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b. Entitled to the payment of the price based on the FMV at the time of delivery.
c. Entitled to the payment of the price based on the FMV at the time of
perfection of the contract of sale
d. Not entitled to payment of the price because the price has not yet been fixed
as agreed upon.
15.The principle of caveat emptor or let the buyer beware will not apply on
a. Sheriffs sale
b. Sales of animals in pairs
c. Auction sales
d. Sales of livestock as condemned
16.A, B , and C are partners. A died together with other passengers of Flight 123 of
Air Port. In spite if As death, which is known to B, B still transacted business with
the firms previous creditor, Y on a matter not related to winding up. Y thought all
the time that the firm had not yet been dissolved because he did not read the
notice of dissolution published in the newspapers. In this case, the partnership is
a. No longer liable to Y since the transaction after dissolution is not connected
with winding up
b. Still liable to Y since he is a previous creditor
c. Still liable to Y since the transaction is within the 3 year liquidation period
d. No longer liable to Y since B can no longer bind the firm due to the death of A.
17.A and B entered into a contract of partnership for the purpose of operating a car
repair shop. A promised to contribute P500,000 on April 24,2010. B as industrial
partner, will manage the business. On April 24,2010, A did not effect contribution.
Thus
a. A is in delay if B makes a demand
b. A is debtor in default
c. B shall be entitled to damages
d. The partnership is dissolved due to lack of object
18.A is the listed owner of 10,000 with par value of P100/share common shares in
ABC corporation. ABC sued A for the payment of As indebtedness of P1M. A
contends that such must be compensated by his shares of stocks with plaintiff
corporation. The contention of A is
a. Valid due to legal compensation
b. Valid by virtue of judicial compensation
c. Untenable since he is not a creditor of a corporation
d. Automatically extinguished if the FMV of the shares is P1M
19. A gave B P50,000 for the purchase of a TV set in behalf of the former, with the
obligation of returning the amount if the TV set was not bought within a week. A
did not buy the item but did not return the amount. An estafa case was filed by A
against B. B pleaded A to drop the case. In return, B issued a promissory note in
favor of A for the amount involved. Is the promissory note valid?
a. No, the consideration of the note is the stifling of the crime of estafa
b. No, the consideration of the note is unlawful
c. Yes, if the note is negotiable because of mutual consent
d. Yes, the note is in consideration of a pre-existing debt.
20.A mortgaged his land to B to guarantee the debt of C. Despite repeated demands,
C failed to pay B prompting the latter to foreclose the mortgage. However, the
proceeds was not sufficient to settle the obligation of C to B. Can B go after A for
the deficiency?
a. Yes, A is a guarantor
b. Yes, the mortgage is binding upon A
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c. No, only the land was offered as security
d. No, the mortgage was not registered with the Registry of Deeds.
21.In the partnership of A, B, C and D, D was designated as the managing partner.
Ds able management prevented the firm in suffer from the economic turbulence
caused by the instability of the PhP. Partners A, B, and C became jealous of Ds
good name. As a result, D was capriciously and whimsically removed as manager
without a valid cause. Is the removal valid?
a. Yes, Ds removal is valid even without consent
b. Yes, provided it is approved by all the other partners
c. No, Ds appointment is irrevocable without a just or lawful cause
d. No, D can only be removed for a valid cause with vote of the partners owning
the controlling interest
22.Circumstances indicating that certain alienation has been made in fraud of
creditor
a. Pactum commissorium
b. Stipulation pour atrui
c. Badges of fraud
d. Upset price
23.A and B entered into a universal partnership of all present property. No stipulation
was made regarding future property. After perfection of the contract, A inherited a
parcel of land and B acquired a car as remuneration for services rendered. The
properties acquired after the protection of the contract belong to
LAND
CAR
a.
A
B
b.
A
partnership
c.
Partnership B
d.
Partnership Partnership
24.When the consent of a party to the contract resulted from force or fear there is
a. Mistake
b. Duress
c. Fraud
d. Undue influence
25.A dissenting stockholder is not entitled to the appraisal right in one of the
following instances
a. Shortening or extending corporate existence
b. Merger or consolidation
c. Change of corporate name
d. Sale of all or substantially all of corporate properties
26.Which of the following statements is false?
a. Treasury shares revert to the unissued shares of the corporation and being in
the treasury they dont have the status of outstanding shares
b. Shares issued without par value shall be deemed fully paid and nonassessable and the holder of such shares shall not be liable to the corporation
or its creditors in respect thereto
c. Redeemable shares may be redeemed regardless of the existence of
unrestricted RE provided such redemption would not cause insolvency or
inability of the corporation to meet its debts as they mature.
d. When par value shares are issued above par, the premium/excess is not to be
considered as part of legal capital
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27.In case the members of the BOD of a corporation still constitute a quorum, and
there are vacancies, who will fill up such vacancies?
