A Aco The Review School of Accountancy ‘Wel. No. 735-9807 & 734-3989 BUSINESS LAW & TAXATION 13 Ay Final Pre-Board Examination 200 Pov " Seer MULTIPLE CHOICE : INSTRUCTIONS: Select the correct answer for each of the following. “ (questions. Mark only one ane Jor cach item by shading the hox corresponding to the letter of your choice on the sheet prawtied STRICTLY NO ERASURES ARE ALLOWED. Use pencil no. 2 only. prow 1.A partnership that has for its object determinate things, their usd specific undertaking, ox the exercise of a profession or vocation, Tut#* °F a. Pacticular e. tamites Bl General 2 Universat This partner cannot engage in business for himself, unless Lhe partnership expressly permits him to do so. a. Industrial ce. Limited b. - General a, Capitalist 3.A stipulation which excludes one or.more partners from any share in the or losses is~ pe ¥ © Profits a. Void unenforceable Valid d. Voidable 4. These partners shall be liable pro rata with all their property and after all the partnership assets have been exhausted. >. Only capitalist partnei 6. Only general partners All partners, including industrial ones 3. Only Limited partners 5. There is partnership except: a. Two or more parties consent to a contract, oral or written b. They give money, property or industry to a common fund There is division of profits and losses among themselves There is no fiduciary relationship 6.A: An agreement which excludes one or more partners from shares in the profits or losses is valid as long as it is voluntary A power aS managing partner granted after the partnership has been constitured may be revoked at any time. None of the partners may make any important alteration in the immovable property of the partnership even if useful to the partnership without the consent of all partners Al] statements are correct oniy © is correct only 8 is incorrect Only B and,C are correct the statements is not tru Every pactner must account to the partnership for any benetit received even if it is not owing to the partnership. partners in relation to a specific 7. Which o: b. A partner is a co-owner with his partnership property. ic. A sale or assignmont by a partner of his whole interest in the partnership does not .of itself dissolve the partnership. All the partners share in the losses always. a 0 loss where one partner acting within LA: the partnership is bound to make good th Ea i o me . roperty of a third person and ‘arent authority receives money oF P' an a micapplien it~ bs Alpetson accepted as a partner into on Goligetions of the partnership even ose rinership- crfte credtvece of the portnecanip shall be preferred to tho Togerds the partnership property: " GALL statements are correct BL Only B 4s wrong existing partnership is Liable for all ‘arising before his entry to the e of each partner as ce. Only € is true a. B and € ace correct. cet we eee Page 2 of 10 Partnership involves a fiduciary relation. T It is preparatory contract 4 . It is a real and accessory contract. ¥° Partnership contract is perfected by mere consent /\ e- Statements a, B and D are correct b. Only B is correct c. Only C is correct a Only D és correct (C10. D ana & are capitalist restaurant business, Later, call cards and other cellphor Partners while F is an industrial partner in their F put up a cellular phone loading stations, sells ne accessories. Has F any liability under the circumstances? @. No, since his other business is not competing with the business or the partnership, B. Yes, because he can’t engage in business for himself always. c Yes, becausé he is precluded by law to engage in any other business, except if there is stipulation allowing hin. a. No, there is no showing that the business of the partnership is being prejudiced, CE 11. one of the following does not require stockholders’ approval ’ + Change of corporate name Merger or consolidation Declaration of cash dividend Investment of corporate funds outside main purpose of the corporation aoue B, 12,1 a corporation, two or nore positions may be held concurrently by the same Person, except that no person shall act as- a. President and chairman of the board b. President and secretary c. Secretary and treasurer d. Treasurer and director CL 13. me toltowing are qualifications of corporate directors, except— a. Must own at least one share of stock b. Must