1.Which of the following statements is not correct? Relatively…

Question Answered step-by-step 1.Which of the following statements is not correct? Relatively… 1.Which of the following statements is not correct? Relatively small meal allowances paid to rank and file employee intended to promote health and goodwill are*considered as de minimis fringe benefits.Not subject to fringe benefit tax.Not subject to income tax as compensation.subject to income tax as compensation. 2.Statement 1: Compensation income refers to all income payments, in money or in kind, arising from personal services under an employer-employee relationship.  Statement 2:  Compensation income must arise not from corporate services but under an employer-employee relationship and it is in the nature of income to the recipient employee.*Only statement 1 is correct.Both statements are correct.Only statement 2 is correct.Both statements are incorrect. 3.Which of the following is true?*The MCIT applies only when income is zero or when there is an operating loss.A partnership organized under our domestic laws is not a domestic corporation for purposes of taxation.Non-resident foreign corporations are subject to minimum corporate income tax.The MCIT is not due when RCIT is greater than MCIT. 4.Solita Corporation took a keymen insurance on the life of its President, Mr. Christian Cruz.  The policy designated Mr. Cruz’s wife as its revocable beneficiary in the event of death of Mr. Cruz.  In the event of Mr. Cruz’s death, the life insurance proceeds would be*taxable as the wife’s income.taxable as part of Solita Corporation’s income.excluded from the wife’s gross income.taxable as part of Mr. Cruz’s benefits as an employee. 5.A resident corporation is one that is:*Organized under the laws of a foreign country that engages in business in Makati City,Philippines.Organized under the laws of the Philippines that engages business in a special economic zone;Organized under the laws of a foreign country that sets up a regional headquarter in the Philippines doing product promotion and information dissemination;Organized under the laws of the Philippines that does business in another country. 6.Which of the following is true?*Non-profit corporations are exempt from corporate income tax.Domestic corporations shall choose ether MCIT or RCIT.Whenever MCIT is payable, there is a Net Operating Loss Carry-Over.MCIT does not apply to foreign corporations. 7.AAA is a private educational institution.  Which of the following is TRUE?*Its income from related and unrelated activities are subject to income tax.If the ratio of the gross income from unrelated activities over total gross income does not exceed 50%, it is subject to a preferential tax rate of 1%.If the ratio of the gross income from unrelated activities over total gross income exceeds 50%, it is subject to the regular income tax rate.All of the above 8.Which of these foreign corporations is subject to regular corporate income tax?*International carrierOffshore banking unitsCall center companyRegional operating headquarters of a multinational company. 9.Identify a FALSE statement.*A government hospital is income tax exempt on its related income.A private hospital is subject to regular income tax on its income, related or unrelated.A non-profit hospital is subject to a preferential tax rate of 1% if its gross income from unrelated activities does not exceed 50% of its total income.All of the aboveNone of the above 10.Which of the following taxable entities is subject to preferential tax rate/s?*Non-stock, non-profit educational institutionGovernment educational institutionPrivate educational institutionGovernment hospitalAll of them Business Accounting TAXATION INCOME 101 Share QuestionEmailCopy link Comments (0)