BLT Final Pre-boards NCPAR

Northern CPAR: Business Law and Taxation –Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD FINAL PRE-BOARD EXAMINATEXAMINATION ION

NORTHERN CPA REVIEWNORTHERN CPA REVIEW44thth Floor Floor Pelizloy Centrum, Lower Session Pelizloy Centrum, Lower Session Road, Baguio CityRoad, Baguio City, Philippines, Philippines

Mobile Numbers SM!R" #$%$4&$'()& * +LB- #$%(%'%&%#4Mobile Numbers SM!R" #$%$4&$'()& * +LB- #$%(%'%&%#4-.mail-.mail n/par0yahoo1/omn/par0yahoo1/om

A ATTYTTY. ANDRIX DOMINGO. ANDRIX DOMINGO, CP, CPAA

REX B. REX B. BANGGAWBANGGAWAN, CPA, MBAAN, CPA, MBA

BUSINESS LAW AND TAXATIONBUSINESS LAW AND TAXATION

FINAL PRE-BOARD EXAMINATION FINAL PRE-BOARD EXAMINATION

1.1. CorpoCorporatioration n govergoverned by ned by specspecial ial laws aside laws aside from the from the requrequiremeirementsnts

spespecifcified ied undunder er the the corcorporporatiation on lawlaws. s. In In ordorder er thathat t thetheir ir ArtArticlicles es ofof

Incorporation may be approved or accepted, they must present before theIncorporation may be approved or accepted, they must present before the

Securities and Exchange Securities and Exchange Commission.Commission.

aa.. A A ffaavvoorraabblle e rreeccoommmmeennddaattiioon n ffrroom m tthhe e iinniissttrry y oof f !!iinnaannccee

bb.. A A ccooppy y oof f pprreevviioouus s iinnccoomme e ttaax x rreettuurrn n aannd a d a ssttaatteemmeennt t ooff

assets, liabilities and networth.assets, liabilities and networth.

cc.. A A ffaavvoorraabblle e rreeccoommmmeennddaattiioon n oof f tthhe e aapppprroopprriiaatte e ggoovveerrnnmmeenntt

agency in the effect that such article or amendment is in accordanceagency in the effect that such article or amendment is in accordance

with law.with law.

dd.. AAn un unnddeerrttaa""iinng tg to co chhaanngge te thhe ne naamme oe of tf thhe ce coorrppoorraattiioon in if tf thheerree

is already registered with the SEC a name similar to the name of theis already registered with the SEC a name similar to the name of the

corporationcorporation

2.2. I. I. If thIf the cere certitifificacatition is obton is obtaiainened not by the hod not by the holdlder but byer but by

others, the secondary parties are also discharged as when it is obtainedothers, the secondary parties are also discharged as when it is obtained

by the dby the drawer even rawer even at the at the request of request of the payee the payee or even tor even though the hough the drawerdrawer

is also the payee.is also the payee.

II. #he certification of chec"s enables a person not well acquainted withII. #he certification of chec"s enables a person not well acquainted with

each other to close promptly business transactions since the holder "nowseach other to close promptly business transactions since the holder "nows

that he can compel the drawee ban" to cash it. It thus avoids the delaythat he can compel the drawee ban" to cash it. It thus avoids the delay

and ris"s of receiving, counting, and passing from hand to hand largeand ris"s of receiving, counting, and passing from hand to hand large

sums of money.sums of money.

a.a. $n$nly ly ththe %e %stst Statement is #rue Statement is #rue

b.b. $n$nly ly ththe &e &ndnd Statement is #rue Statement is #rue

c.c. 'oth 'oth StatStatementements are s are #rue#rue

d.d. 'oth 'oth StatStatementements are s are !alse!alse

3.3. ay contribute money, property or industry to a ay contribute money, property or industry to a common fundcommon fund

aa.. ''ootth h ggeenneerraal l aannd d lliimmiitteed d ppaarrttnneerrss

bb.. ((iimmiitteed d ppaarrttnneerrss

cc.. ))eenneerraal l ppaarrttnneerrss

dd.. CCaappiittaalliisst t ppaarrttnneerrss

4.4. *ex, a bright young star with a golden touch and +arryl, a pastor*ex, a bright young star with a golden touch and +arryl, a pastor

who lectures with a melodious voice entered into a universal partnershipwho lectures with a melodious voice entered into a universal partnership

of all present property. #he common property of of all present property. #he common property of the partnership shall bethe partnership shall be

aa.. AAlll tl thhe pe prrooppeerrttiiees ws whhiicch bh beelloonnggeed td to eo eaacch oh of tf thhe pe paarrttnneerrs as att

the time of the the time of the constitution of the partnershipconstitution of the partnership

bb.. AAlll tl thhe pe prrooppeerrttiiees ws whhiicch sh shhaalll bl beelloonng tg to eo eaacch oh of tf thhe pe paarrttnneerrss

after the constitution of the partnership.after the constitution of the partnership.

cc.. AAlll tl thhe pe prrooppeerrttiiees ws whhiicch bh beelloonnggeed td to eo eaacch oh of tf thhe pe paarrttnneerrs as att

the time of the constitution of the partnership as well as propertiesthe time of the constitution of the partnership as well as properties

which each may acquire thereafter.which each may acquire thereafter.

dd.. AAlll tl thhe pe prrooppeerrttiiees ws whhiicch bh beelloonnggeed td to eo eaacch oh of tf thhe pe paarrttnneerrs as att

the time of the constitution of the partnership as well as the profitsthe time of the constitution of the partnership as well as the profits

which they may acquire therewith.which they may acquire therewith.

5.5. #hree of the following enumerations are not authori-ed to issue no#hree of the following enumerations are not authori-ed to issue no

par value shares of stoc" . hich is the exception/par value shares of stoc" . hich is the exception/

aa.. IInnssuurraanncce e ccoommppaanniieess

bb.. IInndduussttrriiaal l ccoommppaanniieess

cc.. 00uubblliic c uuttiilliittiieess

dd.. ##rruusst t CCoommppaanniieess

11

NCPAR…driven for real exellene! NCPAR…driven for real exellene! B"T #$ Andrix Do%in&o ' Rex Ban&&a(anB"T #$ Andrix Do%in&o ' Rex Ban&&a(an BLT – 5BLT – 5thth

Batch – Batch –

PB03PB03


6.6. hich one of the following is not a requisite prescribed by law inhich one of the following is not a requisite prescribed by law in

order that a partnership may be held liable to a third party for the actsorder that a partnership may be held liable to a third party for the acts

of one of its partners/of one of its partners/

aa.. ##hhe e ccoonnttrraacct t mmuusst t bbe e iin n tthhe e ppaarrttnneerrsshhiip p nnaamme e oor r oof f iittss

account.account.

bb.. ##hhe e ppaarrttnneer r bbiinndds s tthhe e ppaarrttnneerrsshhiip p bby y aaccqquuiieesscceenncce e ffoorr

obligations he may have contracted in good obligations he may have contracted in good faith.faith.

cc.. ##hhe e ppaarrttnneer r mmuusst t aacct t oon n bbeehhaallf f oof f tthhe e ppaarrttnneerrsshhiipp

dd.. ##hhe e ppaarrttnneer r mmuusst t hhaavve e tthhe e aauutthhoorriitty y tto o bbiinnd d tthhe e ppaarrttnneerrsshhiipp..