not be convicted by final judgment with imprisonment at least 6 years and committed within $ years prior to election ©. Majority axe citizens of the Philippines 4. Ownership of shares must be recorded in the books of the corporation di. Bho folowing’ wre: tho:equislen xcept ono fot atid aataratich andloe Nearer eearraecesiereen ‘a. Existence of original and unissued shares b. Existing unrestricted retained earning S c. Dividends declaration by the Board of Directors and approved by 2/3 vote of the outstanding capital stock d. It ds issued to increase the authorized capital 15. Purely ultra vires acts of the officers of a corporation to invest corporate ‘funds in another business or corporation, i-e., acts no contrary to law, morals, and publics policy may be ratified by: a. Majority vote of all members of the board b. Stockholders with 1/2 of voting power c. Stockholders holding 2/3 of the voting power d, Majority vote of the board present QD) 16. Requirement to effect the amendment of the by-laws of a corporation 2. Majority vote of the board of directors b. Majority vote of the outstanding capital . Vote of 2/3 of the outstanding capital stock @. Majority vote of the board of directors and majority vote of the outstanding capital stock 17. The following cannot be incorporator of a corporation: * A corporation organized under Philippine laws A resident alien A married woman without the consent of her husband even if the payment of shares is paraphernal property d. Subseriber who pays less than 25% of his subscriptionA ReSA: The Review School of Accountancy Page 3 of 10 48. One of the characteristi of treasury shares is that— a. They may be reissued or sold again PL They have status of outstanding shares c. They may participate in the meeting of corporation as votsl shares . re is 4, They are entitled to dividends B 19. The following defect will preclude the creation of even a de tacto corporation , a. The incorporatora or a certain number of then are not residents of the Philippines 5. Lack of certificate of incorporation trom the SEC Name of the corporation closely resembles that of a Preexisting corporation and may deceive the public a. There is actual use of corporate powers anywnere in the world, (2) The meetings of the menbers of a non-steck corporal.ion may be held anlywhere within the Philippines. ™ m on may be held a. (2) is true but (2) is false b. (1) is false but (2) is true fi ©. Both are false 3. Both are true A 21, A writes 4 promissory note in favor of hia creditor, B. Tt says: “Subject to my option, i promise to pay 8 ®1 Million or his order or give #] Million worth of cement. Signed, A.” is Lhe noce negotiab! a. No, because the exercise of the option to pay lies with Ay the maker. ©. No, because it authorizes the sale of collateral securities in case the note is nol paid at maturity. c. Yes, because the note is really payable to B or his order, he other provisions being merely optional. d. Yes, because an election to require something te be done in lieu of payment of money does not affect negotiability. 22. M makes = promssory note that states, “I, M, promise to pay #5,000.00 to B or bearer. Sisied, M.” M negotiated the note by delivery to 8, B Lo N, and N to 0. B iat M was bankcupt when M issued the note. Who would be liable to 0? had know a. Mand N since they may be assumed to know of M's bankruptcy b, . N, being O's immediate negotiator of a bearer note =. B, M, and N, being indorsers by delivery of a bearer note 4. By having known of M’s bankruptcy G 23. X executed a promissory note with a face value of 250,000.00, payable to the order cf ¥. ¥ indorsed the note to #%, to whom ¥ owed 830,000.00. If X has no defense 4t all against Y, for how mach may % collect from x? 20,000.00, as he is a holder for value to the extent of the difference between ¥'s debt and the value of the note. #30,000.00 as he is a holder for value to the extent of his lien. . c. #50,000.00, but with the obligation to hold £20,000.00 for Y's benefit ¢. None, as 2’s remedy is to run after his debtor, ¥ B) 2s. © cis com 10 grans of shabu worth #5,000.00. Aa he had no noney at the tine of the sale, M wrote a promissory note promising to pay P or his order 5,000.00. P then incersed the note to X (who did not know about the shabu), and x to ¥. Unable tc collect from P, Y then sued X on the note. X set up the defense of illegality of consideration. 