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WorksheetsACC 26 - MIDTERM
Total questions: 40
Worksheet time: 1hrs 28mins
Which of the following transactions is subject to 6% capital gains tax?
sale of condominium units by a real estate dealer
sale of real property utilized for office use
sale of apartment houses
sale of vacant lot by an employee
Which of the following sale transactions will be subject to capital gains tax?
sale of shares of stock by a dealer of securities
sale of shares of stock during an initial public offering
sale of shares of stock not through the local stock exchange by a person who is not a dealer of securities
sale of shares of stock through the local stock exchange by a person who is not a dealer in securities
Bryan sold the following shares of stocks of domestic corporation which he brought for investments purposes:
A. Listed & Traded: Selling price - Php 250,000; Selling Exp - 12,000; Cost Php 118,000
B. Not Listed & Traded: Selling price - Php 143,580; Selling Exp - 3,680; Cost Php 80,000. Determine the capital gains subject to capital gains tax.
(a)
Bryan sold the following shares of stocks of domestic corporation which he brought for investments purposes:
A. Listed & Traded: Selling price - Php 250,000; Selling Exp - 12,000; Cost Php 118,000
B. Not Listed & Traded: Selling price - Php 143,580; Selling Exp - 3,680; Cost Php 80,000. Compute for the capital gains tax.
(a)
Bryan, a dealer of securities, sold the following shares of stocks of domestic corporation :
A. Listed & Traded: Selling price - Php 250,000; Selling Exp - 12,000; Cost Php 118,000
B. Not Listed & Traded: Selling price - Php 143,580; Selling Exp - 3,680; Cost Php 80,000. Compute for the capital gains tax.
(a)
Bryan sold the following shares of stocks of foreign corporation which he brought for investments purposes:
A. Listed & Traded: Selling price - Php 250,000; Selling Exp - 12,000; Cost Php 118,000
B. Not Listed & Traded: Selling price - Php 143,580; Selling Exp - 3,680; Cost Php 80,000. Compute for the capital gains tax.
(a)
Statement 1: The determination of 6% capital gains tax on sale of real property is based on net capital gains realized by the seller of real property
Statement 2: Except for certain passive incomes, a non resident alien not engaged in trade or business shall be tax at 25% of his gross income derived from sources within the Philippines only
Both statements are correct
Both statements are incorrect
Only statement 1 is correct
Only statement 2 is correct
Statement 1: Proceeds of sale of real property classified as capital asset may be exempt from the 6% capital gain tax
Statement 2: Gain from sale of real property classified as capital asset to the Government may be taxed as income subject to income tax at the option of individual taxpayer.
Both statements are correct
Both statements are incorrect
Only statement 1 is correct
Only statement 2 is correct
Vincent sold a residential house and lot held for Php 10M to his friend. Its FMV when he inherited it from his father was Php 12M although his present FMV is Php 15M. The tax on the above transaction is:
CGT - Php 720,000.00
CGT - Php 900,000.00
Gift tax - Php 300,000
Value Added Tax
Vincent sold his principal residential house and lot held for Php 10M to his friend. Its FMV when he inherited it from his father was Php 12M although his present FMV is Php 15M. Assuming he will used 1/2 of the proceeds to acquire a new principal residence and he properly inform BIR about the sale. The tax on the above transaction is subject to capital gains tax of:
(a)
Vincent sold a residential house and lot held for Php 10M to his friend. Its FMV when he inherited it from his father was Php 12M although his present FMV is Php 15M. The said property is located abroad. The capital gains tax on the above transaction is:
(a)
Which of the following statements is correct?
Interest income on bank deposit or investment with maturity period of at least five (5) years is exempt from income tax.
Interest income on treasury-bond with maturity period of at least five (5) years is exempt from income tax
The tax exemption on long term bank deposit or investment extends to all types of taxpayers
all of the above
Which of the following income of an individual taxpayers is subject to final tax?
Php 10,000 prize in Manila won by a resident citizen
Dividends received by a resident citizen from a resident foreign corporation
Share in the net income of a general professional partnership received by a resident citizen
dividend received by a non-resident alien from a domestic corporation
Statement 1: All royalty income derived from sources within the Philippines are subject to Final Withholding Tax.
Statement 2: All royalty income derived from outside of the Philippines received by resident citizens are subject to basic income tax
only statement 1 is correct
only statement 2 is correct
both statements are correct
both statements are incorrect
A non-resident alien not engaged in trade or business derived Php 50,000 interest income from his long-term bank deposits here in the Philippines. How much is the final income tax of the said alien?
Php 10,000
Php 12,500
Php 50,000
0
Statement 1: Passive Income are subject to separate and final tax
Statement 2: Passive income are included in the computation of taxable income from compensation or business/professional income.
only statement 1 is correct
only statement 2 is correct
both statements are correct
both statements are incorrect
If an amount in a depository bank under the foreign currency deposit system is jointly in the name of a non-resident citizen such as overseas contract worker, or a Filipino seaman, and his spouse or dependent who is resident of the Philippines, the interest on such deposit shall be:
exempted in its entirety
subject to FWT of 15% in its entirety
50% exempt and 50% subject to final withholding tax of 15%
subject to regular income tax rate for individuals
Which of the following royalties earned within the Philis is not subject to 10% FWT?
royalties from computer software
royalties from book
royalties from literary works
royalties from musical composition
If the amount of PCSO/Phil Lotto winnings received by a resident citizen did not exceed Php 10,000, what type of income tax will apply?