7.7. Any stoc"holder of a corporation shall have the right to Any stoc"holder of a corporation shall have the right to dissent anddissent and

demand payment of the fair value of his share1s in three of the followingdemand payment of the fair value of his share1s in three of the following

corporate acts. hich is the exception/corporate acts. hich is the exception/

aa.. IIn cn caasse oe of af anny ay ammeennddmmeennt tt to to thhe Ae Arrttiiccllees os of If Innccoorrppoorraattiioonn

whiwhich ch has the has the effeffect of ect of chachanginging ng or or resrestritricticting ng the rightthe rights s of of anyany

stoc"holder or class of shares.stoc"holder or class of shares.

bb.. IIn n ccaasse e oof f mmeerrggeer r oor r ccoonnssoolliiddaattiioonn..

cc.. IIn cn caasse oe of f ssaallee, , lleeaassee, e, exxcchhaannggee, , ttrraannssffeerr, m, moorrttggaaggee, p, plleeddggee,,

or or othother er disdispospositiition on of of all all or or subsubstastantintiallally y all all of of the the corcorporporateate

assets and property of the assets and property of the corporation.corporation.

dd.. IIn n ccaasse e oof f iinnccuurrrriinng g , , ccrreeaattiinng g oor r iinnccrreeaassiinng g bboonnddeedd

indebtedness.indebtedness.

8.8. hich of the following is not a requisite to consider a person anhich of the following is not a requisite to consider a person an

accommodation party/accommodation party/

aa.. 22e e mmuusst t nnoot t bbe e lliiaabblle e tto o a a hhoollddeer r iin n dduue e ccoouurrssee..

bb.. 22e e mmuusst t bbe e a a ppaarrtty y tto o tthhe e iinnssttrruummeennt t ssiiggnniinng g aas s mmaa""eerr, , ddrraawweerr,,

acceptor or endorser.acceptor or endorser.

cc.. 22e e mmuusst t nnoot t rreecceeiivve e vvaalluue e tthheerreeffoorree..

dd.. 22e e mmuusst t ssiiggn n ffoor r tthhe e ppuurrppoosse e oof f lleennddiinng g hhiis s nnaamme e oor r ccrreeddiitt..

9.9. A Capitalist partner is engaged for his own account in an operationA Capitalist partner is engaged for his own account in an operation

which is of the "ind of business in which the partnership is engaged.which is of the "ind of business in which the partnership is engaged.

Said partner can beSaid partner can be

aa.. CCoommppeelllleed d tto o sseelll l hhiis s iinntteerreesst t iin n tthhe e ppaarrttnneerrsshhiip p tto o tthhee

other capitalist partners.other capitalist partners.

bb.. CCoommppeelllleed td to o ddiissssoollvve e oor r ddiissccoonnttiinnuue te thhe oe oppeerraattiioon n oof hf hiiss

business.business.

cc.. CCoommppeelllleed td to bo brriinng tg to to thhe ce coommmmoon fn fuunndds os of tf thhe pe paarrttnneerrsshhiip ap annyy

profits accruing to him from his profits accruing to him from his transactions.transactions.

dd.. ++eenniieed d hhiis s sshhaarre e iin n tthhe e pprrooffiitts s oof f tthhe e ppaarrttnneerrsshhiipp..

10.10. hich of the following instruments is not negotiable for the reasonhich of the following instruments is not negotiable for the reason

that the instrument is not payable at that the instrument is not payable at a determinable future time/a determinable future time/

aa.. 33$$n n tthhe e ddeeaatth h oof f 44, , I I pprroommiisse e tto o ppaay y tto o tthhe e oorrddeer r oof f ' ' 00%%,,555555..

6Sgd.7 6Sgd.7 A8A8

bb.. 3 $3 $n on or br beeffoorre $e $ccttoobbeer 9r 955, &, &55%%55, I p, I prroommiisse te to po paay ' oy ' or hr hiiss

order 0 %,555.order 0 %,555.

6Sgd.7 6Sgd.7 A8A8

cc.. 33SSiixxtty y ddaayys s aafftteer r ssiigghhtt, , I I pprroommiisse e tto o ppaay y tto o tthhe e oorrddeer r oof f ' ' 00

%,555.%,555.

6Sgd.7 6Sgd.7 A8A8

dd.. 33##een dn daayys bs beeffoorre te thhe de deeaatth oh of 4f 4, I , I pprroommiisse te to po paay ' y ' oor hr hiiss

order.order.

6Sgd.7 6Sgd.7 A8A8

11.11. A, A, ' ' anand d C C sesecucurered d a a loloan an frfrom om 4. 4. #h#he e prpromomisissosory ry nonote te whwhicichh

evidences the obligation states 3 I promise to pay8 and signed by A, 'evidences the obligation states 3 I promise to pay8 and signed by A, '

and C. #he obligation isand C. #he obligation is

aa.. ::ooiinntt

bb.. SSoolliiddaarryy

cc.. ++iivviissiibbllee

dd.. IInnddiivviissiibbllee

22


Batch – Batch –

PB03PB03


12.12. #he following except one are the rights of a holder in due course. hich#he following except one are the rights of a holder in due course. hich

is the exception/is the exception/

aa.. 22e me maay ey ennffoorrcce pe paayymmeennt ot of tf thhe ie innssttrruummeennt ft foor tr thhe fe fuulll al ammoouunntt

thereof against all parties liable thereon.thereof against all parties liable thereon.

bb.. 22e me maay ry reecceeiivve pe paayymmeennt at annd id if pf paayymmeennt it is is in dn duue ce coouurrssee, t, thhee

instrument is discharged.instrument is discharged.

cc.. 22e he hoolldds ts thhe ie innssttrruummeennt st suubb;;eecct tt to to thhe se saamme de deeffeennsse ae as is if if itt

were non<negotiable.were non<negotiable.

dd.. 22e e mmaay y ssuue e oon n tthhe e iinnssttrruummeennt t oon n hhiis s oowwn n nnaammee..

13.13. A limited partnership named =ES#$>EE Co. (td. was formed on $ctober &?,A limited partnership named =ES#$>EE Co. (td. was formed on $ctober &?,

&5%5 by =ES as general partner and #$ and >EE as limited partners. In&5%5 by =ES as general partner and #$ and >EE as limited partners. In

&5%%, =ES and #$ got married, did the marriage dissolve or put an end to&5%%, =ES and #$ got married, did the marriage dissolve or put an end to

the partnership/the partnership/

aa.. ==eess, , tthhe e ppaarrttnneerrsshhiip p iis s ddiissssoollvveed d bby y mmaarrrriiaagge e bbeeccaauusse e tthheerre e iiss

a change in equity a change in equity among the partners.among the partners.

bb.. @@oo, , bbeeccaauusse e ssppoouussees s ccaan n eenntteer r iinntto o a a uunniivveerrssaal l ppaarrttnneerrsshhiipp..

cc.. ==eess, b, beeccaauusse se sppoouussees cs caan en enntteer ir inntto a po a paarrttiiccuullaar pr paarrttnneerrsshhiipp

on be thereof.on be thereof.

dd.. @@oo, , tthhe e mmaarrrriiaagge e ddiid d nnoot t ddiissssoollvve e tthhe e ppaarrttnneerrsshhiipp..

