Week 4 Pracquiz PDF

7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Week 4: Practice Quiz (Module 4)

Due Jul 19 at 23:59 Points 45 Questions 30
Available Jul 12 at 0:00 - Jul 19 at 23:59 8 days Time Limit 60 Minutes
Allowed Attempts Unlimited
Instructions
Practice Quiz Guidelines
This practice quiz covers material from the textbook readings within Module 4 (Introduction to Income
Tax). You are allowed multiple attempts to complete the quiz. As this is just a practice quiz, your highest
score will NOT be entered into the gradebook.
You may use class materials (including the textbook) during the quiz.
Technical Support
Need help using Canvas Quizzes? If so, please review the following guide: Canvas Student Guide -
Quizzes (https://community.canvaslms.com/docs/DOC-10701#jive_content_id_Quizzes)
Take the Quiz Again
Attempt History
Attempt Time Score
LATEST Attempt 1 46 minutes 25 out of 45
 Correct answers are hidden.
Submitted Jul 19 at 23:10
Incorrect
Question 1 0 / 1 pts
Course Chat 
https://dlsu.instructure.com/courses/66864/quizzes/139444 1/16
A non-resident citizen is a citizen of the Philippines who establishes to the

satisfaction of the Commissioner of Immigration the fact of his physical
presence abroad with definite intention to reside therein.
True
False
Incorrect
A non-resident citizen who stayed in the Philippines for an aggregate

period of more than 180 days during the year is deemed engaged in trade
or business. Send
True
False
Incorrect
Overseas contract worker is exempted from income tax on income earned

outside the Philippines provided he stayed outside the Philippines for at
least 183 days.
True
False
Incorrect
All non-resident aliens and non-resident foreign corporations are being

taxed in the Philippines at gross.
True
False
General professional partnerships are exempted from income and

business taxes.
True
False
General professional partnerships are subject to business taxes.
Business partnerships are subject to income tax just like corporations.
True
False
Incorrect
The share of a partner in the net income of either general professional

partnership or ordinary partnership is subject to tax.
True
False
Incorrect
A partnership formed by 3 certified public accountants to engage in retail

trade business is exempted from the corporate income tax.
True
False
Aliens employed by regional or area headquarters and regional operating

headquarters of multinational companies are subject to 15% tax on their
gross income received as compensation.
True
False
They are now subject to ordinary or normal income tax.
Incorrect
Total consideration received from the sale of goods represents return on

capital.
True
False
Incorrect
Question 11 0 / 1.5 pts
Which of the following is not taxable as a corporation?
Insurance company
Bank
General business partnership
Joint venture formed for the purpose of undertaking construction projects
Question 12 1.5 / 1.5 pts
There is no taxable income until such income is recognized. Taxable

income is recognized when the
income has been actually received in money or its equivalent.
taxpayer fails to include the income in his income tax return.
transaction that is the source of the income is not yet consummated.
income has been received, either actually or constructively.
An overseas contract worker has rental income from property located in

the Philippines and interest income from his dollar account in Metro Bank.
The rental is subject to normal income tax while the interest income is tax-
exempt.
The rental is subject to normal income tax while the interest income is
subject to final tax.
The rental is subject to final tax while the interest income is subject to
normal income tax.
Both rental and interest are subject to final tax.
Incorrect
Question 14 0 / 1.5 pts
A resident foreign corporation is one that is:
Organized under the laws of a foreign country that has a branch in Makati
City, Philippines.
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 a foreign country that engages business

outside the Philippines.
Organized under the laws of a foreign country that has a local subsidiary.
Incorrect Question 15 0 / 1.5 pts
Kratos, a Greek, arrived in the Philippines on January 1, 2018 and

