FINAL PRE-BOARD EXAMINATION FINAL PRE-BOARD EXAMINATION April 21, 2012
April 21, 2012
1.
1. P appointed P appointed A as commisA as commission agension agent to sell t to sell P’s goodP’s goods for P10s for P10,000 cash. ,000 cash. A howeverA however sold the goods on credit for P11,000 without P’s consent. Based on the
sold the goods on credit for P11,000 without P’s consent. Based on the foregoinforegoingg facts, which of the following is correct
facts, which of the following is correct a.
a. P ma! dP ma! demanemand immed immediatdiate pa!e pa!ment oment of P11.f P11.000 c000 cashash ".
". P ma! demanP ma! demand immedid immediate pa!ate pa!ment of P10ment of P10,000 ca,000 cash and cosh and collect P1llect P1,000,000 later
later c.
c. P ma! ratifP ma! ratif! the sale on cr! the sale on credit for Pedit for P11,0011,000 and immed0 and immediateliatel! deman! demandd P10,000 from A
P10,000 from A d.
d. A is entitA is entitled to the led to the e#cess e#cess of P1,000 of P1,000 if P did if P did not ratifnot ratif! the sal! the sale on cre on creditedit 2.
2. A, "ought A, "ought a resida residential housential house and lot e and lot from B from B $eal$ealt! for P2% t! for P2% giving a dogiving a downwn pa!ment of P200,000 and promising to pa! the "alance of
pa!ment of P200,000 and promising to pa! the "alance of P1.&% in 1' !ears inP1.&% in 1' !ears in monthl! instalments of P10,000. After pa!ing (2 installments A
monthl! instalments of P10,000. After pa!ing (2 installments A defaulted in thedefaulted in the pa!ment of su"se)uent instalments. *espit
pa!ment of su"se)uent instalments. *espite the grace period given, he e the grace period given, he was notwas not a"le to
a"le to ma+e an! ma+e an! further pa!ments. Accordingl!, B $further pa!ments. Accordingl!, B $ealt! cancelled the sale.ealt! cancelled the sale. ow much cash surrender value is A entitled to receive
ow much cash surrender value is A entitled to receive a a.. PP''''22,,000000 " ".. PP--,,000000 c c.. PP4422,,000000 d d.. PP''00,,000000 -.
-. hich of hich of the followthe following is ning is not a rot a re)uisite to e)uisite to ma+e ma+e an instrumenan instrument negotia"t negotia"lele a.
a. f addrf addressed to a essed to a drawee, he drawee, he must "e namust "e named or othmed or otherwise inderwise indicated thericated thereinein with reasona"le certaint!.
with reasona"le certaint!. ".
". t must contt must contain an uain an unconditionanconditional promisl promise or ore or order to pder to pa! a sum a! a sum certain incertain in mone!.
mone!. c.
c. herhere the inste the instrumenrument is pa!a"t is pa!a"le to "earle to "earer, the pa!er, the pa!ee must "e naee must "e named ormed or otherwise indicated therein with reasona"le certaint!.
otherwise indicated therein with reasona"le certaint!. d.
d. here here the insthe instrument is trument is pa!a"le to pa!a"le to order, order, the pa!ee the pa!ee must "e must "e named ornamed or otherwise indicated therein with reasona"le certaint!.
otherwise indicated therein with reasona"le certaint!. 4.
4. %, ma+es a %, ma+es a negotia"le prnegotia"le promissor! note pomissor! note pa!a"le to the ora!a"le to the order of Pder of P. P made a. P made a special indorsement to A. A made a )ualied indorsement to B, a minor. special indorsement to A. A made a )ualied indorsement to B, a minor. 3u"se)uent indorsements are from B to , to *, and * to 5, all "! special 3u"se)uent indorsements are from B to , to *, and * to 5, all "! special indorsement, then 5 made a )ualied indorsement to 6. hich of the following indorsement, then 5 made a )ualied indorsement to 6. hich of the following statements is correct
statements is correct a.
a. 7he ind7he indorseorsement madment made "! B transfe "! B transfers titers title to , hencle to , hence B is lia"le as ae B is lia"le as ann indorser.
indorser. ".
". 6 can hol6 can hold 5 lia"d 5 lia"le if % disle if % dishonohonors the irs the instrnstrumentument.. c.
c. n case % n case % dishonors dishonors the instruthe instrument, 6 can ment, 6 can hold all hold all indorsers indorsers lia"le e#lia"le e#cept B.cept B. d.
d. 7he )ualied i7he )ualied indorsers A ndorsers A and 5 and miand 5 and minor B are nor B are not lia"le to 6not lia"le to 6.. '.
'. is waris warrant! e#tenrant! e#tends in fads in favour onl! vour onl! of the immedof the immediate transferiate transferee and to ee and to no otherno other holder
holder a.
a. 8u8ualaliied ed ndndororseserr ".
