1.The term "Corporation" shall include:

I.Partnerships, no matter how created or Joint stock companies organized

II.Joint accounts (ceuntas en participacion) Associations

III.Insurance companies

IV.Mutual fund companies

V.Regional headquarters of multinational corporations

a)I, II and III only

b)I, II, III, IV and V only

c)All of the above

d)I and II only

2.Hananiah Corporation, a corporation engaged in business in the Philippines and abroad has the following data for the current year:

Gross Income, PhilippinesP975,000

Expenses, Philippines750,000

Gross Income, Malaysia770,000

Expenses, Malaysia630,000

Interest on bank deposit25,000

Determine the income tax due if the corporation is

DomesticRes. ForeignNon-resident Foreim

a)P109,500P72,000P300,000

b)P312,000P515,850P116,800

c)P116,800P72,000P320,000

d)P109,500P67,500P300,000

6-7 A domestic corporation provided the following data for the current vear

Gross profit from salesP3,000,00

Business expenses1,800,000

Dividend from domestic corporation100,000

Dividend income from a resident corporation50,000

Dividend income from a nonresident corporation40,000

Capital gain on sale of land in the Philippines500,000

(SP-P2M; FMV-1.8M; Cost-P1.5M)

Capital gain on sale of land in China200,000

(SP-P1.5M; FMV-1.8M; Cost-P1.3M)

Capital gain on shares of domestic corp.120,000

(direct sale to buyer)

Gain on sale of shares of a domestic corporation50,000

thru a local stock exchange (SP-P200,000; Cost P150,000)

Interest income from:

Notes receivable20,000

Bank deposits (peso accounts)30,000

Bank deposits (foreign currencies)25,000

Treasury bills10,000

6. The total capital gains taxes for the year is

a)P138,000

b)P37,000

c)P121,750

d)P127,000

7. The total final taxes on passive income for the year is

a)P11,750

b)P17,000

c)P9,875

d)P13,000

8. During the current year, a domestic dividends corporation declared and paid to its shareholders as follows:

To Louie, a resident citizenP100,000

To Floyd, a nonresident citizen100,000

To Zeus, a resident alien100,000

To JJ, a nonresident alien engaged in trade in the100,000

Philippines

To Francis, a nonresident alien not engaged in trade100,000

in the Philippines

To Chen, a domestic corporation100,000

To a resident foreign corporation100,000

To a nonresident foreign corporation (with tax sparing)100,000

How much final tax shall be withheld by the corporation?

a)P80,000

b)P95,000

c)P85,000

d)P90,000

9. Interest income received from a depository bank under expanded foreign currency deposit system shall be subject to

RFCNRFCNRA-NETB

a)30%25%25%

b)20%20%20%

c)7 %ExemptExempt

d)Exempt20%20%