Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business.
Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 51P
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Question
Which of the following should not be claimed as deductions from gross income?
A. Interest payment on loans for the purchase of machinery and equipment used in business.
B. Salaries and bonuses paid to employees.
C. Discounts given to senior citizens on certain goods and services
D. Advertising expense to maintain some form of goodwill for the taxpayer’s business.
Which of the following is NOT income tax exempt?*
A. BOI-registered enterprise enjoying tax holiday
B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit
C. Forex income in the Philippines of an Offshore Banking Unit
D. Regional area headquarter of a multinational company
E. None of the Above
A resident corporation is one that is:
A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines.
B. Organized under the laws of the Philippines that engages business in a special economic zone;
C. Organized under the laws of a foreign country that sets up a regional headquarter in the Philippines doing product promotion and information dissemination;
D. Organized under the laws of the Philippines that does business in another country.
Which of the following is wrong?
A. Exempt corporations are subject to income tax on their income from unrelated activities.
B. Government-Owned and Controlled Corporations are subject to regular corporate income tax.
C. Exempt corporations who filed late are not subject to penalties because they have no tax due.
D. None of the above.
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