". 9e9eneneraral l ndndororseserr c.
c. PePersorson negn negotiotiatiating "! deng "! delivliver!er! d.
d. PerPerson nson negotiegotiatinating "! "lg "! "lan+ inan+ indorsdorsementement .
. hich of hich of the followthe following statemening statements pertainits pertaining to trng to treasur! shaeasur! shares is res is corrcorrectect a.
a. 77reasur! reasur! shares shares are nare not part ot part of issuof issued capitaed capital stoc+.l stoc+. ".
". 77reasur! sreasur! shares mahares ma! not "e dispo! not "e disposed of at a prised of at a price lower than ce lower than the par orthe par or issued price even if it is reasona"le and approved "! the "oard of directors. issued price even if it is reasona"le and approved "! the "oard of directors. c.
c. 77reareasur! ssur! sharhares ares are entite entitled to vled to vote.ote. d.
d. 77reasur! sreasur! shares, ohares, once disposed nce disposed of, entitle thof, entitle the purchase purchaser or transfer or transferee theeree the right to dividends.
right to dividends.
1 1
(. hich of the following is not a negotia"le instrument
a. :Pa! to B or order P1,000 in 4 e)ual monthl! instalments.;
7o< = 3gd. A
". :Pa! to B or order P1,000 and de"it m! account thereafter;
7o< = 3gd. A
c. :Pa! to the order of B within months from date the sum of P1,000 at 12> per annum;
7o< = 3gd. A
d. :Pa! to B or "earer P1,000 one !ear after date. f not paid when due, agree to pa! collection and attorne!’s fees;
7o< = 3gd. A
&. older altered the amount of a negotia"le note from P10,000 to P110,000 then negotiated the note to P. As a result,
a. f P is a holder in due course, he can re)uire the ma+er to pa! P110,000. ". f P is not a holder in due course, he can re)uire the ma+er to pa! onl! the
original sum of P10,000.
c. P cannot re)uire the ma+er to pa! "ecause of alteration whether or not he is a holder in due course.
d. f P is a holder for value, he can collect P110,000 from .
. A is a ma+er and B is pa!ee of a negotia"le promissor! note pa!a"le to order. 7here is no valua"le consideration for the note B delivers the instrument to ,
without indorsement, under circumstances that otherwise would have made a holder in due course such as, that did not +now of the a"sence of consideration. %a! recover from A
a. ?es, "ecause A’s personal defense cannot "e used against . ". ?es, "ecause the promissor! note is negotia"le.
c. @o, "ecause A has a real defense which can "e used even against a holder in due course.
d. @o, "ecause ac)uires onl! B’s rights and A can set up against B the defense of a"sence of consideration.
10.7he following statements pertain to a voting trustee, e#cept a. 7he representative ac)uires legal title to the shares. ". t is good onl! for the meeting for which it was intended.
c. t is generall! irrevoca"le and the representative ma! vote even in the presence of the stoc+holder.
d. 7he agreement giving the representative the power to vote must "e dul! notaried and a cop! thereof must "e su"mitted to the 35 to "e eective and enforcea"le.
11.7he articles of incorporation of AB orporation provides for ( directors. n the monthl! meeting of the "oard of directors held on April &, 200, directors B, , * and 5 were present and the following resolutions were approved<
a. A resolution for the purchase of a deliver! truc+ from 5 7rading, a sole proprietorship owned "! 5. B, , * and 5 voted for the resolution.
b. A resolution appointing 7 as the new corporate secretar! where B, , * and 5 voted for the resolution.
hich is correct
a. Both resolutions are valid and do not need stoc+holders approval. ". Both resolutions are valid "ut need stoc+holders approval.
c. $esolution a needs stoc+holder approval. $esolution " is valid.
d. $esolution a is not valid. $esolution b needs stoc+holders approval.
12.7his vacanc! in the "oard of directors ma! "e lled "! the "oard of directors if the remaining directors still constitute a )uorum.
a. $emoval of a director ". *eath of a director
c. ncrease in the num"er of directors d. 5#piration of the term of a director
1-.% issues a promissor! note pa!a"le to P or "earer. hich of the following is not correct
a. f indorsed "! P to A and A also indorses it to B, B ma! negotiate the note to "! deliver!.
". f indorsed "! P to A and A also indorses it to B, P is lia"le to A and B.
c. f indorsed "! P to A and A also indorses it to B, and B negotiates the note to "! deliver!. A is lia"le to B and .
d. f P negotiates the note to A "! deliver! and A indorses it to B, B ma! negotiate the note to "! deliver!.
14.hich of the following is not correct
a. here the instrument is negotiated "ac+ to prior part!, all intervening indorsements are not necessar! to the holder’s title.
