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.
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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
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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
Question 2 0 / 1 pts
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
Question 3 0 / 1 pts
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
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Incorrect
Question 4 0 / 1 pts
All non-resident aliens and non-resident foreign corporations are being
taxed in the Philippines at gross.
True
False
Question 5 1 / 1 pts
General professional partnerships are exempted from income and
business taxes.
True
False
General professional partnerships are subject to business taxes.
Question 6 1 / 1 pts
Business partnerships are subject to income tax just like corporations.
True
False
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Incorrect
Question 7 0 / 1 pts
The share of a partner in the net income of either general professional
partnership or ordinary partnership is subject to tax.
True
False
Incorrect
Question 8 0 / 1 pts
A partnership formed by 3 certified public accountants to engage in retail
trade business is exempted from the corporate income tax.
True
False
Question 9 1 / 1 pts
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Incorrect
Question 10 0 / 1 pts
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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.
Incorrect Question 16 0 / 1.5 pts
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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.
Question 17 1.5 / 1.5 pts
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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.
Incorrect Question 18 0 / 1.5 pts
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Question 19 1.5 / 1.5 pts
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.
Incorrect Question 20 0 / 1.5 pts
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.
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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
Question 21 2 / 2 pts
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
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Question 22 2 / 2 pts
Determine the taxable income if the taxpayer is a resident alien.
1,400,000
Resident Alien
Gross Income 4,000,000
Less: Business
2,600,000
Expenses
Taxable Income 1,400,000
Income Tax 310,000
Tax Rate/s Progressive Rates
Question 23 2 / 2 pts
Determine the taxable income if the taxpayer is a non-resident alien not
engaged in trade or business.
4,000,000
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Not Engaged In Trade or
Non-Resident Alien
Business
Gross Income 4,000,000
Less: Business
0
Expenses
Taxable Income 4,000,000
Income Tax 1,000,000
Tax Rate/s 25%
Incorrect
Question 24 0 / 2 pts
Determine the taxable income if the taxpayer is a resident foreign
corporation.
1,800,000
Question 25 2 / 2 pts
Determine the taxable income if the taxpayer is a domestic business
partnership.
7,200,000
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Resident Citizen
Gross Income 16,000,000
Less: Business
8,800,000
Expenses
Taxable Income 7,200,000
Income Tax 1,800,000
Tax Rate/s 25%
Question 26 2 / 2 pts
Determine the personal income tax if the taxpayer is a non-resident
citizen.
310,000
Non-Resident
Citizen
Gross Income 4,000,000
Less: Business
2,600,000
Expenses
Taxable Income 1,400,000
Income Tax 310,000
Tax Rate/s Progressive Rates
Question 27 2 / 2 pts
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
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
Gross Income 4,000,000
Less: Business
2,600,000
Expenses
Taxable Income 1,400,000
Income Tax 310,000
Tax Rate/s Progressive Rates
Question 28 2 / 2 pts
Determine the income tax if the taxpayer is a domestic corporation.
1,800,000
Domestic
Corporation
Gross Income 16,000,000
Less: Business
8,800,000
Expenses
Taxable Income 7,200,000
Income Tax 1,800,000
Tax Rate/s 25%
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7/19/2021 Week 4: Practice Quiz (Module 4): [1203_CLWTAXN_K32] - TAXATION
Question 29 2 / 2 pts
Determine the income tax if the taxpayer is a non-resident foreign
corporation.
1,000,000
Non-Resident
Foreign Corp.
Gross Income 4,000,000
Less: Business
0
Expenses
Taxable Income 4,000,000
Income Tax 1,000,000
Tax Rate/s 25%
Incorrect
Question 30 0 / 2 pts
Determine the income tax if the taxpayer is a trust.
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