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UST AMV COLLEGE OF ACCOUNTANCY

2ND Sem., A.Y. 2020-2021
IAC 17 – Integrated Course in Taxation
INCOME TAX ON CORPORATIONS

MULTIPLE CHOICE EXERCISES

c. No. Aplets is a non-resident foreign corporation
1. Which is not a characteristic of corporate income not engaged in trade or business in the
tax: Philippines.
a. Progressive tax c. General tax d. Yes. Aplets is doing business in the Philippines
b. Direct tax d. National tax through its exclusive distributor Kim’s Trading,
Inc.
2. For purposes of income taxation, which of the
following is not considered as a corporation? 9. The following passive income received by a
a. General partnership in trade domestic corporation shall be subject to 20% final
b. General professional partnership withholding tax, except:
c. Mutual fund company a. Interest income from peso bank deposit
d. Regional operating headquarters of b. Yield from deposit substitutes
multinational company c. Dividend income from another domestic
corporation
3. For purposes of income taxation, which of the d. Royalties
following is considered as a corporation?
a. General partnership in trade Use the following data for the next two (2) questions:
b. General professional partnership ABC Company and DEF Company formed a joint venture.
c. Joint venture or consortium for construction They agreed to share profit or loss in the ratio of 70% and
project 30%, respectively. The results of operations of the joint
d. Joint venture of consortium for engaging in venture as well as the co-venturers are as follows:
energy operations under a service contract Joint Venture ABC Co. DEF Co.
with the government. G.Income P5,000,000 P3,000,000 P2,000,000
OPEX 3,000,000 2,000,000 1,500,000
4. Which of the following is subject to income tax?
a. SSS and GSIS
b. Philippine Health Insurance Corporation (PHIC) 10. The income tax payable of the joint venture is
c. Local Water Districts a. P0 c. P300,000
d. Philippine Amusement and Gaming Corporation b. P150,000 d. P600,000
(PAGCOR)
11. The total income tax expense of DEF Co. is:
5. Which of the following is taxable based on income a. P0 c. P276,000
from all sources, within and without? b. P150,000 d. P330,000
a. Domestic Corporations
b. Resident Foreign Corporations 12. Assume the joint venture is tax exempt, the total
c. Non-resident Foreign Corporations income tax expense of DEF Co. is:
d. All of the choices a. P0 c. P276,000
b. P150,000 d. P330,000
6. The term applies to a foreign corporation engaged
in trade or business in the Philippines. 13. The share of a domestic corporation in the net
a. Resident foreign corporation income after tax of a joint venture or consortium
b. Nonresident foreign corporation taxable as a corporation of which it is a co-
c. Multinational corporation venturer is:
d. Petroleum contractor a. Subject to creditable withholding tax of 10%.
b. Subject to final withholding tax of 10%.
7. Which of the following is taxed on gross income? c. Subject to capital gains tax.
a. Domestic corporation d. Exempt
b. Resident foreign corporation
c. Non-profit cemetery 14. Statement 1: Interest income from bank deposit
d. Non-resident foreign corporation accounts, treasury bonds, T bills, other bank notes,
foreign currency bank deposits and yield from
8. Aplets Corporation is registered under the laws of deposit substitute instruments of non-stock, non-
the Virgen Islands. It has extensive operations in profit educational institutions which are used
Southeast Asia. In the Philippines, its products are actually, directly and exclusively in pursuance of
imported and sold at a mark-up by its exclusive their purpose as an educational institution, are
distributor, Kim’s trading, Inc. The BIR compiled a exempt from 20% final tax and 7.5% tax on
record of all the imports of Kim from Aplets and interest income under the expanded foreign
imposed a tax on Aplets net income derived from currency deposit system.
its exports to Kim. Is the BIR correct?
a. Yes. Aplets is a non-resident foreign Statement 2: Interest Income derived by a
corporation engaged in trade or business in the Philippine bank under the expanded foreign
Philippines. currency deposit system from its foreign currency
b. No. The tax should have been computed on the transactions are not subject to income tax except
basis of gross revenues and not net income. interest income derived from residents other than
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 OBUs, local commercial banks and branches of
foreign banks. 23. Bayan Inc., a domestic corporation in its 2nd year
A. B. C. D. of operation, had the following data on income and
Statement 1 True True False False expenses during the year 2018:
Statement 2 True False False False Gross income, Philippines P10,000,000
Business expenses, Philippines 2,000,000
Gross income, China 5,000,000
15. A depository bank under Foreign Currency Deposit Business expenses, China 1,500,000
System has the following income from foreign Interest income, Metrobank, 300,000
currency transactions (Exchange Rate $1=P45): Philippines
Interest income, Shanghai 100,000
From Nonresidents $5,000 Banking Corporation, China
From residents $3,000 Rent income, net of 5% 190,000
From Philippine National withholding tax
Bank $2,000
How much is the income tax payable?
How much is the final withholding tax applicable on a. P3,540,000 c. P3,440,000
the above income? b. P3,530,000 d. P2,480,000
a. P22,500 c. P9,000
b. P13,500 d. P45,000 24. PHL Corporation, a domestic corporation in its 3 rd
year of operation, has the following records of
16. Interest income of a domestic commercial bank income and expenses during the year:
derived from a peso loan to a domestic corporation
in 2018 is: Gross income, net of 1% P1,435,500
a. Subject to the 30% income tax based on its withholding tax
net taxable income Expenses 790,600
b. Subject to the 20% final withholding tax. Rent income, net of 5% withholding 136,800
c. Subject to the 15% final withholding tax. tax
d. Subject to 10% final withholding tax. Dividend from domestic corporation 25,000
Royalty, gross of tax 80,000
17. As a rule, there is no income tax if there is no Interest from bank deposit with 12,000
income. Which of the following is the exception? PNB, net of tax
a. Capital Gains Tax on sale of land and/or
building
b. Capital Gains Tax on sale of share of stock not The income tax payable is -
traded in the local stock exchange a. P241,020 c. P260,020
c. Tax on passive income b. P219,320 d. P238,320
d. Regular Corporate Income Tax
25. The total final taxes is -
18. Alpha Inc. sold its vacant lot to Omega Corp. for a. P19,000 c. P33,250
P10,000,000 which it acquired at a cost of b. P21,500 d. P3,000
P5,000,000. The fair market value of the said
property per tax declaration is P12,000,000, while 26. A domestic corporation was registered with the BIR
its zonal value is P15,000,000. How much is the on November 1, 2008. What year would the first
income tax applicable on the transaction? MCIT will be imposed on such corporation?
a. P900,000 c. P600,000 a. 2009 c. 2011
b. P720,000 d. P1,500,000 b. 2010 d. 2012

