b. Income is recognized when incurred c. Income is recognized when earned d. Income is recognized when declared 10. Under BIR regulations, income in long-term construction contracts is recognized through: a. Percentage of completion method only b. Completed contract method only c. Zero-profit method only d. Either of the above methods at the option of the taxpayer 11. Installment basis of reporting of income shall apply to casual sale of personal property upon compliance with all of the following requisites, except: a. The price exceeds P1,000 b. The property would not be included in the inventory of the taxpayer if on hand at the end of the taxable year c. The price will be paid in at least 3 installments d. Initial payments do no exceed 25% of the selling price 12. Sana is a resident citizen, Tzuyu is a non-resident citizen, while Mina is a resident alien. Who among them is subject to income tax on income derived from sources within and outside the Philippines? a. Sana only b. Sana and Tzuyu only c. Sana and Mina only d. Sana, Tzuyu, and Mina 13. Momo is a resident citizen, Nayeon is a non-resident citizen, while Dahyun is a resident alien. Who among them is subject to income tax only on income derived from sources outside the Philippines? a. Momo only b. Nayeon only c. Dahyun only d. Neither Momo, Nayeon, or Dahyun 14. Big Hit Corporation is a domestic corporation. Which of the following items of income is subject to tax? I. II. a. Gain from sale of personal property in the Philippines Gain from sale of personal property in South Korea I only b. II only c. Both I and II d. Neither I nor II 15. JYP Corporation is a resident foreign corporation. Which of the following item of income is not subject to tax? I. II. a. Income from Philippine operations Income from American operations I only b. II only c. Both I and II d. Neither I nor II 16. The situs of service income is: a. Where the payment for services is made b. Where the service contract was perfected c. Where the services are performed d. Where the party availing of the services is located 17. The situs of income from sale of real property is determined by a. The place where the real property is located b. The place where the registered owner of the real property resides c. The place where the current possessor of the real property has citizenship