#BUSINESS LAW AND TAXATION CPA REVIEWER PDF DOWNLOAD PROFESSIONAL#

#BUSINESS LAW AND TAXATION CPA REVIEWER PDF DOWNLOAD PROFESSIONAL#

Compensation income and business professional income are added together in arriving at gross income. Capital gains are excluded in determining gross income. Separate graduated rates are imposed on different types of income. All types of income are added together to arrive at gross income. вЂњSchedular system of income taxationвЂќ means: a. Gross income is reported partially in each taxable year in proportion to collections made in such period as it bears to the total contract price refers to: a. No recognized gain because the land was in exchange of stocks of the corporation. dela Cruz became the majority stockholders. No recognized gain because the land was in exchange or purely stocks and Mr. The recognized gain is the difference between the par value of the stock and the fair market value of the land. The recognized gain is the difference between the fair market value of the shares of stocks and the cost of the land. As a result of the transfer he became the major stockholder of the corporation. Juan dela Cruz transferred his commercial land with a cost of P500,000 but with a fair market value of P 750,000 to JDC Corporation in exchange of the stocks of the corporations with par value of P1,000,000. 1st advice correct, 2nd advice are wrong. 2nd advise: The proceeds of life insurance would have to be declared for the estate tax purposes if the designation of the beneficiary was irrevocable, otherwise it need not be declared. 1st advice: The proceeds of life insurance paid to the beneficiary upon the death of the insured are exempt from income tax and need not be declared for income tax purposes. She asks you whether she should declare the amount for income taxes purposes or for estate tax purposes. The widow of your best friend has just been paid P1,000,000 on account of life insurance policy of the decease husband. 1st answer is wrong, 2nd answer is correct.

1st answer is correct, 2nd answer is wrong. 2nd answer: No, if the RDE was forced by the corporation to retire. Can the BIR subject the P1,000,000 retirement gratuity to income tax? 1st answer: Yes, if the retirement gratuity was paid based on a reasonable pension plan were RDE was 50 years old and has served the corporation. RDE was retired by his employer corporation in 2003 and paid P1,000,000 as a retirement gratuity without any deduction for withholding tax. Non-resident alien not engage in trade or business in the Philippines whose country allows personal exemption to Filipinos who are not residing but are deriving income from said country. Resident alien deriving income from a foreign country. Non-resident alien who shall come to the Philippines and stay therein for an aggregate period more than 180 days. Non-resident citizen with respect to his income derived outside the Philippines. Which of the following taxpayers whose personal exemption is subject to the law on reciprocity under the Tax Code? a.

The tax may be paid in installment if the initial payments do not exceed 25% of the selling price. The installment payment of the tax should be made within 30 days from receipt of each installment payment on the selling price. The term вЂњinitial paymentвЂќ is synonymous to вЂњdown paymentвЂќ. The tax should be paid, if in one lump sum, within 30 days from the date of sale. On capital gain tax on real property, which of the following statements is not true? a. Non-resident alien engage in trade or business in the Philippines. Non-resident alien not engage in trades or business in the Philippines. The following, except one, may claim personal exemptions: a. Gains from sales of assets not stock in trade. Personal exemption.ДЄ feature of ordinary gains as distinguished from capital gains: a. 1.ДЄn exemption allowed to a taxpayer that has qualified legitimate, and/or recognized or legally adopted children: a. INCOME TAXATION OF INDIVIDUALS & CORPORATION Instruction: Select the best answer to each of the following questions.

Business law and taxation cpa reviewer pdf download