19. Based on the preceding number, if the buyer of the 27. If the taxpayer is a seller of services, which of the
property is the Philippine Government or one of its following shall not form part of its cost of services?
owned or controlled corporations, what type of a. Salaries and supplies
income tax will apply on the transaction? b. Employee benefits
a. Basic income tax c. Depreciation and rental expenses
b. Capital gains tax d. Interest expense
c. Either “a” or “b” at the option of the seller
d. Either “a” or “b” at the option of the buyer 28. MCIT shall apply to which of the following domestic
corporations?
20. In 2017, East Star Inc., a domestic corporation, I. Proprietary educational institutions
sold shares of stock for P250,000. The shares, II. Non-profit hospitals
acquired in 2010 at a cost of P100,000, were held III. Depository banks under the expanded foreign
as investment, and were sold directly to a buyer. currency deposit system (FCDS) on income
How much was the capital gains tax due? from foreign currency transactions with local
a. P15,000 c. P22,500 commercial banks
b. P10,000 d. P45,000 IV. Firms that are taxed under a special income
tax regime
21. Assume the shares were sold in 2018, the capital a. I and II only c. All of the above
gains tax due is: b. III and IV only d. None of the above
a. P15,000 c. P22,500
b. P10,000 d. P45,000 29. A PEZA registered enterprise has a registered and
an unregistered activity. The MCIT shall apply to:
22. Assume the shares were sold in 2018 and East a. Registered activity
Star Inc. is a foreign corporation, the capital gains b. Unregistered activity
tax due is: c. Both activities
a. P15,000 c. P22,500 d. Neither registered or unregistered activity
b. P10,000 d. P45,000
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 30. The following information were taken from the b) Excess tax credits from 2016 amounts to
records of Adobong Mani Inc., a domestic P20,000.
corporation already in its fifth year of operation:
34. How much was the income tax payable for the first
Gross profit from sales P3,100,000 quarter?
Capital gain on sale directly to a 100,000 a. P200,000 c. P120,000
buyer of shares in a domestic b. P160,000 d. P80,000
corporation
Dividend from: 35. How much was the income tax payable for the
Domestic corporation 20,000 second quarter?
Resident foreign corporation 10,000 a. P660,000 c. P200,000
Interest on: b. P460,00 d. P160,000
Bank deposit 20,000
Trade receivables 50,000 36. How much was the income tax payable for the
Business expenses 2,100,000 third quarter?
Income tax withheld 115,000 a. P860,000 c. P600,000
Quarterly income tax payments 160,000 b. P120,000 d. P140,000
Income tax payable prior year (10,000)
37. How much was the annual income tax payable?
The income tax payable at the end of the year: a. P1,260,000 c. P230,000
a. P318,000 c. P43,000 b. P390,000 d. P930,000
b. P63,200 d. P33,000
38. A domestic corporation, already in its 5th year of
31. Short Time Services Inc., registered with BIR in operation as of 2012, provided the following data:
2012, has the following data for the year 2018: 2015 2016 2017
Gross Sales P2,040,000 P2,800,000 P3,000,000
Gross revenue P1,150,000 Sales returns 40,000 100,000 -
Discounts 100,000 Cost of goods 1,000,000 700,000 1,500,000
Allowances 150,000 sold
Salaries of personnel directly 300,000 Business 950,000 2,100,000 1,200,000
involved in rendering service expenses
Salaries of administrative personnel 100,000
Fees of consultants directly involved 50,000 The income tax payable for taxable year 2017 was:
in rendering service a. P15,000 c. P60,000
Rental of equipment used in 70,000 b. P20,000 d. P55,000
rendering service
Rental of office space for use of 50,000 39. One of the following is not a ground for exemption
administrative personnel from MCIT:
Other operating expenses 420,000 a. Prolonged labor dispute
b. Force majeure problems
How much was the income tax due and payable? c. Legitimate business reverse
a. P27,000 c. P9,600 d. Law suits filed by the company
b. P6,600 d. Zero
40. The 15% gross income tax is applicable to:
32. Delta Corporation, already in its 5th year of A. B. C. D.
operation as of 2018, has the following data: Proprietary True True False False
educational
2017 2018 institutions
Sales 1,700,000 2,300,000 Resident foreign True True True False
Cost of Sales 1,050,000 1,425,000 corporations
Operating Expenses 675,000 480,000 International True False False False
carriers where
The income tax payable in 2017 was – reciprocity is
a. P13,000 c. P35,000 applicable
b. P10,500 d. nil
41. Which of the following statements is incorrect?
33. The income tax payable in 2017 is – a. Resident foreign corporations are subject to
a. P111,000 c. P98,000 income tax based on net income from sources
b. P17,500 d. nil within the Philippines.
b. Domestic corporations are subject to income
Next four (4) questions are based on the following: Jolly tax based on net income from all sources.
Jeep Corporation has the following information for the c. Nonresident foreign corporations are subject to
taxable year 2017: income tax based on gross income from
sources within the Philippines.
QUARTER RCIT MCIT Creditable d. Private educational corporations 'are subject to
Withholding income tax based on the net income from
Tax sources within the Philippines at the tax rate of
First 200,000 160,000 40,000 10%.
Second 240,000 500,000 60,000
Third 500,000 150,000 80,000 42. If the gross income from unrelated activity exceeds
Fourth 300,000 200,000 70,000 50% of the total gross income derived by any
private educational institution, the rate shall be
Additional Information: 30% based on the entire taxable income. This
a) Excess MCIT for 2016, P60,000; principle is known as