1s he correct? 2. No, since X, being @ subsequent indorser, warrants that the note is valid and subsisting. No, since X, a qeneral indorser, warrants that the note is valid and subsisting. c. Yes, Since a void contract dees not give rise to any right. a. Yes, since the note was bore of an illegal consideration which is 3 real defense. in due course holds tne insirument, free from any defect of tite of les and free from detenses avaiiabie to prior parties anong thowvelves. @ of such a defense is~KDA: Ine Keview Scnoo! or AccoumLalLy a. Fraud in inducement ib. Duress amounting to forgery ¢. Fraud in esse contractus d. Material alteration 26. X is the holder of an instrument payable to him (x) or his order, with ¥ as jlaker. X then indorsed it as follows: “Subject to no recourse, pay to Z. Signed, X." When Z went to collect from ¥, it turned out that Y's signature was forged. Z now sues X for collection. Will it prosper? ‘a. Yes, because X, as a conditional indorser, warrants that the note is genuine. b. Yes, because X, as a qualified indorser, warrants that the note is genuine. c. No, "because X made a qualified indorsement. G. No, because a qualified indorsement does not include the warranty of genuineness. 27. D, debtor of C, wrote a promissory note payable to the order of C. C's brother, i, ‘misrepresenting himself as C’s agent, obtained the note from D, then negotiated it to N after forging C's signature. N indorsed it to E, who indorsed it to F, a older in due course. May F recover from E? No, since the forgery of C’s signature results in the discharge a. of &. Yes, since only the forged signature is inoperative and E is bound as indorser. . c. No, since the signature of C, the payee, was forged. d. Yes, since the signature of C is immaterial, he being the payee. B, 2.x gonstunoted » cnateen nortaage on a car (wxlued at siniiziion pesos) te secure 3"9500, 000.00 loan. For the mortgage to be valid, X should have Registered the mortgage. : Ownership of the car. Delivered the car to the creditor. Registered the car in his name. pore encumbrance- a. Yes, since it is payable to bearer. bl * Yes, sinee it contains an unconditional promise to pay a sum certain in money. c. No, since the promise to just pay a sum of money is unclear. SL Nol since it contains a promise to do an act in addition to the payment of money. 30. M, the maker, Assued 2 promissory note to Py the payee which states: “I, My pitaite to'pay Por order the amount of Phpl-Miilion. Signed, M.” negotiated Promote by indorsement to N, then W to 0 also by indorsenent, and 0 to Q, again ree PSeSsement. But Before O indorsed the note to Q, O's wife wrote the figure thon the note after “Php1” without O's knowledge, making it appear that the rote is for Phpl2-Million. For how much is © liable to Q? oo Brol-Miilion since it is the original tenor of the note. f prbicuiition since he warrants that the note is genuine and in ail respects what it purports to be. Php12-Million since he warrants his solvency and thi good title to the note. : d. Php12-Million since he warrants that the note is genuine and in all respects what it. purports to be. e at he has @ rity for the loan he obtained shall secure the Is the 31. D constituted a chattel mortgage on his car as sec) from C of BIM. It was further stipulated that the same mortgage payment of another loan which the debtor D may incur in the future, chattel mortgage valid? 0. The chattel mortgage for both loans is valid. b. The mortgage for the #1M is the only one valid. ; c. the mortgage as regards the future loan is the one valid’ a. mortgage is extinguished because of the void stipulation on The the ground that it cannot secure a future obligation.ReSA: The Review School of Accountancy Page 5 of 10 a. The brother may stiil recover the lands because the sale is unenforceable b. The buyer shall be liable to the brother for the purchase price because the sister failed to forward it to her brother. c.