14.14. 4, = and were partners. 4 is an industrial partner. +uring the first4, = and were partners. 4 is an industrial partner. +uring the first

year of operation, the firm received a profit of 0 B5, 555. +uring theyear of operation, the firm received a profit of 0 B5, 555. +uring the

second year, the firm sustained a loss of 0 95, 555. In the Articles ofsecond year, the firm sustained a loss of 0 95, 555. In the Articles of

0artnership, it was agreed that the industrial partner would get %19 of0artnership, it was agreed that the industrial partner would get %19 of

ththe e prprofofitit. . 'u'ut t wowoululd d nonot t shsharare e in in ththe e lolosssseses. . 2o2ow w mumuch ch wiwill ll 4, 4, ththee

industrial partner get/industrial partner get/

aa.. 4 4 wwiilll l ggeet t oonnlly y 0 0 &&55, , 55555 5 wwhhiicch h iis s %%119 9 oof f tthhe e pprrooffiit t oof f tthhe e %%stst

year of operation.year of operation.

bb.. 4 w4 wiilll l ggeet ot onnlly 0 y 0 &&55, 5, 5555 i5 in tn thhe fe fiirrsst yt yeeaar ar annd d nnoonne ie in tn thhee

second year.second year.

cc.. 4 4 wwiilll l ggeet t oonnlly y 0 0 %%55, , 55555 5 wwhhiicch h iis s %%9 9 oof f tthhe e nneet t pprrooffiitt

dd.. 4 4 wwiilll l sshhaarre e iin n tthhe e lloosss s iin n tthhe e sseeccoonnd d yyeeaarr..

15.15. A, ', and C, capitalist partners each contributed 0 95, 555, 0 &5, 555A, ', and C, capitalist partners each contributed 0 95, 555, 0 &5, 555

and 0 %5, 555, respectively and +, the industrialist partner, contributedand 0 %5, 555, respectively and +, the industrialist partner, contributed

his services. Suppose 4, a customer, is the creditor of the firm to thehis services. Suppose 4, a customer, is the creditor of the firm to the

amount of 0 %D5, 555. Can he recover the 0%D5,555/amount of 0 %D5, 555. Can he recover the 0%D5,555/

aa.. 4 m4 muusst st suue te thhe fe fiirrm am annd gd geet 0 t 0 BB55, 5, 5555 f5 frroom am alll tl thhe pe paarrttnneerrss

including +, the industrial partner. 4. can still recover the balanceincluding +, the industrial partner. 4. can still recover the balance

of 0%&5, 555 from of 0%&5, 555 from the four partners ;ointly.the four partners ;ointly.

bb.. 4 4 ccaan n rreeccoovveer r ffrroom m tthhe e ffiirrm m 0 0 BB55, , 555555. . 4 4 ccaan n ssttiilll l rreeccoovveer r tthhee

balance of 0 %&5, balance of 0 %&5, 555 from the capitalist partners only.555 from the capitalist partners only.

cc.. 4 c4 caan rn reeccoovveer fr frroom tm thhe fe fiirrm 0 Bm 0 B55, 5, 55555. 4 c. 4 caan rn reeccoovveer tr thhee

balance of 0 %&5, balance of 0 %&5, 555 from any of 555 from any of their partners solidarily.their partners solidarily.

dd.. 4 4 ccaan n rreeccoovveer r ffrroom m tthhe e ffiirrm m 0 0 BB55, , 55555 5 aannd d ccoonnssiiddeer r tthhe e bbaallaannccee

of 0 %&5, 555 as loss.of 0 %&5, 555 as loss.

16.16. #he authori-ed capital stoc" of a corporation is 0 ?55, 555 divided into#he authori-ed capital stoc" of a corporation is 0 ?55, 555 divided into

%, 555 shares with a par value of 0 %55 each. At least 0 &?, 555 or &?5%, 555 shares with a par value of 0 %55 each. At least 0 &?, 555 or &?5

shares of the authori-ed capital stoc" must be subscribed. #he &?5 sharesshares of the authori-ed capital stoc" must be subscribed. #he &?5 shares

wewere re susubsbscrcribibed ed by by &? &? susubsbscrcribiberers. s. #o #o memeet et ththe e mimininimumum m amamouount nt ofof

subscription that must be paidsubscription that must be paid

aa.. IIt it is es ennoouuggh th thhaat &t &?? o of tf thhe te toottaal sl suubbssccrriippttiioon in is ps paaiidd,,

regardless of the amount paid by regardless of the amount paid by each individual.each individual.

bb.. EEaacch h aannd d eevveerry y ssuubbssccrriibbeer r mmuusst t aallwwaayys s ppaay y 00&&??5 5 wwhhiicch h iis s &&?? ooff

their individual subscription.their individual subscription.

cc.. SSeevveen on of tf thhe se suubbssccrriibbeerrs ps paaiid 0 Bd 0 B, &, &??5 a5 annd td thhe re reesst ot of tf thhee

subscribers did not ma"e any payment.subscribers did not ma"e any payment.

dd.. @@oonne e oof f tthheessee..

17.17. hich of the following is not a requisite for the existence of a de factohich of the following is not a requisite for the existence of a de facto

corporation/corporation/

aa.. ##hhe ee exxiisstteenncce oe of a f a vvaalliid sd sttaattuutte ue unnddeer wr whhiicch a h a ccoorrppoorraattiioonn

with some of the purposes in question can be formed.with some of the purposes in question can be formed.

33


Batch – Batch –

PB03PB03


bb.. AAn an atttteemmppt it in gn gooood fd faaiitth th to fo foorrm a cm a coorrppoorraattiioon an accccoorrddiinng tg too

the requirements of law.the requirements of law.

cc.. ##hhe e oorrggaannii--aattiioon n iis s nnoot t rreeggiisstteerreed d wwiitth h SSeeccuurriittiiees s aanndd

Exchange Commission.Exchange Commission.

dd.. AAs us usseer or of cf coorrppoorraatte pe poowweerrss, t, thheerre me muusst bt be a te a trraannssaaccttiioon on off

business in some ways as if it were a corporation.business in some ways as if it were a corporation.

18.18. StoStoc" c" corcorporporatiations ons are are proprohibhibiteited d frofrom m retretainaining ing sursurpluplus s proprofitfits s inin

exexcecess ss of of %5%55 5 of of ththeieir r papaid id cacapipitatal l ststococ". ". #h#hreree e of of ththe e fofollllowowiningg

enumerations are exceptions. hich does not belong to the enumerations are exceptions. hich does not belong to the exception/exception/

aa.. hheerre e tthheerre e iis s ppeennssiioon n ppllaan n aas s aaggrreeeed d iin n CCoolllleeccttiivve e ''aarrggaaiinniinngg

Agreement.Agreement.

bb.. hheen n ;;uussttiiffiieed bd by dey deffiinniitte ce coorrppoorraatte exe exppaannssiioon pn prroo;;eecctts os orr

programs approved by the board of programs approved by the board of directors.directors.

cc.. hheen tn thhe ce coorrppoorraattiioon in is ps prroohhiibbiitteed ud unnddeer ar anny ly looaan an aggrreeeemmeenntt

with any financial institution or creditor whether local or foreignwith any financial institution or creditor whether local or foreign

from declaring dividends without its consent.from declaring dividends without its consent.

dd.. hheen in it ct caan bn be ce clleeaarrlly sy shhoowwn tn thhaat st suucch rh reetteennttiioon in is ns neecceessssaarryy

under the special circumstances obtaining in the corporation, such asunder the special circumstances obtaining in the corporation, such as

providing for probable providing for probable contingencies.contingencies.

