eilrolled in the Collegi of Accountancy. Foi the year zol1, rc earned and incurredthe following: Salaries, net of SSS, phitHealth contributions, and Union dues of p8,000, and withhotding ta>r
ofPl0,000
p162,000
13e month pay and Christmas bonus 25,000 Tuition fee, board and lodging, and othe.r living expenses 60,000 Money sent to his grandparents in the prov"ince 40,000
D
67 . P.
Nagpala's inoome tax payable (refundable) firr the caxirble year 20 I 2 is: a. P4,900 b. P6,900 c. P10,500 d. P8,900
In 2013, p. Nagpala's good looks and his being anrbitious and hardworking caught the attention of ldakiri, the company president's daughter. On February tr4 of that year, lv{akiri treated P. Nagpala to snacks. She put a tablet inhis drinks whichlnade P. Nagpala very rnuch attracted to her. They went out often since then, and on March 31, they got married because Makiri was already one m.onth pregnant. For their wedding, Makiri's father gave them the following: a. Cash of P500,000 and $100,000, whichthey im'ested as foilows: They deposited P300,000 in a long-term trust .fund. They deposited P200,000 in a ctrrrent account' They deposited the $100,000 in a hank zuthorized by the BSP to operate as an FCDU. b. P. Nagpala's prornotion - P. Nagpala was promoted, &om janitor to accounting department staff'. c. Mapagpala Corporation shares of stock worth PeM'
a. b.
c.
In December, P. Nagpala and tv{akiri counted the trXe."lsings tJrey received during the year: a. The first baby, born on November 30,2{}13: A h;bv boy! b. Their reoeipts/expenses: Couple ,E*II_@a Makid Compensation income, net of SSS/PhilHealth, Pag-Ibig contributions of P10,000 and withholding tax
ofP18,300
t,xtr month pay and midyear
subsidy
Rice Medical benefit forP.
bonur:
Napala Uniformlclothing allowance Laundry allowance
n)1,704 36,000 18,000
i0,000 5,000 3,000
Rental value ofthe house and lot v,ittur, the company compound used by thtl couple as residence. They are required to reside therein so that P. Nagpaiii rvould he available to the company anltime Yield from the long-term trust fund, net Interest, current account, net Interest, dollar account net 225,A04 Dividend income, net Income from practice of profession, net Expenses, practice of profession
P 180,000 38250 6,40Q
i03,600 P540,000 200,000
C
68. On ac.count of donation by reason of marriage, the fath:r of ldakiri a. Canclairn a derluction of Php 10,000 from the gifts rnade to P.Nagpala and Makiri b. Can clnirn a deduction of Fhp 20,000 flom the gifts made to P.ltlagpala and Makiri c. Shall fite the donor's tax return within 30
C
69. Final taxes remitted by the couple's payors for their h*ome totaled: a. ?44,562 Dividend income: 225/90% x 10% = 25 b. P19.562 Interest: 6.4/80% x 20% = 1.6 c. P35,000 FCDU: 103.6/92.5% x 7.5% = 8.4 d. P31,550
1I
A
70.Income tal( still due from a. P29,450 b. P9,950 c. P9,650 d. P23,540
tle couple for the taxable
year 3013:
lrr-2017, P. Nagpala passed the CPA Licensure Examination. E{e was promoted as the Accounting Manager in the company's Accounting Department. lvlakiri stopped rvorking to have more time for her husband and three (3) children (three more wpre born from 2014 to 2017, butthe youngest died at the age of 3 months in 2017 wtrile the eldest lives with Makiri's parents) The year was a lucky year (financially) for the couple. They were able to buy a 2-storey commercial building. A book about'Makiriis Code" written by Makiri was pubtrished and becarne a bestseller. They were able to sell one-half of their interest in the corporation to a friend at a gain of P300,000 (SP is Php l'3M)' At year-end, they computed their financial blessings: P 684,000 a. R"ental income -net of withholding tax * (Expenses - building rental husiness F200,000) 450,000 I b. Royalty income from the book, nei c. A brand new car, purchased by the fiompany for P. Nagpala (the car was registered in the name of 1,088,000 P. Nagpala) - purchase cost... d. Otherbenefits glven by the company to P. Nagpala: 40,800 Groceries for the family 240,000 Salary inerease, P20,000 per month Tuition fee, shouldered by the ccmpanv when F. Nagpala attended a computer crash course to learn about the software being used in the company's 30,000 accounting For the taxable year 2A17,
dePartrrent
B
71.P.Napala may claim personal exempticns (basric and additional) of: a. P150,000 yung eldest child, not living with
b. c. d.
A
72.