+ The sale is void because the authority of the sister is not in public inst cunent. sale is entorceable because the letler of the brother is sufficient authority to sell. regards the same thing and one of th one liable for damages to the third oe 4. The principal because ould not have entered into the contract since he already hes an agent. b. The agent because in case cf conflict of interest, the principal's interest provatls. c. The principal because ho ig really the one entering into contract ot the agent. i. The agent if he acted in bad faith otherwise it is principal. pal and agen! contracted with different persons as contracts shall therefore be rejected, the on shall be: 35. P, 25 years old, appointed years old, as his agent to sell certain goods for $20,000.00. Thereaftar, A'scld Lhe goods to F for the said amount. Py however, leacnad that the price of the goods had Increased to $22,000.00 so he y Sought to a.saffirm the sale made by A to B, and brought an action to recover the goods frer B on the ground that A’s acl was voidable. A, being a minor, and hence, could net be an agent. Decide . the sele is valid because the principal is capable. The sale is void, because A is a minor and therefore, cannot be an agent. 2. The sale is voidable, because A is a minor. 3. The sale is unenforceable, because A excocded his authority. e until such income is recognized, Taxable income is 36. There is no taxable incon recognized when the taxpayer fails to include the income in his income tax return income has been actually received in money or its equivalent income has been received, either actually or constructively transaction that is the source of the income is consummated 37. Irish, Inc., a Philippine corporation, sold through the local stock exchange 10,000 PLOT shares that it bought 2 ycars ago. Irish sold the shares for P? million and realized a net gain of 200,000.00. How shall it pay tax on the transaction? a, ft shall declare a P? million gross income in its income tax curn, deducting its cost of acquisition as an expense b. it shall report the P200,000.00 in its corporate income tax return adjusted by the holding period. : It shall pay 5% tax on the first P190,000.00 of the Pz00,000.00 and 10% tax on the remaining P100,000,00. Tt shall pay a tax of one-nalf of 14 of the P2 millfon gross sales. 38, The spouses Chris and Kathleen wanted to donate @ parcel of land to their daughter Myles who is getting married in December, 2U11, The parcel of land has @ Zonal valuation of 420,000.00. What is the most efficient mode of donating the recom ety?@ en FS ® ReSA: The Review School of Accountancy 8. The spouses should first donate in 2011 a n tion 0 Property valued at 720,000.00 then spread Pre sonar tote equally for 2012, 2013, 2014 and 2015, " ’ Page & of 10 B. Spread the donation over a period of 5 Fiod of 5: years by a donating P160,000.00 each year from 2011 co 20ist PSS ©- The spouses should each donate a P110,000,00 porion of the value of the property in 2! 100,000.00 in 2012. @. The spouses should each donate a 100,000.00 000.00 portion of the value of the property in 2011, and another P100, 000.00 each in 2012, then, tn 2013, Helena should donate he sovees 20,000.00, : nt 011 then each should donate 59. Kimberly, compensation income earner, filed her incone tax return for taxable year 2007 on March 30, 2008. On May 20, 201i, Kenberty Seentuce at asseaanent notice and letter of demand covering the tamabie seen sabe eae che postmark on the envelope snows April 10, 2011, Her return ia’eer Soni get fzaudulent return. Can Kinberly raise the defense of presceipe ions a. No. The 3 year prescriptive period started to run on April 15, 2008, hence, it has not yet expired on April 10, 2011, b. Yes. The 3 year prescriptive period started to run on April 15, 2008, hence, it had already expired by May 20, 2011. c. No. The prescriptive period started to run on March 30, 2008, hence, the 3 year period expired on April 10, 2011. d. Yes. Since the 3-year prescriptive period started to run on March 30, 2008, it already expired by May 20, 2011. 40. Patty, Inc., bought 2 parcel of land in 2009 for P7 million as part of its inventory of real properties. In 2010, it sold the land for P12 miJlion which was its zonal valuation. In the same year, it incurred a loss of Pé/miliion for selling another parcel of land in its inventory. These were the only transactions it hac in its real estate business. Which of the following is the applicable tax treatment? a. Patty shall be subject to a tax of 6% of P12 million. 