19.19. hich of the following instrument is negotiable/hich of the following instrument is negotiable/

aa. . 3300aay y tto o ' ' oor r oorrddeerr, , 0 0 %%,,55555 5 aannd d rreeiimmbbuurrsse e yyoouurrsseellf f oouut t oof f mmyy

money in your hands.8money in your hands.8

6Sgd 6Sgd 7A 7A 6to 6to C7C7

bb.. 3 I 3 I hheerreebby ay auutthhoorrii--e ye yoou tu to po paay 0y 0%%,,55555 o5 on on ouur ar accccoouunnt tt to to thhee

order of 4.8order of 4.8

6Sgd.7 A6Sgd.7 A

cc.. 3 I p3 I prroommiisse te to po paay 4 oy 4 or or orrddeer 0 %r 0 %,,55555 o5 on on or br beeffoorre $e $ccttoobbeerr

&?.8&?.8

6Sgd.7 A6Sgd.7 A

dd.. 3300lleeaasse le leet tt thhe be beeaarreer hr haavve 0e 0%%, 5, 5555 a5 annd pd pllaacce te to mo my ay accccoouunntt

and you will oblige.8and you will oblige.8

6Sgd.7 A6Sgd.7 A

20.20. EveEvery ry perperson son negnegotiotiatiating ng an an insinstrutrumenment t by by deldeliveivery ry or or by by a a quaqualiflifiedied

enendodorsrsememenent t wawarrrranants ts ththe e fofollllowowining. g. hhicich h dodoes es nonot t bebelolong ng to to ththee

warranties/warranties/

aa.. ##hhaat t tthhe e iinnssttrruummeennt t iis s ggeennuuiinne e iin n aalll l rreessppeecctts s wwhhaat t iitt

purports to be.purports to be.

bb.. ##hhaat ht he e hhaas gs gooood td tiittlle te to io it at annd td thhaat at alll pl prriioor pr paarrttiiees hs haass

capacity to contract.capacity to contract.

cc.. ##hhaat t tthhe e ppeerrssoon n nneeggoottiiaattiinng g hhaas s nno o lliiaabbiilliitty y tto o a a tthhiirrd d ppeerrssoonn

dd.. ##hhaat ht he he haas ns no "o "nnoowwlleeddgge oe of af anny fy faacct wt whhiicch wh woouulld id immppaaiir tr thhee

validity of the instrument or render it validity of the instrument or render it valueless.valueless.

21.21. r. 'ang<ga owes r. Es"al 0%?5, 555 due on August 9%, &5%%. r. 'ang<gar. 'ang<ga owes r. Es"al 0%?5, 555 due on August 9%, &5%%. r. 'ang<ga

executed a mortgage in favor of r. Es"al on r. 'ang<gas old yellowexecuted a mortgage in favor of r. Es"al on r. 'ang<gas old yellow

bubuilildiding ng whwhicich h is is titiltltining g on on a a raravivine ne of of no no reretuturn rn to to guguararananty ty ththee

obligation. $n August %5, &5%%, the mortgaged building was totally lostobligation. $n August %5, &5%%, the mortgaged building was totally lost

due to due to a a strstrong typhoong typhoon on namname e 3ba3bagyogyong ng SuuSuuS8. $n S8. $n AugAugust %&, ust %&, &5%&5%%, %, r.r.

Es"al demanded payment from r. 'ang<ga. Is r. Es"al demanded payment from r. 'ang<ga. Is r. Es"als demand valid/Es"als demand valid/

aa.. @@oo, , tthhe e oobblliiggaattiioon n iis s wwiitth h a a ddeeffiinniitte e ppeerriioodd, , tthhuus s tthhee

creditor cannot demand fulfillment of the obligation as such would becreditor cannot demand fulfillment of the obligation as such would be

pre;udicial to the rights of the pre;udicial to the rights of the debtor.debtor.

bb.. @@oo, t, thhe oe obblliiggaattiioon in is es exxttiinngguuiisshheed bd beeccaauusse te thhe oe obblliiggaattiioon in iss

lost due to a fortuitous event.lost due to a fortuitous event.

cc.. ==eess, t, thhe de deebbt bt beeccoommees ds duue ae at ot onncce be beeccaauusse te thhe ge guuaarraanntty wy waass

loslost t eveeven n thothough ugh a a forfortuituitoutous s eveevent nt unlunless ess the the debdebtor tor can can mormortgatgagege

another property that is another property that is equally satisfactory.equally satisfactory.

dd.. ==eess, , tthhe e ddeebbt t bbeeccoommees s dduue e aat t oonncce e bbeeccaauusse e tthhe e tteennoor r bbeenneeffiit t iiss

given solely to the creditor thereby giving the creditor the right togiven solely to the creditor thereby giving the creditor the right to

demand performance even before the due date.demand performance even before the due date.

44


Batch – Batch –

PB03PB03


22.22. If a partner in a partnership is insolvent, the first order of preferenceIf a partner in a partnership is insolvent, the first order of preference

in the distribution of his assets arein the distribution of his assets are

aa.. 00aarrttnneerrsshhiip p ccrreeddiittoorrss

bb.. 00aarrttnneerrs s ccoonnttrriibbuuttiioon n tto o tthhe e ppaarrttnneerrsshhiipp

cc.. SSeeppaarraatte e ccrreeddiittoorrs s oor r tthhe e ddeebbttoorrss

dd.. 00rro ro raatte be beettwweeeen tn thhe se seeppaarraatte ce crreeddiittoorrs os of tf thhe de deebbttoor ar annd td thhee

partnership creditors.partnership creditors.

23.23. 44. . = = anand d arare e eqequaual l pparartntneer r to to 4= 4= 00ararttnenerrshshiip. p. A A owowees s ththe e 4=4=

0artnership for 0 F, 555. , a 0artnership for 0 F, 555. , a partner collected from A 0 9, 555 partner collected from A 0 9, 555 before 4before 4

and = received anything. issued a and = received anything. issued a receipt on the 0 9, 555, receipt on the 0 9, 555, as his shareas his share

of what A owes. hen 4 and = collected from A, A of what A owes. hen 4 and = collected from A, A was insolvent.was insolvent.

aa.. 00aarrttnneer r sshhaalll l sshhaarre e ppaarrttnneerrs s 4 4 aannd d = = wwiitth h tthhe e 0 0 99, , 555555..

bb.. ccaannnnoot t bbe e rreeqquuiirreed d tto o sshhaarre e 4 4 aannd d = = wwiitth h tthhe e 0 0 99, , 555555..

cc.. 4 4 aannd d = = sshhoouulld d ffiirrsst t eexxhhaauusst t aalll l rreemmeeddiiees s tto o ccoolllleecct t ffrroom m AA..

dd.. 4 4 aannd d = = ccaan n aauuttoommaattiiccaalllly y ddeedduucct t ffrroom m tthhe e ccaappiittaal l ccoonnttrriibbuuttiioonn

of in the partnership their respective share in the 0 9, 555.of in the partnership their respective share in the 0 9, 555.