a. Constructive receipt
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 b. Tax benefit rule Dividend income:
c. End result doctrine Domestic corporation 100,000
d. Predominance test Foreign corporation 50,000
Rent income (net) 5,700,000
43. What is the rule on the taxability of income that a Operating expenses 4,125,000
government educational institution derives from its Quarterly income tax payments 250,000
school operations? Such income is
a. Subject to 10% tax on its net taxable income The income tax payable of the school is:
as if it is a proprietary educational institution. a. P42,500 c. P1,227,500
b. Exempt from income taxation if it is actually, b. P592,500 d. P1,777,500
directly, and exclusively used for educational
purposes. 48. Bank of Recto, a domestic corporation has the
c. Subject to the ordinary income tax rates with following data for the taxable year 2017:
respect to income derived from educational Regular Banking Unit:
activities. Interest Income from loans P10,000,000
d. Exempt from income taxation in the same Interest Income from peso deposit 1,000,000
manner as non-stock and non-profit with Bank of Philippine Islands
educational institutions. Dividend Income from various 1,500,000
domestic corporations
44. Which of the following organizations shall be
exempted from income tax for income earned by Foreign Currency Deposit Unit:
them as such? (Exchange Rate $1=P40)
a. Non-stock corporation or association organized Interest Income from loans to $50,000
and operated exclusively for religious, residents
charitable, scientific, athletic or cultural Interest Income from loans to $12,500
purposes, or for the rehabilitation of veterans, nonresidents
but part of its net income or asset shall belong
or inure to the benefit of any member, Additional Information: The bank has total
organizer or any specific person. operating expenses of P12,000,000.
b. Mutual savings bank having capital stock How much was the normal income tax for the
represented by shares and cooperative bank year?
with capital stock organized and operated not a. P600,000 c. P500,000
for mutual purposes and with profit. b. P400,000 d. nil
c. Business league, chamber or commerce, or
board of trade, not organized for profit and no 49. A tax imposed in the nature of a penalty to the
part of the net income of which inures to the corporation to prevent the scheme of accumulating
benefit of any private stockholder or individual. income rather than distribute the same to the
d. Farmers, fruit growers, or like association stockholders for the purpose of avoiding tax on
organized and operated as the central dividends.
distributor of all agricultural products in a a. Minimum corporate income tax
particular region. b. Optional corporate income tax
c. Improperly accumulated earnings tax
45. SCHOOL BUKOL University is a proprietary d. Capital gains tax
educational institution. It had the following
selected information for the taxable year 2016: 50. The Improperly Accumulated Earnings Tax shall
Tuition fees P12,800,000 not apply to the following, except?
Miscellaneous fees 1,800,000 a. Banks and other non-bank financial
Interest on bank deposits 12,300 intermediaries
Rent income 350,000 b. Insurance companies
Salaries and bonuses, all 7,500,000 c. Publicly-held corporation
personnel d. Closely-held corporation
Other operating expenses 3,500,000
Quarterly income tax payments 48,000 51. It is a test used in determining the reasonable
needs of a business to justify the accumulation of
Additional School Building was built and finished on earnings which will exempt the corporation from
April 1, 2016 at a cost of P2,000,000 with a paying Improperly accumulated earnings tax:
depreciable life of 50 years. a. Urgency test c. Immediacy test
b. Reasonable needs test d. Control test
Assuming the University opted to claim the cost of
construction as an outright expense, the income 52. JCU Corporation, a domestic corporation had the
tax payable was: following data for taxable year 2016:
a. P344,000 c. P576,000 Sales P5,000,000
b. P147,000 d. P160,000 Cost of goods sold 2,000,000
General selling and administrative
46. Based on the preceding number, but assuming the expenses 500,000
University opted to capitalize the cost of building Interest income from Philippine bank
construction, the income tax payable was: deposit 100,000
a. P344,000 c. P576,000 Rental income (net of 5% withholding
b. P147,000 d. P160,000 tax) 190,000
Dividend Income:
47. Pera Pera College, an educational institution From domestic corporation 60,000
provided the following data for the current year: From foreign corporation 50,000
Income from tuition fees P3,000,000 Capital gains from sale of domestic
School miscellaneous fees 250,000 shares of stocks sold Directly to
Income from canteen operations 750,000 buyer 75,000
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 Dividend declared and paid during the 58. How much is the income tax payable for 2017
year 500,000 assuming the Philippines and U.S. entered into a
Retained earnings, 12/31/2015 1,000,000 tax treaty subjecting international carriers to 1%
Par Value of outstanding shares, 500,000 income tax rate?
12/31/2016 a. P80,000 c. P68,000
Appropriation for future plant 800,000 b. P60,000 d. P155,000
expansion
59. How much is the income tax payable for 2017
The income tax payable was: assuming that Philippine carriers are exempt from
a. P825,000 c. P899,200 payment of income tax in the United States?
b. P815,000 d. P819,200 a. P60,000 c. P125,000
b. P80,000 d. P0
53. Based on the foregoing problem, the Improperly
accumulated earnings tax was: 60. The common carrier’s tax of Pan Pacific for 2017 is
a. P208,125 c. P213,625 a. P36,000 c. P125,000
b. P108,125 d. P105,125 b. P60,000 d. P0