2 b. Patty could deduct its P6 million loss from its P5 million gain. » ¢. Patty's gain of PS million shall be subject to the holding period, d. Patty's 26 million loss could not be deducted from its P5 million gain. X 41 to 45 axe based on the following: In 2014, George James, single, supports the following: Earl, his significant other; Elirie, a legally adopted child who became 21 years old during the year; Vanessa, an 18 year old niece and Gorgonio, a senior citizen who is not related to him. He earned P2,500,000.00 from his beauty parlor and received P250,000.00 as Christmas gift from his spinster aunt. He had no other receipts for the year. The cost of services of the parlor was 500,000.00 and the expenses for the operation of his beauty parlor amounted to 250,000.00. 41. For tax purposes, his gross income for 2014 io ‘a. B2,750, 000.00 c. — P2,000,000.00 b. 2,500, 000.00 a. P1, 780,000.00 . The Oxtput VAT for 2014 is: teapot 9330, 000.00 c. P240,000.00 b. — P300,000.00 d. None, not VAT-registered is: 43. The total personal exemptions for 2014 ‘a. P100,000.00 c. PB $0,000.00 b. “P 75,000.00 d. None of the choices e if he uses itemized deductions is: Ne ie nego c. pt, 425, 000.00 B.P1,675,000.00 Gone of the choices ion 45, The taxable net income for 2014 if he avails of the optional’ standard deduct “ gf’ —- 1, 425, 000.00 +00 3 4 $2 1300; eca%e9 SZ None of tho choicesKedA: Ine Review School of Accountancy Page 7 of 10 46. Eman a Filipino citizen, migrated to the United States some six years ayo and got @ permanent resident status or green card. He should pay his Philicuins income taxes on a. the gains decived from the sale in Calitornia, U.S.A. of jewelry he purchased in the Philippines b. the proceeds he received from a Philippine insurance company as the sole beneficiary of life insurance taken by his father who died recently, the gains dorived from the sale in the New York Stock Exchange of shares of stock in PLDT, a Philippine corporation a dividends received froma two year old foreign corporation whose gross income was derived solely from Philippine sources A 17.4 actstorie, « sate propeictor, mupe and a6115 “kinot at Sitanbo" Both of which a. Within 25 days from September 30 b. Within 45 days from September 30 ©. Within 15 days from Soprember 30 ~S. Within 30 days from Septenber 30 B 48. Using the same data in the immediately preceding number, when should Ka Aristotie file the quarterly income tax return for his taxable net income for the period of June 1 to September 30? On or before October 15 of the current year On or before November 15 of the current year On ox before April 15 of the succeeding year &. None of the choices Joint-stock company formed for the purpose of undertaking construction projects. Business partnership engaged in energy operations under @ service contract with the government. Joint account (cuentas cn participacion) engaged in the trading of mineral ores. 50. Jayson and Landri ce were legally separated. They had six minor children, all qualified to be claimed as additional exemptions for income tax purposes. The court awarded custody of two of the children to Jayson and three to Landrica, with Jayson directed to provide full financial support for them as well. The court awarded the 6th child to Jayson's father with Jayson also providing full financial support. Assuming that only Jayson is gainfully employed while Landrica is not, for how many children could Jayson claim additional exemptions when he files his income tax retarn? a. Six children e Three children b. Five children a ‘Two children 51. Real property taxes should not. disregard increases in the value of real property occurring over @ long period of time, To do otherwise’ would violate the canon of a sound tax system referred to as. a. Theoretical justice Administrative feasibility b. Fiscal adequacy Symbiotic relationship , 52. As 2 general rule, within what period musi a taxpayer elevate to the Court of 2 Tax Appeals a denial of bis application for refund of income tax overpayment? a. Within 30 days from receipt of the Commissicner’s denial of his application for refund ‘ Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax. . Within 2 years from payment of Ue income taxes sought to be refunded. Within 30 days from receipt of the genial or within two years trom payment « ao8B B The P1090, 090, c0 Schedule for donor's toy ay fit ds 5 si ; a 5: Stee’ play Ge oe ohne STEM ema soy 