". here the instrument is originall! pa!a"le to order, the holder ma! not stri+e out the pa!ee’s indorsement.
c. 7he indorser whose indorsement is struc+ out and all the indorsers are there"! relieved from lia"ilit! on the instrument.
d. 7he holder ma! at an! time stri+e out an indorsement which is not necessar! to his title.
1'.Statement I C A maDorit! of the num"er of directors or trustees as #ed in the articles of incorporation shall constitute a )uorum for the transaction of corporate "usiness, and ever! decision of at least a maDorit! of the directors or trustees present at a meeting at which there is a )uorum shall "e valid as a corporate act, e#cept for the election of the oEcers which shall re)uire the vote of maDorit! of all the mem"ers of the "oard.
Statement II C @o person convicted of nal Dudgment of an oense punisha"le "! imprisonment for a period e#ceeding ve !ears or a violation of the
corporation code committed within si# !ears prior to the date of his election or appointment, shall )ualif! as a director, trustee or oEcer of an! corporation.
a. 7rue, 7rue ". 7rue, 6alse c. 6alse, 7rue d. 6alse, 6alse
1.% ma+es and delivers a promissor! note pa!a"le to the order of P. P indorses the note to A. Fater, 3 steals the note and negotiates the same to B "! forging A’s signature. 7hereafter, B negotiates the note to , to * and * to 5, a holder in due course. hich of the following statements is correct
a. 5 can hold % and P lia"le "ecause their signature are genuine.
". 5 cannot hold B, and * lia"le "ecause the! have no participation in the commission of the forger!.
c. 5 can enforce the instrument onl! against 3, the forger
d. 5 can enforce the instrument against 3, B, and * "ut not against %, P, A.
-1(.P, G and A are partners in an import and e#port "usiness. ustomers desiring to place an order for imported articles are alwa!s re)uired to ma+e a deposit of 2'> of the total cost of the order. B, a regular customer, deposited P,000 to P for his order. P, instead of turning over the said amount to the partnership,
misappropriated it. As a result, one is not correct
a. B ma! institute a claim against the partnership and all the partners. ". 7he personal lia"ilit! of the partners is Doint.
c. 7he partnership is "ound to ma+e good the loss where one partner acting within the scope of his apparent authorit! receives mone! or propert! of a third person and misapplies it.
d. All the partners are lia"le solidaril! with the partnership for ever!thing chargea"le to the partnership.
1&.7he dut! to ma+e disclosure, where otherwise there would "e a great and unfair relation of directors to stoc+holders.
a. 3pecial ircumstances $ule ". 7rust fund theor!
c. *octrine of corporate opportunit! d. ncorporation 7heor!
1.% ma+es a promissor! note pa!a"le to the order of P for P',000. After deliver! to P, P changed the amount to P'0,000. 7hereafter, P indorsed the note to A, A to B, B to , to * and * to 5. 7he parties su"se)uent to P were not aware of the
alternation made "! P. hich of the following statement is correct a. 5 can hold % lia"le for P'0,000 if 5 is a holder in due course ". 5 can hold % lia"le for P',000 if 5 is a holder is due course
c. 5 can hold % lia"le for an! amount if 5 is not a holder in due course d. 5 can hold A, B, and * lia"le for P'0,000 provided 5 is a holder in due
course
20.A contract where the creditor ac)uires the right to receive the fruits of an immova"le of his de"tor, with the o"ligation to appl! them to the pa!ment of interest if owing, and thereafter to the principal of his credit is
a. Antichresis ". Hsufruct
c. $eal estate mortgage d. ommodatum
21.A holder is a holder in due course if he has ta+en the instrument complete and regular on its face and three of the following conditions, e#cept
a. 7hat he "ecame the holder of the instrument "efore it was dishonored and without that it had "een previousl! dishonored if such was the fact
". 7hat he too+ it in food faith and for value
c. 7hat there is negotiation to him "efore it "ecame overdue
d. 7hat at the time it was negotiated to him, he had no notice of an! inrmit! in the instrument or defect in the title of the person negotiating the same 22.% e#ecutes a promissor! note for P10,000,000 pa!a"le to the order of P. % and P
had a private understanding that % is lia"le onl! for the discounted amount of P,'00,000. P indorsed the note to A, A to B, B to , and * and * to , holder. As a result,
a. % ma! refuse to pa! if P is a minor
". f % dishonors the note, A ma! refuse to pa! on the ground that A is a remote part!
c. 7he indorsement made "! P passed title to the instrument in favor of A even if P is a minor
d. % is lia"le to for P,'00,000 since that was the amount that he agreed with P that he should pa!