24.24. EsEstotong ng whwho o hahas s lolong ng hahalflf<g<graray y hahair ir fafalllls s in in shshagaggy gy lalayeyers rs to to hihiss

shoulders and Gue who has a thing and long goatee which is completelyshoulders and Gue who has a thing and long goatee which is completely

grgrayay, , arare e papartrtneners rs in in a a rereal al esestatate te 6E6ES#S#$@$@)G)GHEHE7 7 papartrtnenersrshihip. p. #h#hee

partnership owns a piece of land which 'al desired to buy. 'al contactedpartnership owns a piece of land which 'al desired to buy. 'al contacted

Estong and informed him of his desire to buy the land and Estong did notEstong and informed him of his desire to buy the land and Estong did not

ininfoform rm GuGue e ababouout t itit. . EsEstotong ng bobougught ht GuGue e ouout t of of ththe e papartrtnenersrshihip p anandd

afterwards sold the land to 'al with a big profit.afterwards sold the land to 'al with a big profit.

aa.. ##hhe e ppaarrttnneerrsshhiip p iis s ddiissssoollvveed d wwhheen n EEssttoonng g bbeeccaamme e tthhe e ssoollee

owner.owner.

bb.. ##hhe e ssaalle e oof f tthhe e llaannd d tto o ''aal l iis s vvooiid d bbeeccaauusse e iit t wwaas s wwiitthhoouut t tthhee

"nowledge of Gue"nowledge of Gue

cc.. EEssttoonng ig is ns noot lt liiaabblle te to Go Guue fe foor tr thhe le laatttteerrs ss shhaarre ie in tn thhee

profits.profits.

dd.. EEssttoonng g iis s lliiaabblle e tto o GGuue e ffoor r tthhe e llaatttteerrs s sshhaarre e iin n tthhe e pprrooffiittss..

25.25. In the matter of management of the business affairs of the corporation,In the matter of management of the business affairs of the corporation,

this is supreme.this is supreme.

aa.. mmaa;;oorriitty y oof f tthhe e ssttoocc""hhoollddeerrss

bb.. &&119 9 oof f tthhe e ssttoocc""hhoollddeerrss

cc.. ''ooaarrd d oof f ++iirreeccttoorrss

dd.. 00rreessiiddeennt t oof f tthhe e ccoorrppoorraattiioonn

26.26. In payment for honor, the In payment for honor, the holder can refuse the payment.holder can refuse the payment.

II.II. In acIn acceptaceptance fnce for hor honor, onor, the the holdeholders rs conseconsent is nt is necesnecessary.sary.





27.27. I. I. A chec" A chec" must be must be presented presented for payment for payment within a within a reasonable reasonable timetime

after its negotiationafter its negotiation

II. An ordinary bill must be II. An ordinary bill must be presented for payment within a reasonablepresented for payment within a reasonable

time after its issuetime after its issue





28.28. I. I. #he holder #he holder of a bof a bill drawn ill drawn in a in a set is set is liable to liable to each person each person toto

whom he has indorsed a part of the bill and should the indorsees, inwhom he has indorsed a part of the bill and should the indorsees, in

turn, indorse their respective parts of the bill, each would be liable onturn, indorse their respective parts of the bill, each would be liable on

the part he has himself indorsed, such part being considered a separatethe part he has himself indorsed, such part being considered a separate

bill by itself.bill by itself.

II. Each part of a bill in set may be negotiated. 'ut the payee is notII. Each part of a bill in set may be negotiated. 'ut the payee is not

supposed to negotiate all the parts since the only reason for drawing thesupposed to negotiate all the parts since the only reason for drawing the

55


Batch – Batch –

PB03PB03


bill in parts is to obtain greater assurance that at least one part willbill in parts is to obtain greater assurance that at least one part will

reareach ch the the paypayee ee or or its its desdestintinatiation on safsafelyely. . 2ow2oweveever, r, shoshould uld the the paypayeeee

negotiate the different parts to different persons, then he is liable onnegotiate the different parts to different persons, then he is liable on

each part.each part.





29.29. ChChoooose se ththe e mimininimumum m rereququirirememenent t of of ththe e CoCorprpororatatioion n lalaw w to to cocorprpororatatee

formationformation

AuAuththorori-i-ed ed cacapipitatal l SuSubsbscrcribibed ed 0a0aid id In In CaCapipitatall

a. a. 0 0 ?5, ?5, 555 555 0 0 &5, &5, 555 555 0 0 ?, ?, 555555

b. b. 0 0 ?5, ?5, 555 555 0 0 &5, &5, 555 555 0 0 J, J, 555555

c. c. 0 0 ?5, ?5, 555 555 0 0 &?, &?, 555 555 0 0 ?, ?, 555555

d. d. 0 0 ?5, ?5, 555 555 0 0 &?, &?, 555 555 0 0 B, B, &?5&?5

30.30. I. I. hen a hen a chec" is chec" is accepted accepted or certior certified, the fied, the drawer and drawer and indorsersindorsers

are discharged from liability thereonare discharged from liability thereon

II. II. In an In an ordinary bordinary bill, the ill, the drawer and drawer and indorsers rindorsers remain liablemain liable in se in spitepite

of the acceptance.of the acceptance.





31.31. #hese are the effects of #hese are the effects of certification of chec"s, exceptcertification of chec"s, except

a.a. It is eqIt is equivauivalent tlent to acceo acceptanptancece

b.b. #h#he e drdrawawer er mamay y ststilill l isissusue e a a ststop op papaymymenent t orordeder r on on ththe e cecertrtififieiedd

chec".chec".

c.c. #h#he e papayeyee e or or hoholdlderer, , fofor r alall l inintetentnts s anand d pupurprpososeses, , bebecocomemes s ththee

depositor of the drawee ban", with rights and duties of one in such adepositor of the drawee ban", with rights and duties of one in such a

situationsituation

d.d. It operatIt operates as an assiges as an assignment of the funment of the funds of the drands of the drawer in the handwer in the handss

of the drawee ban"of the drawee ban"

32.32. A person primarily liable even though he A person primarily liable even though he adds the word 3surety8 toadds the word 3surety8 to

his signature or the fact that his signature or the fact that he signed for accommodation is "nown tohe signed for accommodation is "nown to

the holder.the holder.

a. a. AccomAccomodatiodation gon guaranuarantortor

b.b. AccomAccomodatodation ion drawdrawerer

c.c. AccomAccomodatodation ion drawdraweeee

d.d. AccAccomoomodatdation ma"ion ma"erer

33.33. An instrument is considered payable on demandAn instrument is considered payable on demand

aa.. hheen n nno o ttiimme e oof f ppaayymmeennt t iis s eexxpprreesssseedd..

bb.. hheen n ppaayyaabblle e tto o oorrddeerr

cc.. hheen n tthhe e llaasst t eennddoorrsseemmeennt t iis s iin n bbllaann""

dd.. hheen n tthhe e llaasst t eennddoorrsseemmeennt t iis s rreessttrriicctteedd

34.34. A presented a bill to ', the drawee. ' destroyed the bill. hat can A do/A presented a bill to ', the drawee. ' destroyed the bill. hat can A do/

aa.. A A mmaay y ssuue e ' ' ffoor r tthhe e ddeessttrruuccttiioon n oof f hhiis s pprrooppeerrttyy..

bb.. A A mmaay y ggo o aafftteer r tthhe e ddrraawweee e ffoor r tthhe e bbiillll

cc.. A A mmaay y nno o lloonnggeer r ccoolllleecct t ssiinncce e tthhe e bbiilll l wwaas s ddeessttrrooyyeedd

dd.. A A mmaay y ccoonnssiiddeer r tthhe e bbiilll l aas s iimmpplliieeddlly y aacccceepptteed d bby y ''..