REMOVAL RESIGNATION
EXPIRATION OF TERM INCREASE IN
THE NO. OF BOD
a.
Stockholders
BOD
Stockholders
BOD
b.
BOD
BOD
Stockholders
Stockholders
c.
Stockholders
BOD
Stockholders
Stockholders
d.
Stockholders
Stockholders
BOD
Stockholders
28.The defendant in a criminal case for physical injuries arising from tort died before
final judgment. Is his civil liability extinguished?
a. Yes, because death extinguishes personality
b. No, the action will be directed against the administrator of his estate
c. Yes, because the defendant will be deprived of due process of law
d. No, the action will be directed against the creditors of his estate
29.A, B, and C organized ABC and Co., limited, a limited partnership with A as a
general partner, B as a limited partner, and C as an industrial partner,
contributing P200,000, 200,000, and industry respectively. The partnership failed
and after disposing all its assets to pay partnership debts, there still remains a
note payable in the sum of P30,000. Against whom can the creditor demand
payment?
A
B
C
a.
P30,000
0
0
b.
P15,000
0
P15,000
c.
P10,000
P10,000
P10,000
d.
P15,000
P15,000
0
30.Not an element of contract of pledge and mortgage
a. Can stand alone
b. Maybe used to pay the obligation
c. Debtors must be the absolute owners
d. Debtors must have the free disposal of the objects
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b. Pro tanto
c. Conclusive
d. Disputable
34.A signed a blank promissory note payable to B or order. Later, the note was stolen
by B who filled in the amount and then indorsed the note to C and C to D, D to E
and E to F. Can F enforce the note against A?
a. Yes, if F is a HIDC
b. No, even if F is a HIDC
c. Yes, even if F is a holder for value, provided that E is a HIDC
d. No, unless F is a HIDC and F derived his title from E who is a HIDC
35.There is no difference between a HIDC and one who is not, since as regards them,
real and personal defenses may always be raised, if
a. Immediate parties
b. Intervening parties
c. Remote parties
d. Subsequent parties
36.A delivered a promissory note payable to B or bearer. B made a special
indorsement to C and C made a blank indorsement to D and D delivers the note
to E. if A fails to pay, which of the ff. is correct?
a. E can collect from either B, C or D
b. If E collects from C, C can collect from B
c. If E collects from D, D can collect from either B or C
d. If E collects from D, D can collect from C but not from B
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c. Conditional
d. Restrictive
41.Which of the following statements is not correct?
a. When a compulsory heir is given by will less than his legitime, the provisions
of the will should be modified in such a way that he will receive his legitime
b. The CIR may examine the bank deposit of a decedent for the purpose of
determining his gross estate even if the estate did not request for a
compromise on the ground of financial incapacity
c. The P500,000 standard deduction for medical expenses for estate tax
purposes is a legal mechanism to further exempt the less privileged estate
and heirs from tax burden
d. The sharing of heirs in testamentary succession must satisfy the rules on
legitime.
42.A VAT-registered taxpayer acquired the following depreciable assets during the
month:
Equipment Estimated Useful Life Acquisition Cost, VAT exclusive
1
8 years
P800,000
2
5 years
P400,000
3
3 years
P300,000
The creditable input tax for the month is
a. P180,000
b. P3,400
c. P2,800
d. P3,000
TAXABLE INCOME
Year I
Year II
Rent for year 2, collected in year 1
No
yes
Income from year 1 ales, collected in year 2
Yes
Services for year 1, collected in year 2
No
Yes
Income from year 2 sales, collected in year 1
No
Yes
No
44.A stockbroker remitted P11,250 to the BIR representing collection of tax withheld
from clients. The peso volume of his stock transactions from which tax was
withheld is
a. P93,750
b. P112,500
c. P225,000
d. P2,250,000
45.A VAT taxpayer has the ff. data for a particular quarter during the current year
Sale of shares of stock:
Held as inventory
P1,000,000
Held as investment
P500,000
Cost of the shares sold:
Held as inventory
P300,000
Held as investment( thru local stock exchange)
P600,000
The stock transaction tax is
a. P0
b. P1,500
c. P2,500
d. P7,500
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46.A race track bettor won on the ff. bets:
On double, a bet of P200 and dividend of P200 per P20 ticket
On winner take all, a bet of P500 and dividend of P1,000 per P50 ticket
On forecast, a bet of P1,000 and dividend of P100 per P20 ticket
The total percentage tax due from the winnings is
a. P682
b. P1,182
c. P1,280
d. P1,530
47.An invoice issued for the sale of VAT taxable goods shows the ff:
Total invoice amount
P50,400
Less: trade discount of 5%
2,520
Net
P 47,880
If the VAT taxpayer enjoys a partial exemption of 40% including VAT and the
amount is VAT inclusive, how much is the output tax?