2-.A pledged his ring to B for P20,000. A failed to pa! his o"ligation. B sold it at a pu"lic auction for P1&,000. an B recover the decienc!
a. ?es, even without stipulation ". ?es, if there is stipulation
c. @o, even if there is stipulation d. @o, unless there is stipulation
24.Hsing the a"ove data, if the sale is P22,000. an A recover the e#cess a. ?es, even without stipulation
". ?es, if there is stipulation
c. @o, even if there is no stipulation d. @o, if there is stipulation
2'. mortgaged his car to B for P200,000. failed to pa! his o"ligation. B sold it at a pu"lic auction for P1&0,000. an B recover the decienc!
a. ?es, even without stipulation ". ?es, onl! if there is stipulation c. @o, even if there is stipulation d. @o, unless there is stipulation
2.Hsing the a"ove data, if the sale is for P220,000, can recover the e#cess a. ?es, even without stipulation
". ?es, onl! if there is stipulation c. @o, even if there is stipulation d. @o, unless there is stipulation
2(.An! director of a corporation ma!"e removed from oEce "! a vote of a. %aDorit! of the mem"ers of the "oard
". %aDorit! of the stoc+holders present c. 2/- of the stoc+holders present d. 2/- of the outstanding capital stoc+
2&.A, B and are partners in a universal partnerships of prots engaged in operation of ta#is. 7he partners contri"uted<
AI 100 7o!ota Jios BI -,000 s)m land I 6uel and oils
hich of the following is correct
a. n case of loss due to fortuitous event, the partnership "ears the loss ". 7he partnership "ecomes the owner of the things contri"uted to the
partnership
c. 7he partners retained the ownership over the things the! contri"uted hence, the! will "ear the ris+ of loss
d. 7he partnership "egins from the moment of the e#ecution of the contract, e#cept if stipulated otherwise
2.As regards cash dividends, which of the following is correct
a. *eclared "! the "oard "! maDorit! vote and ratied "! the stoc+holders "! maDorit! vote
". *eclared "! the "oard "! maDorit! vote and ratied "! the stoc+holders "! 2/- vote of the outstanding capital stoc+
c. *eclared "! the "oard "! maDorit! vote and need not "e ratied "! the stoc+holders
d. *eclared "! the "oard "! 2/- vote and need not "e ratied "! the stoc+holders
-0.hich of the following statements is not correct
a. An agreement to constitute a commodatum is "inding and is perfected from the moment there is meeting of minds
". 6i#ed, savings, and current deposits of mone! in "an+s and similar institutions shall "e governed "! the provisions concerning mutuum c. Precarium is a +ind of commodatum where the "ailor ma! demand the
thing loaned at will
d. n case of e#traordinar! e#penses, the de"tor in mutuum will shoulder '0> if he is in actual use of the thing "orrowed
-1.A contri"uted P1%, B contri"uted P1%, and contri"uted services. 7he! agreed to divide the prots and losses e)uall!. n case of loss of P-%, for how much, if an!, is lia"le
a. @othing, "ecause an industrial partner is e#empt from losses ". P1% "ut with reim"ursement from A and B e)uall!
c. A and B shall shoulder the loss e)uall! at P1.'% each d. P1%, as stipulated
-2.As regards the corporate "!Ilaws, which of the following is true
a. 7o adopt, amend or repealI 2/- of the outstanding capital stoc+ is needed ". 7o delegate to the "oard of directors the power to amend, repeal or adopt
new "!Ilaws, maDorit! of the outstanding capital stoc+
c. 7o revo+e the power delegated to the "oard to amend, repeal or adopt new "!Ilaws, 2/- of the outstanding capital stoc+
d. 7o amend, repeal or adopt new "!Ilaws, maDorit! of the outstanding capital stoc+
--.A contract of antichresis is
a. A contract of mortgage where"! possession of the mortgaged propert! is given to the creditor
". A contract of loan secured "! a real propert!K where possession is retained "! the de"tor
c. A contract of loan without securit!
d. A consensual contract as it is perfected "! mere consent
-4.A su"scri"ed to 1,000 voting shares of stoc+ of = orporation. 3he paid 2'> of the said su"scription. *uring the stoc+holders meeting, can A vote all her
su"scri"ed shares
a. @o, "ecause the su"scription has not !et "een full! paid
". @o, "ecause A’s shares have "ecome delin)uent which cannot "e voted c. ?es, as to the paid percentage of su"scription
d. ?es, "ecause unpaid shares not delin)uent can "e voted
-'.A was having his house repaired "! B, who needed construction materials, so A orall! told the seller , :9ive B the materials, shall "e responsi"le. shall pa! in -0 da!s. delivered the materials. As a result,
a. 7he contract is unenforcea"le "ecause A made an oral agreement to answer for the de"t of B
". 7he contract is unenforcea"le "ecause A did not ma+e a special promise to answer for the default of another person
c. 7he contract shall "e enforcea"le if there is ratication "! A
d. 7he contract shall "e unenforcea"le if the value is at least P'00.00
-. n which of the following is demand necessar! to ma+e the de"tor in dela! in the performance of his o"ligation
a. hen the time of performance is of the essence ". hen the time of performance has "een stipulated c. hen the law so provides
d. hen demand would "e useless
-(.P appointed A1 and A2 as his agents for a common transaction and the! agreed that the! shall "e solidaril! lia"le to P for damages in case of violations of their o"ligation as such. hen is the agent at fault the onl! one lia"le for damages even if solidarit! has "een stipulated
a. f the other agent is not at fault
". Both of them shall "e lia"le alwa!s since solidarit! was agreed upon c. f the one at fault shall answer for all the damages
d. f the one at fault acted in e#cess of authorit!