35.35. I. I. here a chere a chec" is cerhec" is certified by ttified by the ban" on he ban" on which it is which it is drawn, thedrawn, the

certification is equivalent to an certification is equivalent to an acceptance.acceptance.

II. here the holder of a chec" procures it to be accepted or certified,II. here the holder of a chec" procures it to be accepted or certified,

only the drawer is discharged from liability thereon.only the drawer is discharged from liability thereon.



66


Batch – Batch –

PB03PB03




36.36. hich statement is true/hich statement is true/

a.a. #axation power #axation power is formidable is formidable and even sand even superior to uperior to the Constitutithe Constitution.on.

b.b. #he ob;ects #he ob;ects of taxation of taxation are persons, are persons, properties an properties an excise.excise.

c.c. !iscal adequacy i!iscal adequacy is an inherent lims an inherent limitation to the eitation to the exercise of taxatixercise of taxation.on.

d.d. +oubl+ouble taxe taxatioation is in is illegallegal.l.

37.37. hich is true/hich is true/

a.a. #he CI* is empowe#he CI* is empowered to terminate red to terminate the taxable perithe taxable period whenever he deod whenever he deemsems

it necessary to enforce the collection of it necessary to enforce the collection of tax.tax.

b.b. #ax a#ax avoidvoidance ance is ilis illegalegal.l.

c.c. #axes can #axes can be sub;ect be sub;ect to compensto compensation or ation or set<off.set<off.

d.d. Claim for eClaim for exemption shall xemption shall be interpretebe interpreted against td against the taxpayer.he taxpayer.

38.38. All of these are All of these are incorrect statement, except/incorrect statement, except/

a.a. #ax condona#ax condonation operattion operates retrospees retrospectivctively.ely.

b.b. #ax amnesty #ax amnesty is a generis a general pardon inal pardon involving total volving total and unconditiand unconditionalonal

relinquishment of government right to enforce tax collection.relinquishment of government right to enforce tax collection.

c.c. #ax as to inci#ax as to incidence cadence can be specifn be specific or ad valoic or ad valorem.rem.

d.d. 0rofe0rofessiossional tanal tax is a lox is a local tacal tax.x.

39.39. hich of the following depicts the correct final hich of the following depicts the correct final tax/tax/

a.a. 0&55,555 0&55,555 deposits deposits from fofrom foreign banreign ban"s, 0J5,"s, 0J5,555.555.

b.b. 0%55,555 0%55,555 pri-e fopri-e for winninr winning iss g iss orld, orld, 0&5,555.0&5,555.

c.c. 0D5,50D5,555 royal55 royalties froties from boo"s, 0D,m boo"s, 0D,555.555.

d.d. 0?5,555 0?5,555 inter<corporatinter<corporate e dividends, dividends, 0%5,555.0%5,555.

40.40. :ane sold his shares in :ane sold his shares in '' Company, a closely held corporation, directly'' Company, a closely held corporation, directly

to a buyer. #he shares have boo" value of 0955,555 but were sold forto a buyer. #he shares have boo" value of 0955,555 but were sold for

0&?5,555. :ane cost these shares 0%55,555. #he capital gains tax 0&?5,555. :ane cost these shares 0%55,555. #he capital gains tax on theon the

sale issale is

aa.. 0 0 55 cc. . 00%%55,,555555

bb.. 0 0 ??,,555555 dd. . 00%%??,,555555

41.41. *aymond sold his old residence on fear of a ghost that loo"s li"e him.*aymond sold his old residence on fear of a ghost that loo"s li"e him.

#he selling price was 0&,555,555. 2e immediately acquired a new #he selling price was 0&,555,555. 2e immediately acquired a new residenceresidence

utili-ing the whole proceeds of his old utili-ing the whole proceeds of his old residence which were exempt fromresidence which were exempt from

capital gains tax. hile dressing for a date one day, he saw the samecapital gains tax. hile dressing for a date one day, he saw the same

ghost on the mirror. #his prompt him to sell his new residence at aghost on the mirror. #his prompt him to sell his new residence at a

0B55,555 discount from its 0B55,555 discount from its 0&,J55,555 fair value. *aymond immediately0&,J55,555 fair value. *aymond immediately

reacquired another residence for 0&,555,555 beside the residence of hisreacquired another residence for 0&,555,555 beside the residence of his

boy friend at #omay, (a boy friend at #omay, (a #rinidad 'enguet.#rinidad 'enguet.

Compute the capital gains tax on Compute the capital gains tax on the sale of the the sale of the second residence.second residence.

aa.. 0 0 55 cc. . 00%%&&55,,555555

bb.. 00%%55DD,,555555 dd. . 00%%JJJJ,,555555

42.42. >elly, realty dealer, sold the following properties during &5%5>elly, realty dealer, sold the following properties during &5%5

00rrooppeerrttiiees s ssoolldd 22oollddiinng g ppeerriioodd ))aaiinn1166((oossss77

00rriinncciippaal l rreessiiddeennccee ((oonngg<<tteerrmm 0 0 DD5555,,555555

SSttoocc""s s ssoolld d ddiirreeccttlly y tto o bbuuyyeerr SShhoorrtt<<tteerrmm &&5555,,555555

00eerrssoonnaal l ccaarr ((oonngg<<tteerrmm 6 6 JJ55,,55555577

$$ffffiicce e eeqquuiippmmeennttss ((oonngg<<tteerrmm ??55,,555555

''oonnddss, , hheelld d aas s iinnvveessttmmeenntt SShhoorrtt<<tteerrmm DD55,,555555

Compute the net capital gains sub;ect to Compute the net capital gains sub;ect to regular tax.regular tax.

aa.. 0 0 55 cc. . 00FF55,,555555

b.b. 0D0D?,?,555555 d. 0%%5,555d. 0%%5,555

43.43. *on, who died during the *on, who died during the year, has the following income in &5%5year, has the following income in &5%5

00rroocceeeedds s oof f lliiffe e iinnssuurraannccee 00%%,,555555,,555555

++eeaatth h bbeenneeffiitts s rreecceeiivveed d ffrroom m SSSSSS &&5555,,555555

77


Batch – Batch –

PB03PB03


SSeeppaarraattiioon n bbeenneeffiit t ffrroom m eemmppllooyyeerr DD5555,,555555

SSaallaarry y aaccccrruuiinng g bbeeffoorre e ddeeaatthh ??55,,555555

Compute the total exclusion from gross income.Compute the total exclusion from gross income.