4. Mase POY # made as a result of tm 1 bee ut the endowment ® Frenchman, © Live and e. i siness in the Philippines trade or business in the Philippi maeged in trada or business in che ey enilEpines 56. The taxpayer seasonab] documents. > Supporting Desizous of an *o the Court of Tax Appeals not ister then’ The ‘MORNE should file Ais epoch a. August 310 Sort ©. Auge b. August 30, 2011 ont 1, a a. August 1, 2017 57 to 61 are based on the fol spouse under con: 1, 2018: Real properties Family lot acquired by the decedent before marriage, FMV, P500,000.00 Family house built using the salary earned by the surviving spouse during the marriage, EMV lowing: The dece: dent, a married nan Jugal partnership of gains, with a surviving with the following data died on March 900,000.00 Coconut farm inherited by the surviving spouse ducing the marriage, Fuv 100,000.00 Mango orchard, FMV 800, 000.00 Personal properties Bank deposit under the name of the decedent representing salary earned before marriage 150,000.00 Gold necklace acquired during the marriage using the surviving spouse's exclusive money 120,000.00 Several pieces of jewelry acquired using the exclusive money of the decedent 300,000.00 ‘ollowing expenses/deductions are claimed: eS ponara eiestees (408 shouldered by relatives) 100,090.00 Judicial expenses (including P50,000.00 lawyer's aie fee incurred on September 5, 2014) 120, 000 0 A piece jewelry lost through theft on September 15, 2014 $0,090.00 Gambling debts of the decedent foci 1009. Unpaid realty tax (coconut farm) for the three eit quarters of 2104 aims against an insolvent debtor (25% can be collected) seein 00 Medical expensesReSA: The Review School of Accountancy 97. How m Page 9 of 10 => sh ta the conjugal properties? ao P1,780,000.00 ‘ e _ ® 900,000. wb! bu; 00000/00 &. None Of the chotoes 58. How a is the exclusive properties? Bl p2s000;000.00 @! Mode OF Ene chotoas B 59. How woh is the family home deduction? a P21,000,000,00 is Pe 700,000.00 D 60. How mich is the total ordinary deduct ions? 46000 aS. a P 460,000.00 es P 310,000. 00 62to 66 are based on the following: A processor of sardines and mackerel registered under the VAT system on January 7, 2614 after his sales exceeded the VAT threshold amount in the previous year. He became subject to VAT for the first time. The following selected data were taken from his books: Inventory, December 31, 2013 purchased from VAT-registered seller: Cost P 600,000.00 Net realizable value 500,000.00 VAT paid on December 31, 2013 inventory 72,000.00 Inventory, December 31, 2013 purchased from VAT-exempt selier 800,000.00 The following transactions are recorded during the first month of the 2014: Sales of canned sardines and mackerel, net of VAT 800,000.00 Purchases of fresh sardines 70,000.00 Purchases of onions, tomatoes, ginger and other spices 60,000.00 Purchases of labels and packaging materials, net of VAT 50,000.00 Bills from a trucking company Cor the delivery of canned Sardines and mackerel, net of VAT (only P10,000 was paid) 40,000.00 Ay 62, tow much ie the output Lax? a. P 96,000.00 ee P 80,000 00 b. P 85,714.28 dad. None of the choices Ge 64. How mach is the presumptive input tax? a. P 15,600.00 ce. B 2,400.00 bl 5,200.00 d. None of the choices h 65. How much is the total creditable input taxes? a. P 81,600.00 wc. P 22,400.00 b. — P 72,400.00 d. None of the choices iW) 66. How mach is the value-added tax payable? , a. P 73,600.00 c. PB 14,400.00 s b. P 23,600.00 d. None of the choices B 67. In a certain civil case, Wilfredo, plaintifé, was awarded by the court P20, 000 Ganages representing profit he failed to realize on account of defendants failure to comply with his obligation to Wilfredo. Are those damages Laxapie incom of Wilfredo? : No, because damages are generally not subject to in Yes, because damages which are excluded from gross income are only those that are paid arising from injuries or sickness. c. No, because no criminal case was filed by Wilfredo. OL - Yes, because damages arising out of a civil case is always taxable under the current provisions of the Tax Code.en accent en ne ReSA: The Review School of Accountancy Page 10 of 10 1) ch noon as the foulocng ceecioes ny terse eivinin cin woe ee Lanne ere es a. Interest from peso bank deposit, Philippines b. Interest income from a debt instrument not