1.If you are to choose between TRUE or FALSE, which is the correct…

QuestionAnswered step-by-step1.If you are to choose between TRUE or FALSE, which is the correct…1.If you are to choose between TRUE or FALSE, which is the correct choice for thisstatement: “A Domestic, resident foreign and non-resident foreigncorporation may deduct from their business income itemized deductions underthe Tax Code. ” ?(1 Point) TRUEFALSE 2.If BA HA LANA, CORP. is a Nonresident Foreign Corporation, what is the appropriate general  income tax  base and rate/s to apply for its interest income in Warsaw, Poland?(1 Point) Interest income; 20% final taxGross income; 25%None of the choicesTaxable net income; 25% 3.If you are to choose between TRUE or FALSE, which is the correct choice for this statement: “For domestic and resident corporation adopting the fiscal year accounting period, the taxable income shall be computed without regard to the specific date when specific sales, purchases, and other transactions occur such that their income and expenses for the fiscal year shall be deemed to have been earned and spent equally for each month of the period.”?(1 Point) FALSETRUE 4.How much is the taxable total net income of LJ if given the following information: “LJ, married, has two dependent minor brothers.  He is a partner of a general professional partnerships.   He is also engaged in trading business of his own.  The following data were provided by LJ in 2021: Gross income from LJ’s Trading Business Php1,000,000; LJ’s Trading Business Expenses  Php600,000; Interest income, BDO-Manila (Net of final tax) Php20,000; Share from the net income of a general professional partnership Php400,000; Royalty on books published in the USA Php150,000; Salaries as part- time accounting professor (gross) Php450,000 .” ?(1 Point) Php1,000,000Php1,400,000Php1,250,000Php1,420,000 5.How much is the income tax due from LJ if given the following information: “LJ, married, has two dependent minor brothers.  He is a partner of a general professional partnerships.   He is also engaged in trading business of his own.  The following data were provided by LJ in 2021: Gross income from Li’s Trading Business Php1,000,000; LJ’s Trading Business Expenses  Php600,000; Interest income, BDO-Manila (Net of final tax) Php20,000; Share from the net income of a general professional partnership Php400,000; Royalty on books published in the USA Php150,000; Salaries as part- time accounting professor (gross) Php450,000 .” ?(1 Point) Php190,000Php310,000Php316,000Php265,000 6.What is the amount of the taxable net income (income tax base) for Rivera & Reyes Partnership if the partnership is an ordinary partnership having the following details:  Gross income of Php2,200,000; Allowed deductions of Php1,200,000?(1 Point) Php 0Php2,200,000None of the choicesPhp1,000,000 7.What is the amount of the income tax due for Rivera & Reyes Partnership if the partnership is an ordinary partnership having the following details:  Gross income of Php2,200,000; Allowed deductions of Php1,200,000?(1 Point) Php 176,000Php 0Php200,000None of the choices 8.What is the amount of the taxable net income for Rivera & Reyes Partnership if the partnership is a General Professional Partnership having the following details:  Gross income of Php2,200,000; Allowed deductions of Php1,200,000?(1 Point) None of the choicesPhp2,200,000Php 0Php 1,000,000 9.What is the amount of the income tax due for Rivera & Reyes Partnership if the partnership is a General Professional Partnership having the following details:  Gross income of Php2,200,000; Allowed deductions of Php1,200,000?(1 Point) Php200,000Php 176,000None of the choicesPhp 0 10.If Gar Udo & Co. CPAs (GARUDOCO) receives from MABISATO Philippines, Inc.(MPI) the amount of Php1,000,000 for their services, which of the following statement is true relating to the income taxation of  GARUDOCO if MPI is their only client? (1 Point) The income tax of GARUDOCO is no higher than the amount of Php 80,000.The income tax of GARUDOCO is lower than the amount of Php 250,000.The income tax of GARUDOCO is not higher than the amount of Php 0.The income tax of GARUDOCO is lower than the amount of Php 200,000. 11.Which of the following is not valid inclusions to Gross Income?(1 Point) None of the choicesOther incomeBusiness IncomeCompensation Income 12.Which of the following is not applicable to taxation of Domestic Corporations?(1 Point) 20% of taxable net income25% of taxable net income2% of Gross Income8% of sales income tax rate option 13.Which of the following is not valid pertaining to exclusions?(1 Point) The applicability is more pronounced on natural persons13th month and other benefits not exceeding Php90,000SSS, GSIS, Philhealth, HDMF Premium contributions madeNone of the choices 14.Which of the following is not applicable to taxation of Resident Corporations?(1 Point) 2% of Gross Income20% of taxable net incomeNone of the choices25% of taxable net income 15.Which of the choices below is the best description for the substantiation to be complied so that expenses can be allowed as deductions from Gross Income? (1 Point) Notebook notations of the Treasurer with highlights.Purchase Orders that shows connection to the business.Excel Worksheet listing showing details of disbursements.Official receipts/ Invoices showing connection to business. 16.Which of the following best explains OSD and Itemized Deductions?(1 Point) Legal means for an equitable income taxationLegal options for Individuals to lower income taxesLegal means for corporations to lower income taxesLegal options on Deductions from Gross Income 17.Which of the following  is the best definition of ordinary and necessary expenses that are allowed as deduction from gross income?