54. Peshcov Corporation, an entity organized under 61. Banko de Amro, an offshore banking unit, derived
the laws of Russia, is engage in business in the income from its foreign currency transactions (FCT)
Philippines for 10 years already. During 2017, its and peso transactions (PT) in the Philippines. The
income and expenses are shown below: applicable taxes on such incomes shall be taxed as:
A. B. C. D.
Philippines Russia FCT with a Exempt 10% 10% 30%
Gross income P20,000,000 P30,000,000 domestic corp. FWT FWT RCIT
Business expenses 19,000,000 21,000,000 FCT with an Exempt Exempt 10% Exempt
Interest income 500,000 RFC FWT
from dollar PT with a Exempt 10% 30% 30%
deposit, domestic corp. FWT RCIT RCIT
Yield on money 1,000,000
market placement 62. An offshore banking unit, already in its 7th year in the
Philippines, has the following data in its income and
How much is the income tax payable? expenses for the year 2014:
a. P3,000,000 c. P1,000,000
b. P400,000 d. P300,000 Foreign currency transactions
with ($1=P40):
55. The TY Corporation is an international carrier doing Non-residents $45,000
business in the Philippines. Its taxable base for Local banks 30,000
income tax purposes is – Branches of foreign banks 25,000
a. Gross Philippine Billings Another OBU 12,500
b. Gross Philippine Billings minus deductible Other residents (Interest 20,000
expenses Income)
c. Regular rate of 30% of its net taxable income
d. Allocation of income from sources within and Other income:
without the Philippines, as well as expenses. Rent income 1,000,000
Miscellaneous income 500,000
56. In order for an international carrier to qualify for
exemption on the basis of reciprocity, what type of Operating Expenses 2,380,000
tax shall be exempted as well by the its home
country? How much is the total income tax for the year?
a. Income tax a. P80,000 c. P372,500
b. Business Tax b. P292,500 d. P0
c. Transfer tax
d. Any of the choices 63. Which of the following shall pay a tax of ten percent
(10%) of their taxable income?
Use the following data for the next four (4) questions: I - Regional or area headquarters
Pacific Airlines, an international air carrier showed the II - Regional operating headquarters
following gross receipts for 2017: a. Both I and II
Point of Origin Destination Gross receipts b. Neither I nor II
Philippines U.S.A. 8,000,000 c. I only
U.S.A. Russia 4,000,000 d. II only
U.S.A Philippines 3,750,000
Spain Philippines 2,100,000 64. If a branch of a foreign corp. in the Philippines remits
passive income earned in the Philippines to the head
Additional information: office, what is the applicable tax on the said
 Forty percent (40%) of the shipments from the transaction?
Philippines to the United States were later shipped a. Subject to 30% final withholding tax
to the United Kingdom. b. Subject to 12% creditable withholding VAT
 25% of all its revenues were from transport of c. Subject to 15% branch profit remittances tax
cargoes and goods. d. Exempt from branch profit remittances tax