FWT on passive income
Capital Gains Tax
Basic Income Tax
Exempt
If the amount of PCSO/Phil Lotto winnings received by a non-resident not engaged in trade or business did not exceed Php 10,000, what type of income tax will apply?
FWT on passive income
Capital Gains Tax
Basic Income Tax
Exempt
If the amount of PCSO/Phil Lotto winnings received by a resident citizen and resident alien is more than Php 10,000, what type of income tax will apply?
FWT on passive income
Capital Gains Tax
Basic Income Tax
Exempt
The following taxpayer who received a dividend income from a domestic corporation will received net of 10% FWT, except:
resident citizen
non-resident citizen
resident alien
non-resident alien engaged in trade or business
Which of the following cash and/or property dividends actually or constructively received by an individual shall not be subject to final tax but to regular income tax for individuals?
cash and/or property dividends from a domestic corporation or from a joint stock company
cash and/or property dividends from insurance or mutual fund companies
cash and/or property dividend from regional operating headquarters of multinational companies
cash and/or property dividends from a non-resident foreign corporation
Which of the following income will be taxed in the same manner regardless of the classification of the taxpayer?
capital gain on sale of land and/or building
capital gain on sale of shares of stock of a domestic corporation
ordinary gain on sale of land and/or building
ordinary gain on sale of shares of stock of a domestic corporation
As a rule, there is no income tax if there is no income. Which of the following is the exception?
capital gains tax on sale of a\land and/or building
capital gains tax on sale of share of stock outside the local stock exchange
tax on passive income
regular corporate income tax
Kris Inc. sold vacant lot to Moca corporation for Php 10,000,000 which it acquired at a cost of Php 5M. The fair market value of the said property per tax declaration is Php 12M, while its zonal value is Php 15M. How much is the income tax applicable on the transaction?
(a)
Kris Inc. sold vacant lot for Php 10,000,000 which it acquired at a cost of Php 5M. The fair market value of the said property per tax declaration is Php 12M, while its zonal value is Php 15M. What type of income tax applicable on the transaction if the buyer of the property is the Philippine government or one of its owned and controlled corporation.?
Basic Income Tax
Capital Gains Tax
Either Basic Tax or Capital Gain Tax at the option of the seller
Either Basic Tax or Capital Gain Tax at the option of the buyer
Kris Inc. sold vacant lot located abroad for Php 10,000,000 which it acquired at a cost of Php 5M. The fair market value of the said property per tax declaration is Php 12M, while its zonal value is Php 15M. What type of income tax applicable on the transaction?
Basic Income Tax
Capital Gains Tax
Either Basic Tax or Capital Gain Tax at the option of the seller
Either Basic Tax or Capital Gain Tax at the option of the buyer
Which of the following is taxable based on income from all sources within and without?
domestic corporation
resident foreign corporation
non resident foreign corporation
all of the choices
The following passive income received by a domestic corporation shall be subject to 20% FWT, except:
interest income from peso deposit
yield from deposit substitute
dividend income from another domestic corporation
royalties
(a)
Statement 1: Gain on Sale of all kinds of capital assets are subject to the final tax on Capital Gains.
Statement 2: Gain from sale of real property classified as capital asset and located in Miami, Florida is not subject to the final tax on capital gain.
both statements are correct
both statements are not correct
only the first statement is correct
only the second statement is correct
In 2021, East Star Inc, sold shares of stock for Php 250,000. the shares, acquired in 2019 at a cost of Php 100,000, were held as investment, and were sold directly to a buyer. How much was the capital gains tax due?
(a)
In 2021, East Star Inc, dealer of securities, sold shares of stock for Php 250,000. the shares, acquired in 2019 at a cost of Php 100,000, were NOT held as investment, and were sold directly to a buyer. How much was the capital gains tax due?
(a)
Statement 1: fringe benefit expense plus the fringe benefit tax expense is equal to grossed-up monetary value.
Statement 2: A housing privilege of a police regional director within the compound of the police office is exempt from the payment of a fringe benefit tax
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
Statement 1: Allowances which are fixed in amount and are regularly being received every month by a supervisory employees are benefits which are included in the computation of the gross compensation income
Statement 2:The fringe benefit tax is a final withholding tax on the employee which are being withheld and paid by the employer
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
Statement 1: All fringe benefits which are not subject to fringe benefits tax are subject to ordinary income tax
Statement 2: Under the "convenience-of-the-employer rule" a fringe benefit received by a employee is exempt for ordinary income tax but it is subject to fringe benefit tax
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
Statement 1: The payment of capital gains tax is a requirement for the issuance by the BIR of a certificate Authorizing Registration
Statement 2: In an exchange of property, the fair market value of the property received in exchange shall be considered as the consideration
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
Statement 1: To be classified as capital assets, the property must not be connected with business
Statement 2: The capital gains or loss is computed by substracting the book value from the cost
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
Statement 1: A sale of principal residence is generally subject to capital gains tax
Statement 2: The rule on wash sale does not apply to dealers of securities
both statements are correct
both statements are incorrect
only statement 1 is correct
only statement 2 is correct