(1 Point) All disbursements and claims.Expenses and payments made.Usual and appropriate expenses.Legal and moral expenses made. 18.Which of the choices below is the best description of Exclusions and Deductions, respectively?(1 Point) Not a part of gross income; Subtracted from gross incomeExempt by reason of law; Not Exempt by reason of lawBased on law of the land; Based on treaty with foreign landGeneral pardon by the state; Grant of the state to losing firms 19.Which of the following best explains income taxation of GPP?(1 Point) GPP’s set-up is legal person but nature of business is of natural personsThe classification of GPP’s is corporation but taxation is natural personsThe nature of GPP’s business is that it is soley conducted by natural personsGPP’s are hybrid inasmuch as they are both natural persons and legal persons 20.Which of the taxes listed below is not allowed as deductions from Gross Income? (1 Point) Documentary Stamp Taxes paidFringe Benefit Tax on Fringe BenefitsMinimum Corporate Income TaxBusiness License paid in Makati City 21.If MABISATO Philippines, Inc. (MPI) is a branch of MABISATO Philippines, Inc., a corporation registered in the state of Delaware, USA as shown in its Articles of Incorporation  registered with the Securities and Exchange Commission of the Republic of the Philippines, which of the following is correct pertaining to the income taxation for MPI? (1 Point) MPI is 25% RCIT or the 2% MCIT, whichever is higherMPI may opt to choose 8% Special Income Tax RateMPI income tax is 2.5% of gross Philippine billingsMPI is 20% RCIT or the 2% MCIT, whichever is higher 22.If Mabisato Philippines, Inc. (MPI) is Philippine branch of Mabisato Philippines, Inc. (MPI) registered in the State of Delaware, USA , which of these choices is applicable for MPI?(1 Point) None of the choicesTotal assets excluding land should be less than Php100 million20% Regular Corporate Income Tax25% Regular Corporate Income Tax 23. What is the most important characteristic pertaining to income tax rates that distinguishes a Domestic Corporation from a Resident Foreign Corporation?(1 Point) The applicability of OSD and Itemized deduction is a relevant factor.The net taxable income and total assets excluding land is relevant.The income from within and without the Philippines is a relevant factor.The level of sales and other income is relevant in applying the rates. 24.In Income Taxation of Corporations where corporations can sufficiently substantiate the corporation’s ordinary and necessary expenses, which of the following is the strongest argument for using Itemized Deductions over Optional Standard Deduction?(1 Point) The ordinary and necessary expenses exceeds 40% of the gross salesOptional standard deduction was not an option considered to begin withThe ordinary and necessary expenses exceeds 40% of the gross incomeOptional standard deduction not opted beginning of the taxable year 25.If a SEP Individual taxpayer  would choose the 8% Tax on gross sales/gross receipts and other income option, which of the following is a valid statement supporting the choice?(1 Point) The level of gross sales or gross receipts of SEP is not exceeding Php3 million.The amount of the compensation income should be more than Php250,000.None of the choicesThe amount level of the gross sales or gross receipts of SEP exceeds Php3 million. 26.If  Mabisato Philippines, Inc. (MPI) is a Domestic Corporation and had Sales amounting to Php40,000,000 and if Cost of Goods Sold amounted to Php15,000,000 and if Business Expenses Amounted to Php1,500,000 and if interest Income from BDO Makati amounted to Php300,000;  how much is the MCIT?(1 Point) Php 759,000Php 750,000Php 500,000Php 506,000 27.If  Mabisato Philippines, Inc. (MPI) is a Domestic Corporation and had Sales amounting to Php40,000,000 and if Cost of Goods Sold amounted to Php15,000,000 and if Business Expenses Amounted to Php1,500,000 and  if interest Income from BDO Makati amounted to Php300,000;  how much is the taxable net income if MPI opted to  use Optional Standard Deduction (OSD)?(1 Point) Php 15,000,000None of the choicesPhp 18,000,000Php 10,000,000 28.If  Mabisato Philippines, Inc. (MPI) is a Domestic Corporation and had Sales amounting to Php40,000,000 and if Cost of Goods Sold amounted to Php15,000,000 and if Business Expenses Amounted to Php1,500,000 (of which Php300,000 were Entertainment, Amusement and Recreation expenses) and if interest Income from BDO Makati amounted to Php300,000;  how much is the  allowable Entertainment, Amusement and Recreation Expenses for MPI?(1 Point) Php 400,000Php 300,000Php 200,000None of the choices 29.If  Marigold Philippines, Inc. (Maripi) is a Domestic Corporation and had Gross receipts of Php40,000,000 and if Cost of Services amounted to Php15,000,000 and if Business Expenses Amounted to Php1,500,000 (of which Php300,000 were Entertainment, Amusement and Recreation expenses) and if interest Income from BDO Makati amounted to Php300,000;  how much is the  allowable Entertainment, Amusement and Recreation Expenses for Maripi?(1 Point) Php 300,000Php 400,000None of the choicesPhp 200,000 30.If  Mabisato Philippines, Inc. (MPI) is a Domestic Corporation and had Sales amounting to Php40,000,000 and if Cost of Goods Sold amounted to Php15,000,000 and if Business Expenses Amounted to Php1,500,000 and if interest Income from BDO Makati amounted to Php300,000;  how much is the  RCIT if MPI opted to  use Optional Standard Deduction (OSD)?(1 Point) Php 4,500,000Php 2,545,000Php3,750,000Php 2,500,000 LawSocial ScienceTax law45 904Share Question