a. P3,078
b. P3,216
c. P3,447
d. P3,628
48.In a transfer in contemplation of death, revocable transfer and transfer under a
general power of appointment, there are rules to observe to determine what
amount to include in the gross estate, which is not a rule to observe?
a. If the transfer was in the nature of a bona fide sale for an adequate and full
consideration in money or moneys worth, no value shall be included in the
gross estate
b. If there was no consideration received on the transfer as in donation intervivos, the value to include in the gross estate shall be the excess off the FMV
of the property at the time of transfer
c. If the consideration received on the transfer was less than adequate and full,
the value to include in the gross estate shall be the excess of the FMV of the
property at the time of decedents death over the consideration received.
d. If there was no consideration received on the transfer as in donation mortis
causa, the value to include in the gross estate shall be the FMV of the property
at the time of the decedents death
49.For proceeds of life insurance not to constitute part of the gross estate
a. Must have been taken out by the decedent upon his life
b. Must have designated the estate of the decedent as irrevocable beneficiary
c. Must have designated a 3rd person as, the decedents executor or
administrator as the irrevocable beneficiary
d. Must have designated a 3rd person other than the estate, the decedents
executor or administrator as the irrevocable beneficiary
50.Which of the ff. is not true regarding a claim against insolvent person?
a. The decedents claim is deductible in full because the debtors liabilities
exceed his remaining assets
b. The decedents claim must be included in full in the gross estate
c. The decedents claim which cannot be collected is deductible according to the
ratio of the debtors assets to liabilities
d. Claim against insolvent person is a claim against a person whose assets are
not sufficient to pay his liabilities
51.Which of the following statements is false?
a. Donations can be made to conceived and unborn children
b. The first P100,00 donation is exempted from donors tax
c. Juridical persons can also make donations
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d. Husband and wife can make moderate donations to each other on account of
family celebration
52.Which of the following is not directly reducing the inheritance?
a. Standard deduction
b. Claims against the estate
c. Unpaid mortgage
d. Funeral expenses
53.Which of the ff. may reduce the taxable estate but not the inheritance?
a. Funeral expenses
b. Losses
c. Judicial expense
d. Family home
54.A filed his ITR for calendar year 2007 on March 20,2008. When is the last day for
the BIR to collect assuming A did not pay the tax due upon filing?
a. March 20, 2011
b. April 15, 2011
c. April 15, 2013
d. March 20, 2013
55.Furthermore, assuming A filed his ITR on April 20, 2008 and the return is not
fraudulent, when is the last day for the BIR to make an assessment?
a. April 20, 2011
b. April 15, 2011
c. April 20, 2013
d. April 15, 2013
56.Using the data above, if the BIR issued a deficiency income tax assessment on
March 10, 2010, when is the last day for the BIR to collect>
a. March 10, 2013
b. April 15, 2013
c. March 10, 2015
d. April 15, 2015
57.Which of the ff. is subject to VAT?
a. Importation of personal or household effects belonging to the residents of the
Philippines returning from abroad and non-resident citizen coming to resettle
in the Philippines where such goods were subjected to custom duties
b. Importation of passenger or cargo vessel and aircrafts, including engine,
equipment and spare parts thereof for domestic or intl transport operation
c. Importation of fuel, goods, and supplies by persons engaged in intl shipping
or air transport operations
d. Sale of real property not primarily held for sale to customers or held for lease
in the ordinary course of business
58.Which of the ff. is exempt from VAT?
a. Sale of passenger or cargo vessels and aircraft, including engine, equipment
and spare parts thereof for domestic or intl transport operation
b. Sale of professional instruments and implements wearing apparel, domestic
animals and personal household effect
c. Sale of fuel, goods, and supplies by persons engaged in intl shipping or air
transport operations
d. Importation by persons who are not VAT registered.