-&.A and B are coIowners of a parcel of land from where the! share the prots e)uall! as coIheirs in inheritance. s there a partnership
a. 7here is a prima facie presumption of partnership "ecause of the e)ual sharing of prots
". 7here is no partnership "ecause coIownership "! itself does not esta"lish a partnership despite the sharing of prots
c. 7here is no partnership since in partnership, division of prots is not alwa!s necessar! among partners
d. 7here is prima facie presumption of partnership the! "eing coIowners and coIpossessors
-.A and B are partners in AB partnership. hile A was performing his duties as a partner in the course of "usiness, he negligentl! caused damages to =, a third person. ho shall "e lia"le to = and up to what e#tent
a. Gnl! the partnership shall "e lia"le it "eing a Duridical person separate and distinct from the partners
". Gnl! A shall "e lia"le for he is the onl! one at fault c. Both A and B shall "e lia"le solidaril! to =
d. A, B, and the Partnership are all lia"le solidaril! to =
40.n the matter of management of the corporation, this is supreme< a. President
". hairman of the Board of *irectors c. 3toc+holders
d. Board of *irectors
41.hich of the following statements is not correct
a. ompensation income of individuals that do not e#ceed the statutor! minimum wage is e#empt from the re)uirement of withholding ta# on compensation
". ompensation income of individuals that do not e#ceed ten thousand pesos per month is e#empt from the re)uirement of withholding ta# on
compensation
c. olida! pa!, overtime pa!, night shift dierential pa! and haard pa! received "! individuals shall "e e#empt from income ta#
d. %inimum wage earners who are receiving onl! the statutor! minimum wage are not su"Dect to withholding ta# and conse)uentl! to income ta# 42. AB, a "ed proprietar! hospital organied in 2000, had the following data for
2011<
9ross receipts from patients and la"orator! services P&.'% $ental ncome Lnet of '> w/tM 1.42'%
7otal hospital e#penses &.2%
7he income ta# still due for 2011 is< a. Php '40,000
". Php 10',000 c. Php 1&0,000 d. Php 4',000
4-.A led his income ta# return for calendar !ear 200( on %arch 20, 200&. hen is the last da! for the B$ to collect, assuming A did not pa! the ta# due upon ling
a. %arch 20, 2011 ". April 1', 2011 c. April 1', d. %arch 20,
201-44.Hsing the data a"ove data, assuming A led his income ta# return on April 20, 200& and the return is not fraudulent, when is the last da! for the B$ to ma+e an assessment
a. April 20, 2011 c. April 20, 201-". April 1', 2011 d. April 1',
201-4'.Hsing the data a"ove data, if the B$ issued a decienc! income ta# assessment on %arch 10, 2010, when is the last da! for the B$ to collect
a. %arch 10, ". April 1', 201-c. %arch 10, 201' d. April 1', 201'
4.7he e#port sales of a vat registered enterprise is a. 5#empt from the vat
". 3u"Dect to 0> vat c. 3u"Dect to 12> vat
d. 3u"Dect to percentage ta#
4(.A led his 7$ for 2011 on April 1', 2012 and will pa! his ta# lia"ilit! in instalment. 7he return shows an income ta# due of P100,000 and income ta# withheld of P0,000. f A pa!s the 2nd installment onl! on Gcto"er 1',2012, the
amount to "e paid Le#cluding compromise penalt!M is a. P2,000
". P-',000 c. P'',000 d. P'2,000
4&.7he *G restaurant, a JA7Iregistered ta#pa!er, issued the following oEcial receipt dated April 1&, 2012<
2 pieces crisp! chic+en P200.00
3iomai special 4'.00
3agoIgulaman &'.00
%ushroom and chic+en soup 100.00
Braised "eef with cauliNower 240.00
o+e light in can L2#P40M &0.00 P('0.00
Focal ta# 1'.00
3ervice charge 0.00
7otal P&2'.00
7he output vat on the sale is a. P.00
". P&&.- c. P&0.- d. P&1.