aa. 0. 0%%,,555555,,555555 cc. . 00&&,,555555,,555555

bb. 0. 0%%,,&&5555,,555555 dd. . 00&&,,55??55,,555555

44.44. #he boo"s of the #he boo"s of the taxpayer shows the following for &5%%taxpayer shows the following for &5%%

IInntteerreesst t eexxppeennssee 00&&5555,,555555

IInntteerreesst t iinnccoommee, , nneet t oof f ffiinnaal l ttaaxx DD55,,555555

#he deductible interest expense is#he deductible interest expense is

aa.. 00&&5555,,555555 cc. . 00%%BBKK,,555555

bb.. 00%%KK99,,BB5555 dd. . 00%%&&55,,555555

45.45. 2oracio, Inc. provided the following benefits to its employees for 2oracio, Inc. provided the following benefits to its employees for thethe

calendar quarter ending arch 9%, &5%%calendar quarter ending arch 9%, &5%%

)ranted the use of a )ranted the use of a residential unit with fair mar"et value ofresidential unit with fair mar"et value of

0%5,555,555 2oracio for the use of its 0%5,555,555 2oracio for the use of its president. #he unit has rentalpresident. #he unit has rental

value of 09J,555 per month.value of 09J,555 per month.

0urchased a 0BD5,555 car and transferred title to 0urchased a 0BD5,555 car and transferred title to its L0 for finance.its L0 for finance.

+e minimis benefits granted to all employees, 0J55,555.+e minimis benefits granted to all employees, 0J55,555.

'enefits given to ran" and file 'enefits given to ran" and file employees, 0D55,555.employees, 0D55,555.

Compute the fringe benefit tax expense for the Compute the fringe benefit tax expense for the quarter.quarter.

aa.. 0099??JJ,,555555 cc. . 0099&&55,,555555

bb.. 0099JJJJ,,555555 dd. . 0 0 55

46.46. An;o,a sole proprietor, made the An;o,a sole proprietor, made the following contributions during &5%5following contributions during &5%5

CCoonnttrriibbuuttiioonns s tto o pprriioorriitty y aaccttiivviittiieess 00%%5555,,555555

Contributions to accredited non<profitContributions to accredited non<profit

cchhaarriittaabblle e iinnssttiittuuttiioonn %%&&55,,555555

CCoonnttrriibbuuttiioonns s tto o tthhe e ggoovveerrnnmmeennt t ffoor r ppuubblliic c uussee %%5555,,555555

An;o reported 0?55,555 net income after the above An;o reported 0?55,555 net income after the above contributions. Computecontributions. Compute

the deductible contribution expense.the deductible contribution expense.

aa.. 0099&&55,,555555 cc. . 00&&BB%%,,555555

bb.. 009955&&,,555555 dd. . 00&&&&55,,555555

47.47. r. and rs. Cuaresma have the r. and rs. Cuaresma have the following childrenfollowing children

$rio, the familys coo", &9 years $rio, the familys coo", &9 years old deaf<muteold deaf<mute

:ane, &% years old :ane, &% years old and wor"ing as part time and wor"ing as part time office assistantoffice assistant

'abe, %B years old young artist of A'S<C'@'abe, %B years old young artist of A'S<C'@

Lerna, %J year old Lerna, %J year old 'S. 'iology student at 2arvard'S. 'iology student at 2arvard

'ernard, %& year old ath 'ernard, %& year old ath genius studying at the Hniversity of >alingagenius studying at the Hniversity of >alinga

r. and rs. Cuaresma has salaries from r. and rs. Cuaresma has salaries from employment of 0%?5,555 andemployment of 0%?5,555 and

0%55,555, respectively. rs. Cuaresma paid 09,555 0%55,555, respectively. rs. Cuaresma paid 09,555 health insurance forhealth insurance for

the family.the family.

Compute the taxable income of r. and Compute the taxable income of r. and rs. Cuaresma, respectively.rs. Cuaresma, respectively.

aa.. 00KK??,,555555 00??55,,555555 cc. . 00??55,,555555 00JJKK,,BB5555

bb.. 00??55,,555555 00JJKK,,BB5555 dd. . 00&&??,,555555 00??55,,555555

88


Batch – Batch –

PB03PB03


48.48. Intrepid, Inc. showed the following computation of its taxable income inIntrepid, Inc. showed the following computation of its taxable income in

&5%5.&5%5.

))rroosss s iinnccoommee 00JJ,,555555,,555555

((eessss $ $tthheer r ddeedduuccttiioonns s ffrroom gm grroosss s iinnccoommee &&,,555555,,555555

@@eet t ooppeerraattiinng g lloosss s ccaarrrry y oovveer r %%,,555555,,555555

##aaxxaabblle e iinnccoommee 00%%,,555555,,555555

#his was the first time #his was the first time Intrepid, Inc. reports taxable income since itsIntrepid, Inc. reports taxable income since its

inception in &55J. Intrepid, Inc. paid 0&55,555 CI# in inception in &55J. Intrepid, Inc. paid 0&55,555 CI# in prior years.prior years.

+uring the current year, 0&?,555 was withheld by +uring the current year, 0&?,555 was withheld by clients from Intrepidsclients from Intrepids

gross income.gross income.

Compute the &5%5 income tax payable of Compute the &5%5 income tax payable of Intrepid, Inc.Intrepid, Inc.

aa.. 00995555,,555555 cc. . 00%%5555,,555555

b.b. 0&0&K?K?,5,55555 d. 0K?,555d. 0K?,555

49.49. Atlas, Inc. reports the following income in &5%5Atlas, Inc. reports the following income in &5%5

##aaxxaabblle e iinnccoommee 00JJ5555,,555555

@@$$((CC$ $ ccllaaiimmeedd BB5555,,555555

EEssttiimmaatteed d &&55%%5 5 iinnccoomme e ttaax x ppaaiidd %%5555,,555555

CCaappiittaal l ggaaiinnss, , nneet t oof f ttaaxx ??55,,555555

00aassssiivve e iinnccoommee, , nneet t oof f ttaaxx %%DD55,,555555

EExxcclluussiioonns s ffrroom m ggrroosss s iinnccoommee %%&&55,,555555

EExxeemmppt t iinnccoommee &&5555,,555555

++iivviiddeenndds s ddeeccllaarreedd JJ5555,,555555

*easonable *easonable appropriation appropriation 955,555955,555

If Atlas, Inc. was assessed for If Atlas, Inc. was assessed for improperly accumulating profit in &5%5,improperly accumulating profit in &5%5,

how much is the how much is the improperly accumulated earnings tax/improperly accumulated earnings tax/

aa.. 00%%55??,,555555 cc. . 0 0 KK??,,555555

bb.. 00%%5599,,555555 dd. . 0 0 KK99,,555555

50.50. All of these are All of these are exempt from transfer tax, except/exempt from transfer tax, except/

a.a. #ransfer of #ransfer of the usufruct the usufruct in the ownein the owner of the r of the na"ed titlena"ed title

b.b. 0roceeds of 0roceeds of group insurangroup insurance received ce received by heirs oby heirs of the decedf the decedentent

c.c. )eneral renunc)eneral renunciation of siation of share in the hare in the con;ugal propcon;ugal property by theerty by the

surviving spousesurviving spouse

d.d. #rans#ransfer undefer under speciar special power of appol power of appointmeintmentnt

