Reference no: EM132600195

Questions -

Q1. Which of the following is a taxable income?

A. Income from qualified pension plan

B. Compensation for personal injuries

C. Moral damages

D. Interest on moral damages

Q2. One of the following is a taxable income

A. Compensation for injuries and sickness

B. Income derived from gifts, bequest and devises

C. Proceeds of life insurance

D. Amount received as returns of premium

Q3. Which among the following are examples of income that are exempt from income tax by virtue of special laws?

A. Payments of benefits due or to become due under United States Veterans Administration are not included in the gross income.

B. Benefits received from or enjoyed under the Social Security System (SSS) are not included in the gross income

C. Benefits received from the GSIS including retirement gratuity received by government officials and employees are not included in the gross income.

D. All of the above.

Q4. The type of income subject to Philippines income tax are as follows, except

A. Compensation income earned by an employees

B. Income from the practice of profession

C. Income from sale, through the stock exchange, of shares of stock of a domestic corporation

D. Capital gains from dealings in capital assets

Q5. The following are corporations exempt from income tax, except

A. Non-stock and non-profit educational institutions

B. Government owned and controlled corporations

C. CDA registered cooperatives

D. Government educational institutions

Q6. CDA registered cooperatives are income tax exempt, except

A. Income from business transacted with non-members

B. Interest income from depository bank

C. Income from business transacted with members

D. Interest income earned from member's loan

Q7. A farmer under accrual basis has the following data for the year:

Beginning inventory:

Livestock and farm products raised in the farm P 60,000

Livestock and farm products purchased the previous year 30,000

Ending inventory:

Livestock and farm products raised in the farm 100,000

Livestock and farm products purchased 80,000

Sales of livestock and farm products raised and purchased 120,000

Cost of livestock and farm products purchased during the year 100,000

Miscellaneous receipts:

Gain on sale of work, breeding or dairy animals 30,000

Gain on sale of farm equipment and machinery 10,000

Hire of tractor 20,000

Hire of teams like hire of carabaos or horses 6,000

Others 4,000

How much is his gross income?

a. P 370,000

b. P 270,000

c. P 180,000

d. None of the choices