4. hich of the following properties owned "! a nonIresident alien decedent is not su"Dect to the rule on reciprocit!
a. 3hares of stoc+ in a Philippine domestic corporation
". nvestment in stoc+ in a H3 corporation &0> of the "usiness of which is in the Philippines
c. nvestment in "onds in a H3 corporation that have ac)uired "usiness situs in the Philippines
d. 40> share in a Philippine partnership
'0.*ue to nancial diEculties, AB orp re)uested that its 2011 income ta# lia"ilit! of P400,000 "e paid in four L4M e)ual monthl! instalments, starting April 1', 2012. ts re)uest for instalment pa!ment was approved on April &, 2010. 7he ta# due on %a! 1', 2012 is
a. P100,000 ". P101,( c. P10',000 d. P10,(
'1.%r. Bagong"aha! ac)uired his old principal residence in 10 at a cost of P4%. e sold the said propert! on Oanuar! 1, 2010 for P1%, although the 6%J on that due was P20%. ithin the reglementar! period, Bagong"aha! ac)uired his new principal residence for P12%. hich of the following is incorrect
a. Bagong"aha! has to pa! capital gains ta# of P-00,000 ". 7he cost "asis for the new principal residence is P-.2% c. 7he utilied amount of the gross selling price is P12%.
d. f the proceeds were not used to "u! a new principal residence, the capital gains ta# should have "een P1.2%
'2.Gn April 1', 2010, A led his income ta# return for his 200 income and paid the ta# due thereon. n 2011, A discovered that he made an overpa!ment in his income ta# return. e led a written claim for refund of ta# erroneousl! with the $ on Gcto"er 1, 2011. Gn April 14, 2012, without receiving a decision on his claim for refund, A led in the 7A a petition for review on his claim for refund of ta# erroneousl! collected. hich of the following is correct
a. 7he 7A did not ac)uire Durisdiction over the petition for review "ecause the appeal is premature, there "eing no decision !et on said claim for refund
". 7he 7A’s Durisdiction is to review "! appeal decisions of the B$ ommissioner so if there is no decision, there is nothing to review
c. 7he 7A ac)uired Durisdiction over the petition since it is the right of a ta#pa!er to go to the 7A with or without decision rendered "! the B$ ommissioner
d. 7he 7A ac)uired Durisdiction over the petition as the peremptor! period of 2 !ears within which a claim for refund is a"out to e#pire and the failure of the $ to act on the claim is tantamount to denial of the claim
'-.A sold a personal propert! held as capital asset he ac)uired !ears ago with an ac)uisition cost of P1'0,000 for P2(0,000. 7he pa!ment shall "e made in the following terms. ash down pa!ment of P40,000 and additional P10,000 at the end of the !ear of sale. 7he propert! sold has "een mortgaged for P10,000 which is assumed "! the "u!er. 7he "u!er issued a note pa!a"le for the "alance which is to "e paid e)uall! in two !ears following the !ear of sale. 7he contact price is
a. P2(0,000 ". P110,000 c. P120,000 d. P1-0,000
'4.7he ta#a"le prot for the rst !ear is a. P120,000
". P0,000 c. P-0,000 d. P1',000
''.=? corporation led its income ta# return and paid the ta# due for calendar !ear 2011 showing a ta# lia"ilit! of P1(',000. owever, upon audit, it was discovered that its income ta# return was false or fraudulent "ecause it did not report other ta#a"le income. Per investigation the correct income ta# due is P-'0,000. 7he corporation was dul! informed of this nding through preliminar! assessment notice. 6ailing to protest on time against the preliminar! assessment notice, a formal letter of demand and assessment notice was issued on %a! -1, 201-calling for pa!ment of the decienc! income ta# on or "efore Oul! 1', 201-. 7he amount due on Oul! 1', 201- is
a. P-0,2'0 ". P21&,('0 c. P-41,2'0 d. P12,'00
'.*56 ollege, a private educational institution organied in 200 had the following data in 2011<
7uition 6ees Php 4.&%
$ental ncome Lnet of '> w/tM 4.40%
7otal school e#penses .4'%
7he income ta# still due for 2011 is a. Php 1',000
". LPhp ',00M c. LPhp 0,00M d. Php 200,000
'(.7he point on which a ta# "urden nall! rests or settles down is a. @ature of ta#ation
". 7heor! of ta#ation c. mpact of ta#ation d. ncidence of ta#ation
'&.Gne of the following distinctions "etween donation inter vivos and donation mortis causa is not correct