51.51. @on<resident decedent can claim deduction for@on<resident decedent can claim deduction for

a.a. #rans#ransfer ffer for puor public blic purpopurposese

b.b. ededicaical expl expensenseses

c.c. !a!amimily hly homomee

d.d. StaStandandard dedurd deductictionon

52.52. $n @ovember %, &5%5, )wen died $n @ovember %, &5%5, )wen died leaving the following propertiesleaving the following properties

AAgrgriicuculltuturral al lalandnd, i, innheheriritted ed !e!ebbruruarary &y &, &, &555D5D 00%,%,&&5555,,555555

22oouusse e aannd d lloott &&,,555555,,555555

CCaasshh &&,,DD5555,,555555

CCaarr ??5555,,555555

$$tthheer r ppeerrssoonnaal l pprrooppeerrttiiees s %%,,555555,,555555

##oottaal l pprrooppeerrttiieess 00KK,,??5555,,555555

oorrttggaagge e oon n tthhe e aaggrriiccuullttuurraal l llaanndd 0 0 ??5555,,555555

$$tthheer r iinnddeebbtteeddnneessss %%,,&&5555,,555555

++eedduuccttiibblle e eexxppeennssees s aannd d lloossssees s JJ5555,,555555

##oottaal l oorrddiinnaarry y ddeedduuccttiioonnss 00&&,,%%5555,,555555

)wen paid 0955,555 in mortgage before his )wen paid 0955,555 in mortgage before his death. #he prior estate paiddeath. #he prior estate paid

the estate tax on the the estate tax on the agricultural which was then valued at 0%,555,555.agricultural which was then valued at 0%,555,555.

99


Batch – Batch –

PB03PB03


Compute the vanishing deduction.Compute the vanishing deduction.

aa.. 00JJ5599,,&&5555 cc. . 00999955,,JJ5555

bb.. 0099DDDD,,DD5555 dd. . 009955&&,,JJ5555

53.53. r. and rs. 'oromeo got r. and rs. 'oromeo got married on !ebruary %J, &55%. #he spousesmarried on !ebruary %J, &55%. #he spouses

stipulated the con;ugal partnership of gains for their property relation.stipulated the con;ugal partnership of gains for their property relation.

r. 'oromeo died leaving the following propertiesr. 'oromeo died leaving the following properties

0D55,555 cash inclusive of r. 'oromeos 0&55,555 SSS benefits0D55,555 cash inclusive of r. 'oromeos 0&55,555 SSS benefits

0&55,555 claim from insolvent persons, from the salary of 0&55,555 claim from insolvent persons, from the salary of r. 'oromeor. 'oromeo

accruing after marriageaccruing after marriage

0J55,555 second hand car, inherited by rs. 0J55,555 second hand car, inherited by rs. 'oromeo in &555'oromeo in &555

0&,555,555 house and lot, purchased out of 0&,555,555 house and lot, purchased out of r. 'oromeos salaryr. 'oromeos salary

savingssavings

0955,555 pieces of ;ewelry, inherited by r. 'oromeo from 0955,555 pieces of ;ewelry, inherited by r. 'oromeo from his fatherhis father

0?55,555 agricultural land purchased by rs. 'oromeo out of 0?55,555 agricultural land purchased by rs. 'oromeo out of her 0CS$her 0CS$

winnings during the marriagewinnings during the marriage

Compute r. 'oromeos gross Compute r. 'oromeos gross estate.estate.

aa. 0. 0JJ,,&&5555,,555555 cc. . 0099,,DD5555,,555555

bb. 0. 0JJ,,555555,,555555 dd. . 0099,,BB5555,,555555

54.54. hich of the following donation is exempt/hich of the following donation is exempt/

a.a. +onat+onation to the goveion to the governmenrnment for public purt for public purposepose

b.b. +onation +onation to acto accredited credited non<profit non<profit institutionsinstitutions

c.c. +onation +onation to the to the 0hilippine 0hilippine Inventors Inventors CommissionCommission

d.d. +onat+onation to thion to the 'oard oe 'oard of Accouf Accountanntancycy

55.55. #he following are deductible by a non<resident alien donor, except#he following are deductible by a non<resident alien donor, except

a.a. +ow+owry ery exemxemptiptionon

b.b. +onat+onation to the goveion to the governmenrnment for public purt for public purposepose

c.c. IndebIndebtedntedness asess assumed sumed by donby doneeee

d.d. +onation +onation to acto accredited credited non<profit non<profit institutionsinstitutions

56.56. hich of the following is sub;ect to hich of the following is sub;ect to value added tax/value added tax/

a.a. ImporImportatitation of graon of grapes and apes and appleppless

b.b. Sale of husSale of hus"ed rice"ed rice, corn gri, corn grits and molts and molassesasses

c.c. Sale oSale of fire wf fire wood anood and chard charcoalcoal

d.d. SalSale of se of seaweaweedeedss

57.57. All of the following entities are LA#<exempt, except/All of the following entities are LA#<exempt, except/

a.a. #agbilaran #agbilaran Hniversity, Hniversity, a proprietaa proprietary educatiory educational institunal institutiontion

b.b. @otre +@otre +ame, a prame, a proprioprietary hetary hospiospitaltal

c.c. 'an" of 'an" of the 0hilithe 0hilippine Islanppine Islands, a ds, a commercial commercial ban"ban"

d.d. 0hili0hilippinppine Airline Airlines, a domestes, a domestic air carriic air carrierer

58.58. hich is sub;ect to LA#/hich is sub;ect to LA#/

a.a. (ife (ife insuinsurance rance compacompaniesnies

b.b. InterInternatinational aional air or sea car or sea carrierrierr

c.c. Agricultural, Agricultural, credit credit or mor multi<purpose ulti<purpose cooperativecooperative

d.d. $pera$perators otors of hotelf hotels, motes, motels and inls and innsns

59.59. hich is not sub;ect to hich is not sub;ect to output LA#/output LA#/

a.a. +irec+irect expt export sort sales ales of goof goodsods

b.b. Cessation of Cessation of status as status as LA# taxpayer LA# taxpayer with respect with respect to all goto all goods orods or

properties on handproperties on hand

c.c. Sale of resiSale of residentidential dwellal dwelling for 0&,Ding for 0&,D55,5555,5555

d.d. Sale of resSale of residentidential lot foial lot for 0%,?55r 0%,?55,555,555

60.60. hich is not a hich is not a transaction deemed sales/transaction deemed sales/

a.a. ithdrawal of ithdrawal of goods by thgoods by the proprietor e proprietor for personal for personal useuse

b.b. *etir*etiremenement from or cessatt from or cessation of businion of businessess

c.c. +eclaring +eclaring business business properties properties as proas property divperty dividendsidends

d.d. CorpoCorporate merate merger or corger or consolinsolidatidationon

1010


Batch – Batch –

PB03PB03

Documents

BLT Final Pre-boards NCPAR