Question 11

11.Which of the following is considered or construed as an example of constructive receipt?

• a. Retirement benefit, pensions, gratuities
• b. Fees paid to a public official
• c. Interest coupons that have matured and are payable but have not been cashed
• d. Deposits for rentals to answer for damages, restricted as to use

Question 12

12.Constructive receipt occurs when the money consideration or its equivalent is placed at the control of the person who rendered the service without restrictions by the payor. The following are examples of constructive receipts except

• b. Deposit in banks which are made available to the seller of services without restrictions
• a. A security deposit to insure the faithful performance of certain obligations of the lessee to the lessor
• d. Transfer of the amounts retained by the payor to the account of the contractor
• c. Issuance by the debtor of a notice to offset any debt or obligation and acceptance thereof by the seller as payment for services rendered

Question 13

13.There is constructive receipt of income when:

• a. Payment is credited to payees account
• b. Payment is set aside for the payee, or otherwise made available so the payee may draw upon it anytime, or so the payee could have drawn upon it any time, or so the payee could have drawn upon it during the taxable year if notice of intention to withdraw had been given without substantial limitations
• c. Both a and b
• d. Neither a nor b

Question 14

As a rule, income from whatever source is taxable. Income from whatever source may come from:

I. Gains arising expropriation or property. II. Gambling gains III. Income from illegal business or from embezzlement IV. Recovery of receivables previously written off V. Tax Refunds VI. Compensation for inquiry suffered VII. Gratuitous condonation of debt

• d. I, II, III, IV and V only.
• c. I, IV, V and VI only
• b. I, IV and V only
• a. I and II only