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59.If the required documentary stamp is not affixed on a document, one of the ff. is
correct. The document
a. Will be notarized because the document is still valid
b. Will not be admitted as evidence in court because the document is void
c. Will not be registered in the proper registry even if the document is valid
d. Is still valid and if already notarized should be registered and admitted as
evidence in court
60.On January 2, 2009, A died, survived by his wife B, whom he married 10 years
ago, his 2 legitimate children by a former marriage and his 2 legitimate children
with wife B. the eldest child was born on January 1, 1990. As estate w/c is under
administration shows the ff. on January 2, 2009:
A
B
Total
A. Property owned before the marriage
P2,000,000 P3,000,000
P5,000,000
B. Income of property A- earned during marriage
500,000
750,000
1,250,000
C. Property acquired during marriage- gratuitous 1,900,000
2,200,000
4,100,000
D. Income of property C-during marriage
300,000
350,000
650,000
E. Property acquired during marriage-onerous
4,000,000 2,000,000
6,000,000
F. Income of property E- during marriage
800,000
200,000
1,000,000
G. Proceeds of life insurance where the designated beneficiary is:
1. His younger brother- revocable
1,200,000
2. His mother- irrevocable
800,000
The ff. occurred in 2009:
a. The properties comprising the gross estate of A realized a gross income
of 20%
b. The expenses chargeable against the income of the estate is 40% of
gross income
c. Distribution to his 4 children in equal shares:
1. From the income of the estate (P100,000 each)- P400,000
2. From the property of the estate (P25,000 each)- P100,000
d. Receipt of proceeds of insurance on property owned before the
marriage which were destroyed by fire on March 31, 2009:
Spouses
FMV-Mar.31, 2009
Insurance Recovery
A
P2,200,000
P1,800,000
B
2,800,000
2,500,000
e. Deductions claimed by the estate:
1. Funeral expenses (40% was covered by a memorial plan)
P250,000
2. Unpaid mortgage on property acquired during marriage
by onerous title:
a. By A (family home)
800,000
b. By B (rest house)
200,000
3. Claims against the estate
100,000
4. The property acquired during marriage- by gratuitous title were
acquired thru inheritance:
10
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P15,450,000
P16,650,000
P15,100,000
P16,750,000
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August
5
400,000
3 years
20
500,000
4 years
September 10
500,000
4 years
15
600,000
6 years
The July 2 acquisition was retired in September. The input tax for July is
a. P4,275
b. P5,500
c. P63,000
d. P240,000
No
No
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c. Subject to 12% VAT
d. Subject to percentage tax
74.On April 15,2008, A filed his ITR for his 2007 income and paid the tax due
thereon. In 2009, A discovered that he made an overpayment in his ITR. He filed a
written claim for refund of tax erroneously collected with the CIR on October 1,
2009. On April 14, 2010, without receiving a decision on his claim for refund, A
filed in the CTA a petition for review on his claim for refund of tax erroneously
collected. Which of the ff. is correct?
a. The CTA did not acquire jurisdiction over the petition for review because the
appeal is premature, there being no decision yet on said claim for refund
b. The CTAs jurisdiction is to review by appeal decisions of the BIR Commissioner
so if there is no decision, there is nothing to review
c. The CTA acquired jurisdiction over the petition since it is the right of a
taxpayer to go to the CTA with or without decision rendered by the BIR
Commissioner
d. The CTA acquired jurisdiction over the petition since as the peremptory period
of 2 years within which a claim for refund is about to expire and the failure of
the CIR to act on the claim is tantamount to denial of a claim
75.Donors tax is a (an)
a. Progressive tax
b. Proportional tax
c. Property tax
d. Excise tax
76.Which of the ff. is a stranger to the donor? If the donee is the
a. Grandfather of the donors great grandfather
b. Granddaughter of the sister of the donors mother
c. Grandson of the donors half-sister
d. Brother of the donors grandmother
77.Statement I- If the estate is settled extra-judicially, the estate tax return should
be filed within 2 years from date of the death of decedent
Statement II- If the estate is settled judicially, the estate tax return should be
filed within 5 years from date of the death of decedent
Statement III- The VAT should be filed within 25 days from the close of the
taxable month
Statement IV- The donors tax return is not required if the net gift does not
exceed P100,000
a. All are true
b. All are false
c. Two are true
d. One is true
78.Sales during the year:
Subject to:
A
B
12%
P750,000
P800,000
0%
750,000
800,000
Exempt
1,000,000
400,000
Who is/are subject to VAT?
a. All
b. D
C
P800,000
D
P700,000
700,000
800,000
800,000
13
700,000
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c. A
d. None
79.Spouses A and B sold their family home, a capital asset for P5M. It was acquired
in 1980 at P2M. The FMV as determined by the BIR is P6M but the FMV as shown
in the schedule of values of the City Assessor is P5,500,000. Later, the spouses
utilized P4M for the acquisition of their new family home. The capital gains tax
due is
a. P72,000
b. P60,000
c. P300,000
d. P360,000
80.Using the above data, the cost basis of the new family home is
a. P4,000,000
b. P1,600,000
c. P1,000,000
d. P400,000
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04/24/10
21.A
22.C
23.A
24.B
25.C
26.A
27.C
28.B
29.B
30.A
31.A
32.B
33.C
34.B
35.A
36.C
37.D
38.C
39.D
40.B
41.C
42.B
43.A
44.D
45.C
46.B
47.B
48.B
49.D
50.A
51.B
52.A
53.D
54.B
55.A
56.C
57.A
58.A
59.C
60.D
81.
82.
83.
15
61.A
62.C
63.A
64.B
65.A
66.B
67.D
68.C
69.B
70.C
71.C
72.C
73.B
74.D
75.D
76.B
77.B
78.B
79.A
80.B