a. 7he rst ta+es eect during lifetime of the donor while the second ta+es eect upon the death of the grantor
". 7he rst re)uires a pu"lic document while the second does not re)uire a pu"lic document
c. 7he rst is su"Dect to donor’s ta# while the second is estate ta#
d. 7he rst is valued at fair mar+et value at the time the propert! is given while the second is valued at fair mar+et value at the time of death of the grantor
'.AB orporation, a vatIregistered enterprise has the following sales for the month<
3ale to private entities Php 2,000,000
3ale of e#empt goods 1,000,000
3ale to the government 1,000,000
7otal sales for the month Php 4,000,000
7he following input ta#es were passed on "! its vat suppliers<
nput ta# on ta#a"le goods Php &0,000
nput ta# on sale of e#empt goods 20,000
nput ta# on sale to the government 40,000
nput ta# on deprecia"le capital goods not directl! attri"uta"le
to an! specic activit! Lmonthl! amortiation for 0 monthsM 10,000
7he vat due for the month is a P&0,000
" P10,000 c P40,000
d 0
0.Hsing the preceding num"er, the amount not availa"le for input ta# credit "ut ma! "e recognied as cost or e#pense is
a. Php 140,000 ". Php (0,000 c. Php 0,000 d. Php &0,000
1. hich of the following statements is not correct
a. An article su"Dect to e#cise ta# ma!"e e#empt from vat ". An article su"Dect to e#cise ta# ma!"e su"Dect to vat
c. A ta#pa!er ma! have two "usinesses where one is su"Dect to vat and the other is su"Dect to percentage ta#
d. %anufacturers and importers of goods are su"Dect to e#cise ta#
2. A, a citien of the Philippines and a resident of Bacolod it!, died testate on April 1, 2012. Among his gross estate are properties purchased from his father who died on April 4, 200. hat percentage of deduction will "e used in computing the amount of vanishing deduction
a. 20> ". 40> c. 0> d. 0
-. 7he donor and done are stranger to each other a. 9ift to the "rother of donor’s grandfather
". 9ift to the daughter of the granddaughter of the daughter of the donor’s granddaughter
c. 9ift to the grandson of the donor’s sister
d. 9ift to the granddaughter of the sister of the donor’s mother 4. Gne of the following is not e#empt from JA7
a. Fease of residential units with a monthl! rental not e#ceeding P12,&00 ". 3ervices su"Dect to percentage ta#
c. 3ervices rendered "! individuals pursuant to emplo!erIemplo!ee relationship
d. 5#port sales "! persons who are vatIregistered
'.hich one of the following is not allowed with presumptive input ta# a 7hose engaged in the manufacturing of rened sugar
" 7hose engaged in manufacturing pac+ed noodle "ased instant meals c 7hose engaged in the processing of canned products
d 7hose engaged in pasteuriing mil+
. f the surviving heirs are the spouse and parents of the decedent, the legitime of the spouse under testamentar! succession is
a. 1/4 ". 1/- c. 1/& d. 1/2
(. Propert! su"Dect to vanishing deduction had the following data. 6air mar+et value when inherited 4 Q !ears "efore and at the death of P220,000 and P-20,000 respectivel!. %ortgage inde"tedness paid thereon "! the decedent is P20,000. 9ross estate and deductions Le#cept vanishing deduction and famil! home and standard deductionM of P2,000,000 and P'0,000, respectivel!. 7he vanishing deduction is a. P(&,000 ". P220,000 c. P1',000 d. P-,000 11
&. A, a JA7 registered person had the following data for April 2012 Lvat not includedM<
a. 5#port sale of feeds for animals
i 6or human consumption P 1,'00,000
ii 6or race horses and ghting coc+s '00,000 " *omestic sale of feeds for animals
i 6or human consumption P ('0,000
ii 6or race horses and ghting coc+s 2'0,000 c nput ta# which cannot "e directl! attri"uted
to an! of the a"ove sales 100,000 7he output ta# for April is
a. P-0,000 ". P0,000 c. P0,000 d. P120,000
. Hsing the a"ove data, the vat still due Le#cess input ta#M is a. LP4',000M
". LP20,000M c. LP(0,000M d. P',000
(0.hich of the following is su"Dect to vat
a 3ale of passenger or cargo vessels and aircraft for domestic or international transport operations
" 3ale of agricultural and marine food products in their original state c 3ales "! agricultural cooperatives dul! registered with the ooperative
*evelopment Authorit!