continued to live and engage in business in the Philippines. He went on a
tour of Southeast Asia from March 1 to November 5, 2018. He returned to
the Philippines on November 6, 2018 and stayed until March 15, 2019
when he returned to Greece. He earned during his stay in the Philippines
a gross income of P3 million from his investments in the country. For the
year 2018, the taxable status of Kratus is that of
a resident alien not engaged in trade or business in the Philippines.
a resident alien engaged in trade or business in the Philippines.
a non-resident alien engaged in trade or business in the Philippines.
a non-resident alien not engaged in trade or business in the Philippines.
Which of the following statements is wrong?
A co-ownership where the activities of the co-owners are limited to the

preservation of the property and collection of income from property is not
taxable as corporation.
A joint venture for undertaking construction projects is not taxable as a

corporation.
A general partnership formed by professionals to engage in business is not

taxable as a corporation.
A consortium for energy operation pursuant to an operating consortium

agreement under a service contract with the government is not taxable as
a corporation.
Federico, a Filipino citizen, migrated to the United States some six years
ago and got a permanent resident status or green card. He should pay his
Philippine income taxes on
dividends received from a foreign corporation whose gross income was

derived solely from foreign sources.
the gains derived from the sale in the New York Stock Exchange of shares
of stock in PLDT, a Philippine corporation.
the gains derived from the sale in California, U.S.A. of jewelry he

purchased in the Philippines.
the proceeds he received from a Philippine insurance company as the sole

beneficiary of life insurance taken by his father who died recently.
Aplets Corporation is registered under the laws of the Virgin Islands. It has
extensive operations in Southeast Asia. In the Philippines, its products are
imported and sold at a mark-up by its exclusive distributor, Kim's Trading,
Inc. The BIR compiled a record of all the imports of Kim from Aplets and
imposed a tax on Aplets net income derived from its exports to Kim. Is the
BIR correct?
No. The tax should have been computed on the basis of gross revenues
and not net income.
Yes. Aplets is a non-resident foreign corporation engaged in trade or

business in the Philippines.
No. Aplets is a non-resident foreign corporation not engaged in trade or

business in the Philippines.
Yes. Aplets is doing business in the Philippines through its exclusive

distributor Kim's Trading, Inc.
In 2018, Mr. Reyes sent his sister Juanita $1,000 via a telegraphic transfer
through the Bank of PI. The bank's remittance clerk made a mistake and
credited Juanita with $1,000,000 which she promptly withdrew. The bank
demanded the return of the mistakenly credited excess, but Helen
refused. The BIR entered the picture and investigated Juanita. Would the
BIR be correct if it determines that Helen earned taxable income under
these facts?
No, the funds in excess of $1,000 were in effect donated to her.
No, it was not her fault that the funds in excess of $1,000 were credited to
her.
Yes, income is income regardless of the source.
No, she had no income because she had no right to the mistakenly
credited funds.
Rolando deposited P5 million in a Manila bank. After three months, it

earned interest amounting to P5,000. Which of the following is true?
Rolando received P5,005,000 return of capital.
Rolando received P5,000,000 return on capital.
Rolando earned P5,000 return on capital.
Rolando earned P5,000 return of capital.
For Nos. 21 - 30
The taxpayer had the following data at the end of the current year:
Manila Seoul Beijing

Gross income 4,000,000 4,000,000 8,000,000
Business
2,600,000 1,200,000 5,000,000
expenses
Non-business
1,000,000 800,000 1,000,000
expenses
Determine the taxable income if the taxpayer is a resident citizen.
7,200,000
Resident Citizen
Gross Income 16,000,000

Less: Business
8,800,000
Expenses
Taxable Income 7,200,000
Income Tax 2,154,000
Tax Rate/s Progressive Rates
Determine the taxable income if the taxpayer is a resident alien.
1,400,000
Resident Alien