57. The income tax payable for 2017 is 65. Which of the following corporations shall pay a tax
a. P127,500 c. P170,000 equal to thirty percent (30%) of the gross income
b. P150,000 d. P200,000 received during each taxable year from all sources
within the Philippines?
a. Domestic corporation
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 b. Resident foreign corporation 71. Assuming further that the Corp. opted to claim as part
c. Nonresident foreign corporation of allowable deduction the income tax paid abroad,
d. None of the choices how much was the income tax payable?
a. P84,375 c. P117,000
66. Teri Yaki Corp., a Japanese Corp. having no business b. P166,000 d. P375,000
in the Philippines, is engage in ship building. It leases
some of its newly constructed ships to Super Fairy 72. How much was the income tax payable if the
Inc., a Philippine Carrier. What income tax rate will Corporation is a resident foreign (ignore sale of vacant
apply to the rental payments to the lessor? lot)?
a. 30% Basic Income Tax a. P90,000 c. P117,000
b. 25% Final Withholding Tax b. P166,000 d. P375,000
c. 7.5% Final Withholding Tax
d. 4.5% Final Withholding Tax 73. Based on the preceding number, how much was the
total income tax on all income?
67. Rentals, charters and other fees derived by a non- a. P132,000 c. P90,000
resident lessor of aircraft, machineries and other b. P522,000 d. P505,000
equipment in the Philippines shall be subject to a tax
of: 74. Assuming that the taxpayer is a nonresident foreign
a. Twenty-five percent (25%) and there is tax sparing, how much was the income
b. Seven and one-half percent (7 ½%) tax on all income (ignore sale of vacant lot)?
c. Four and one-half percent (4 ½%) of gross a. P337,500 c. P378,500
rentals or fees b. P352,500 d. P363,500
d. Two and one-half percent (2 ½%) of gross
income 75. Based on the preceding number, but assuming there
was no tax sparing, how much was the total income
68. A cinematographic film owner, lessor or distributor tax on all income?
shall pay a tax, based on its gross income from all a. P337,500 c. P378,500
sources within the Philippines, of: b. P352,500 d. P363,500
a. Twenty-five percent (25%)
b. Seven and one-half percent (7 ½%) 76. The following data were taken from the financial
c. Four and one-half percent (4 ½%) of gross statements of RLS Corporation, a domestic
rentals or fees corporation, for 2017:
d. Two and one-half percent (2 ½%) of gross
income Philippines Japan
Gross sales P950,000 P2,000,000
Next seven (7) questions are based on the following: Sales returns 25,000
Global Corporation, a corporation engaged in business Cost of goods sold 425,000 300,000
worldwide, is in its 3rd year of operation. The following data Interest income from
were disclosed: trade receivables 10,000 50,000
Interest income from
Gross Income, Philippines P 1,000,000 bank deposits 20,000
Expenses, Philippines 700,000 Dividend income from
Gross Income, Abroad 500,000 domestic corporation 15,000
Expenses, Abroad 350,000 Royalty income 20,000
Interest on peso bank 50,000 Operating expenses 250,000 300,000
deposit Income from deposit
Interest from foreign 80,000 substitutes 35,000 100,000
currency bank deposit
Royalties from books 75,000 Its income tax payable is:
Dividend income from 100,000 a. P640,000 c. P680,000
another Domestic Corp. b. P600,000 d. P543,000
Income Tax Paid Abroad 60,000
77. Its final tax on passive income is:
Additional Information: a. P15,000 c. P4,000
a) The Corporation sold its invested stocks in a domestic b. P8,000 d. P11,000
corporation directly to the buyer for P240,000. The
cost of such shares is P80,000. 78. Based on the above problem, its total income tax on all
b) It sold a vacant lot, booked as investment property income if it is a resident foreign corporation:
held for capital appreciation, for P2,800,000. Fair a. P60,200 c. P41,000
Market Value per Tax Declaration is P3,000,000 while b. P93,000 d. P28,000
zonal value is P3,300,000. The lot was acquired for
P1,500,000. 79. Using the same information above, except that the
entity is a regional operating headquarter of a multi-
69. How much was the income tax payable if the national company, how much is its total income tax on
Corporation is domestic? all income?
a. P90,000 c. P117,000 a. P60,200 c. P41,000
b. P166,000 d. P375,000 b. P93,000 d. P28,000