d 3ale of fuel, goods and supplies "! persons engaged in international shipping or air transport operations
(1. Proceeds of life insurance where a third person other than the e#ecutor, or administrator or the decedent is the "eneciar! is
a. Part of gross income whether revoca"le or irrevoca"le ". @ot part of gross income whether revoca"le or irrevoca"le c. Part of gross estate whether revoca"le or irrevoca"le
d. @ot part of gross estate whether revoca"le or irrevoca"le
(2. A’s income ta# lia"ilit! for 2011 was P(',000. 3he led the return and paid the total amount due "ut not with the proper internal revenue district oEce on Oul! 1', 2012. 7he amount pa!a"le Lignoring compromise penalt!M
a P(,'00 " P112,'00 c P11,2'0 d P1-',000
(-.7he following were ta+en from the income statement of A orporation for the ta#a"le !ear 2011<
9ross prot from sales P1,000,00 0 Fess< Business connected e#penses P-0,000
Provision for "ad de"ts 0,000 (20,00 0
@et income "efore income ta# P
2&0,000 Additional information<
a. Accounts written o during the !ear and charge to allowance for "ad de"ts
P 0,000 ". $ecoveries on account receiva"le previousl! written o in
2010
i Allowed "! B$ as deductions -0,000
ii *isallowed "! B$ as deduction
40,000 c. $efund of ta#es paid in 2010<
i Allowed "! B$ as deduction '0,000
ii *isallowed "! B$ as deduction 0,000 7he ta#a"le income is
a P-10,000 " P410,000 c P-0,000 d P-40,000
(4. *G* Airlines, an international air carrier showed the following gross receipts<
Pint ! Ori"in De#tinatin $r## Re%eipt#
Philippines hina P 2,000,000
Philippines 3ingapore 1,00,000
3ingapore Oapan -,000,000
7went!Ive percent of the shipment from the Philippines to 3ingapore were later shipped from 3ingapore to Oapan. 7he percentage ta# due is
d P1&,000 e P1&,000 f P10&,000 g P,000
('.*G* Broadcasting, a nonIvat holder of a franchise to operate a radio and television networ+ reported the following gross receipts Lnet of an! ta#M< ?ear 2010 P ,000,000
2011 12,000,000 2012 1&,000,000 7he "usiness ta# lia"ilit!
2010 2011 2012 a P 2(0,000 P -0,000 P2,10,000 " 1,0&0,000 1,440,000 2,10,000 c 2(0,000 1,440,000 2,10,000 d 1,0&0,000 -0,000 2,10,000
1-(.7he gross estate of A includes P&0,000 receiva"le which is dul! notaried from the de"tor B whose records show<
a Assets P 100,000
" nde"tedness to<
i 9overnment "! wa! of ta#es 40,000
ii A &0,000
iii Gther creditors 20,000
7he deducti"le claims against insolvent person is
a P&0,000 ". P2,2&' c. P4&,000 d. P-2,000 ((.=? orporation, a domestic corporation had the following data during the
calendar !ear 2011
9ross income P
1,000,000
Business connected e#penses 400,000
*ividends from<
a *omestic corporation 100,000
" 6oreign corporation, 0> of the gross income was derived from the Philippines
100,000 c 6oreign corporation, 0> of the gross income was
derived from the Philippines
&0,000 d 6oreign corporation, -0> of the gross income was
derived from the Philippines
40,000
7he ta#a"le income is a P20,000
" P&20,000 c P(4&,000 d P('0,000
(&., vatIregistered person, imported machines to "e used in the Philippines as follows<
Ma%&ine# P'r%&a#e Pri%e P'rp#e
1 P100,000 Personal Hse
2 200,000 Business Hse
- -00,000 6or 3ale
7he importations were su"Dected to '0> e#cise ta# "ased on purchase price. %achine - was sold for P1,000,000 Lnet of vatM. ow much is the vat paid on importation
a. P10&,000 ". P0,000 c. P'4,000 d. P-,000
(.Hsing the a"ove date, the vat pa!a"le is a. P12,000
". P-0,000 c. P10,000 d. P&4,000
&0.A, a JA7 registered ta#pa!er made the following ac)uisition of capital goods from JA7 registered suppliers Lnet of vatM during the )uarterK
Date (#t E#timate) Li!e
Oul! 2 P1,'00,000 & !ears
10 '00,000 2 !ears
Aug. ' 400,000 - !ears
20 '00,000 4 !ears
3ept. 10 '00,000 4 !ears
1' 00,000 !ears
7he Oul! 2 ac)uisition was retired in 3eptem"er. 7he input ta# for 3eptem"er is a. P1(,4'0
". P1(&,'0 c. P(,'0 d. P4,'0
ANS*ERS+ April 21, 2012 1 * 2 * - 4 B ' * ( A & * * 10 B 11 12 B 1- 14 1' B 1 * 1( B 1& A 1 B 20 A 21 A 22 2- 24 B 2' A 2 A 2( * 2& * 2 -0 * -1 * -2 * -- A -4 * -' B - B -( * -& B - * 40 * 41 42 B 4- B 44 A 4' 4 B 4( 4& 4 B '0 '1 B '2 * '- '4 '' A ' B '( * '& B ' A 0 B 1 * 2 * - * 4 * ' A ( * & A A (0 * (1 B (2 (- (4 * (' A ( * (( B (& A ( B &0 B