within the coverage of deposit substitute, Philippines c. Interest income from a debt instrument within the coverage of a Seposit substitute, Philippines Interest on government cebt instrument and securities (regardless of number of lenders at the tine of the origination), Philippines a 69. Which of the following received by a domestic corporation shall not be subject to the capital gains tex? a. Capital gains from sale of shares of stock not traded in the local stock exchange b, Capital gains from sale, barter, transfer and/or assiqnment of shares of stock of publicly-listes companies not con; minimum public ownership jant with mandatory Capital gains fron sale, darter, transfer and/or assignment of shares of stuck of publicly-listed companies compliant with mandatory minimum public ownership Gains realized from sale or exchange or disposition of land and/or building classified as capital assets Dr0.0n0 ot te fotoning tn nt atest se talched Dn ee ee Ne ai al ape Sem cana EL See Ss ea ae twtnncden sesat es Singapore c. Domestic common carrier by water transporting passengers from Manila to Cebu . ds Domestic common carrier by land transporting passengers from Manila to Legazpi City END OF EXAMINATION/3] The Review School of Accountancy ' ‘Tel. No. 735-9807 & 734-3989 TAXATION hus FINAL PRE-BOARD TAMAYO / GARCIA 36. C 7" 37.D = . 38.C 38.8 39. A ~~ T69. € = 40. B 70. D 2 Al. € 42. B 43. B = 4 44. B 45.C Sefutions 41. Groas_Recdipts - ~PE,500, 060.00} Less: _ 500,000.00 Gross Incdme : wie te 42. ‘Gross Recdipts 2,500, 000.00] fax rate | —— : 125 Output vat — E300,000.00| 43. a [Basic perfonai_ exemption 7 50,000.00, [Additional exemption (Elizie) 25,000.00 [Gross tncgne T= gssaoo-00] 4a. | _ Gross recéipts _ 2/500, 000.00 Less: Cost of services 300,000.00 Gross income = { BE7600, 000.00] Less: Opefating expenses T= 250,060.00) Basic personal exemption X50 ,000..00) ‘Addi tional exemption 2 | 25 600.00) Taxable ngt income . "Bi675.000.00] As. i Gross _rectipts = - Fz, 500,600.00 Less: Optional standard deduction (408 x 2,500,090) "(1 000, 000-00) Basjc personal exemption 50, 000.00) ‘Addi tional exemption _ 25,000.00) Taxable nt income +7 Bi 425,.000,.00 | . | 58. = Exclusive Conjugal Family 10 = TF 509, 000.00] Fanily be 00: Fasily Popse - ~ $800 ‘Bank deposit 750,000.00 [ Several pieces of jewelry 300,000. oe — Ciaims against an insolvent debtor [__ 8,000.60" Fotal | : i 350,000.00] “B_4,780,000.00 | 7 f ) _——_$__________————— STII nae earn EVARAINATON (RATCH 27) SM)¥ ReSA: The Review School of Accountancy ; 59. Page 2 of 2 Family lot = . = Fanily house (1/2 x 900,000) 2 500,000.00 Total 208. 450, 000.00 Nasteda — 950,000.00 at E1,000,000.00 sn ( [| __B.250,000.,00 } 60. # — Exclusive | Conjugal ictual (60% x P100, 000) 62,000, OF Limit (SY x 2,750,000) —13€.500..00 P60, 000.00, Judicial expenses (120,000- 50,000) B70 000.00 ‘Gambling debts ~ 7 70,000.00 Claims against an insolvent debtor 7 = “65, 000-00 Total . P_70,000.90 P190,000.00 Total oréidary deductions — AT a #260.000,00 | 61. _ : é [7 "Exclusive | Conjugal Total Gross Estate T_¥7950,000.00 | PI, 780,000.00 | P2,730,000.00 Ordinary deductions 7000000 180,000.00] , 260,000.00 Net estate before share of SS BB0,000.00| 1,590,000.00 2, 470,000.00 Less: Shard of surviving spouse | = [788,000.00 795,000.00 Wet estate Hefore special deductions $30,000.00 725,006.00 | 1,675,000.00 Tess: Special deductions Family hore 4 1 350,000.00) Standard deduction z 7 71000, 900.00) Medial Expenses (maximum) i 00, 000.00} Taxable net estate errs p00-ooy | 62. [Sates of cdnned sardines and mackerel F800, 000.00 [Ee rate] t tae Output VAT _ 1 B96,000.00 63. _ VAT-subject beginning inventory, (NRV is lower) T P 500,000,00 Rate T _ 2% 2% Trangitional input tay = * 00.00 Retual vat [paid 272 ‘Allowed (higher) i B72.000,.00 64. Purchases of onions, tomatoes, ginger and other spices P60, 000.00 [Rate iL __ _ a3 Presumptavg input tax Eg, 400.00 65. a Pransitional inj _ B72, 000.00 Presumptive input tax 2,400.00 Passed-on VAT on labels and packaging materials 6,000.00 (50,000 x 128) Passed-on VAT on trucking (10,000 x 128) 1,200.60 Total creditable input taxes : — B82.,600,00 66. Gutput VAT _ e I P 96,000.00 fess: Creditable input taxes = 81,600.00 | ": Foie. 200..00 Value-Added Tax payable TAXATION ~|FINAL PRE- BOARD EXAMINATION (BATCH 27) — @