P125,000 P100,000 P75,000
Makiri's taxable income is: P210,000 b. P192,000 c. P310,000 d. P460,000 L,
A
73. The final tanes on the couple's passive a.
P 75,000
b. P 50,000 c. d.
B
P 56.500 P 62,500
income and capital gain for 2017 totaled'.
100 x 5% + 200 x 10% + 450 / 90% x 10%
74.The fringe benefit tax withheld by the compar.y pertaining to the benefits given to P. Naglala dwing the year totaled: a. P531,200 b. P545,317 c. P289,317 d. Y215,204
ln November 2018, while the couple were talking about haviug another child, P. Nagpala suffered a cardiac arrest and died 3 days after, withoot uoy last will and testanlent. By year-end, the estate tax was paid and the -estate was distributed to his legal heiri. Makiri rvent braok tro the practice of her profession and continued operating the commercial building
D
75.If anincome tax return is to be flled
fcrr the 2018 inconoe of P. Nagpala, how nnuch personal and additional
exempions maybe claimed?
a
Php 20,OOO b. Php 125,000 c. Php 75,000 d. Php 100,000
not living with yung eldest child
Later in Novemb er Z}l9,Makiri married P. Nansalo. the best frie,nit of F. Nagpala. Unfortunately, the marriage did not last long when Makiri died in January 2,202!, one riay after giving birth to their fust child. Makiri left the following:
Mel$i
a. b.
Property owned before marriage Income of property in (a.) c. Property acquired during marriage: 1. By gratuitnus title 2. By onerous title d. Income of properg'in:
e.
f.
g.
c-1 CA
Php 2,01t0,000 500,CI00
P.Xatlsglg Fhp 3,000,000 750,000
1,900.00c 4.0c10,000 300,C11,]0
8CC,0(!0
life insurance where the beneficiary is: 1. Her mother - revocable 2. Her son - irrevocable Receip of proeeeds of insuranc€ on property owned before the marriage which were destroyed by fire on March 31,,2021 FMV:March 31,2021 Insuance recovery The property acquired during marriage - by gratrritous title were acquired thru inheritance: FMV (time of inheritance),4 Y,
2,200,000 . 2,000,000 150,000 200,000
Proceeds of
I.200.000 8C0,000
7,2i1s,000 1,S00,000
2,800,000 2.500,000
1,8")0,0G0
years ago
FMV (time of inheritance), I
y*ear
2,400,000
ago
Deductions clairned by the estate:
a. b.
c.
Funeral exprlses $A% was cov?red by a m*raorid plarr) Unpaid mortgage on preperty acquired duinig n:ar"riage h], rrnernus fitle: By lvlakiri (used as famiiy hona,l) 2. By P.Nansalo (used as rest hou"se) Claims against the estate
l.
Php 250,000
800,000 200,000 100,000 GE din
'to.. A
76. The exclusive property of Makiri is a. Php 4,700,000 b. Php 2,200,000 c. Php 1,900,000 d. Php 3,400,000
B
77.Tlnle gross estate
ofMakiri is
a. Php 16,650,000
b. Php 16,750,000 c. Php 15,850,000 d. Php 15,950,000
A
78. The vanishing deduction is a. Php 321,313 b. Php 317,015 c. Php 318,089 d. Php 331,891
B
79.T\e net ta:rable
estate is
a. Php 7,407,985
b. Php 7,403,687 c. Php 7,393,109 d.Php 7,4A6,911
C
'80. Sales during the year:
A
Subject to: l2o/o
Php 900,000
0o/o
1,000,000 4,100-000 Php 6,0fi),fi)0
Exempt
Total
Who iVare srrbject to VAT? a. A, B, C andD b. B andC c. Only D d.
D
C Php 950,000 950,000 3.100.000 Php 5,0fi),0fi)
B Php 1,000,000 900,000 2.100.000 Php 4,0fi),0fi1
Php 1,000,000 1,000,000 1.000.000
Php 3,0fi),0fi)
Wag mong isama yung VAT-exempt sa pagcompute nung 1919500 threshold.
A,BandC
SCHEDULAR INCOME TAX RATES -IIIIDIVIDUALSI 5o/o
Not over 10,000
ae exces::er
Over PI0,000 but not over P30,000
P 5 oo
Over P30,000 but not over P70,000
P2,soo
irldffir
Over P70,000 but not over P140,000
P8,soo
iiilffit ""
Over P140,000 but not over P250,000
PYz,soai
Over P250,000 but not over P500,000
P5o,ooo
Over P500,000
Pt2s,ooo
; ioor;;r
r1',ffif
*" .*"*.
*
**:' "'" "*"' """
#rrffi.'T" #ffif
-e
*o
**
excess over
The End!
t4