70. Based on the preceding number, how much was the 80. A corporation has the following data for 2016:
income tax expense? Gross income, Phil. P1,000,000
a. P84,375 c. P117,000 Gross income, USA 500,000
b. P166,000 d. P375,000 Gross income, Japan 500,000
Expenses, Phil. 300,000
Expenses, USA 200,000
Expenses, Japan 100,000
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 Other income:
Dividend from San Miguel
Corp. 70,000
Dividend from Ford Motors,
USA 120,000
Gain on sale of San Miguel
shares directly to buyers 150,000
Royalties, Phils. 50,000
Royalties, USA 100,000
Interest from receivables in the 60,000
Philippines
Rent Income, land in USA 250,000
Rent income, Building in the 100,000
Philippines

The Company also sold a land classified as capital

asset for P2,000,000. The cost of the land is
P1,000,000 while its Zonal Value is P3,000,000.

Its income tax on all income as a domestic

corporation is:
a. P578,000 c. P963,600
b. P683,500 d. P809,000

81. Based on the above problem, its income tax on all

income if it is a resident foreign corporation (ignore
sale of land):
a. P278,000 c. P663,600
b. P383,500 d. P509,000

82. And if it is a non-resident foreign corporation and there

is tax sparing, its income tax on all income is (ignore
sale of land):
a. P378,000 c. P663,600
b. P383,500 d. P509,000

**done**

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