Less: Business
2,600,000
Expenses
Income Tax 310,000
Determine the taxable income if the taxpayer is a non-resident alien not

engaged in trade or business.
4,000,000
Not Engaged In Trade or

Non-Resident Alien
Business
Less: Business
0
Expenses
Tax Rate/s 25%
Incorrect
Determine the taxable income if the taxpayer is a resident foreign

corporation.
1,800,000
Determine the taxable income if the taxpayer is a domestic business

partnership.
7,200,000
Resident Citizen

Less: Business
8,800,000
Expenses
Tax Rate/s 25%
Determine the personal income tax if the taxpayer is a non-resident

citizen.
310,000
Non-Resident
Citizen
Less: Business
2,600,000
Expenses
Income Tax 310,000
Determine the income tax if the taxpayer is a non-resident alien engaged

in trade or business.
310,000
Engaged In Trade or
Non-Resident Alien
Business
Less: Business
2,600,000
Expenses
Income Tax 310,000
Determine the income tax if the taxpayer is a domestic corporation.
1,800,000
Domestic
Corporation
Less: Business
8,800,000
Expenses
Tax Rate/s 25%
Determine the income tax if the taxpayer is a non-resident foreign

corporation.
1,000,000
Non-Resident
Foreign Corp.
Less: Business
0
Expenses
Tax Rate/s 25%
Incorrect
Determine the income tax if the taxpayer is a trust.

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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION

Week 4: Practice Quiz (Module 4)

Take the Quiz Again

 Correct answers are hidden.

Submitted Jul 19 at 23:10

A non-resident citizen is a citizen of the Philippines who establishes to the

A non-resident citizen who stayed in the Philippines for an aggregate

Overseas contract worker is exempted from income tax on income earned

All non-resident aliens and non-resident foreign corporations are being

General professional partnerships are exempted from income and

General professional partnerships are subject to business taxes.

Business partnerships are subject to income tax just like corporations.

The share of a partner in the net income of either general professional

A partnership formed by 3 certified public accountants to engage in retail

Aliens employed by regional or area headquarters and regional operating

They are now subject to ordinary or normal income tax.

Total consideration received from the sale of goods represents return on

Which of the following is not taxable as a corporation?

General business partnership

Joint venture formed for the purpose of undertaking construction projects

Question 12 1.5 / 1.5 pts

There is no taxable income until such income is recognized. Taxable

income has been actually received in money or its equivalent.

taxpayer fails to include the income in his income tax return.

transaction that is the source of the income is not yet consummated.

income has been received, either actually or constructively.

Question 13 1.5 / 1.5 pts

An overseas contract worker has rental income from property located in

Both rental and interest are subject to final tax.

A resident foreign corporation is one that is:

Organized under the laws of a foreign country that sets up a regional

Organized under the laws of a foreign country that engages business

Incorrect Question 15 0 / 1.5 pts

Kratos, a Greek, arrived in the Philippines on January 1, 2018 and

a resident alien not engaged in trade or business in the Philippines.

a resident alien engaged in trade or business in the Philippines.

a non-resident alien engaged in trade or business in the Philippines.

a non-resident alien not engaged in trade or business in the Philippines.

Incorrect Question 16 0 / 1.5 pts

Which of the following statements is wrong?

A co-ownership where the activities of the co-owners are limited to the

A joint venture for undertaking construction projects is not taxable as a

A general partnership formed by professionals to engage in business is not

A consortium for energy operation pursuant to an operating consortium

Question 17 1.5 / 1.5 pts

dividends received from a foreign corporation whose gross income was

the gains derived from the sale in California, U.S.A. of jewelry he

the proceeds he received from a Philippine insurance company as the sole

Incorrect Question 18 0 / 1.5 pts

Yes. Aplets is a non-resident foreign corporation engaged in trade or

No. Aplets is a non-resident foreign corporation not engaged in trade or

Yes. Aplets is doing business in the Philippines through its exclusive

Question 19 1.5 / 1.5 pts

No, the funds in excess of $1,000 were in effect donated to her.

Yes, income is income regardless of the source.

Incorrect Question 20 0 / 1.5 pts

Rolando deposited P5 million in a Manila bank. After three months, it

Rolando received P5,005,000 return of capital.

Rolando received P5,000,000 return on capital.