ampongan solman

8/20/2019 Ampongan Solman

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SOLUTIONS MANUAL FOR USE WITH

INCOME TAXATION 10e

EXERCISE 1-1 EXERCISE 1-3

1.

D 11

.

K

1.

F 11

.

T 21

.

F 31

.

F

2.F, K 12

. J

2.F 12

.T 22

.T 32

.F

3.

I 13.

A 3.

F 13.

F 23.

T 33.

T

4. J

4.F 14

.F 24

.T 34

.T

5. J

5.F 15

.F 25

.T 35

.T

6.

B 6.

F 16.

F 26.

T

7.E

7.F 17

.T 27

.F

8.H

8.F 18

.T 28

.F

9.

C 9.

T 19.

T 29.

F

10.

M 10.

T 20.

T 30.

T

EXERCISE 1–2

1. Excise 6. Lie!"##$2. C#%%&'i() 7. T#""3. D&e *+#cess 8. c-##"4. D#'#+s (/x 9. ee'&e5. -i(i' 10. T/x /%'es()

E L

S L L

H I O

I F C O M M U N I T Y

F E X R T

T B E X E S

I L A V EN O T E N

G O S N M

D R U A

S C H O O L E X

N A

O T

D S S E C O R P E U D


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EXERCISE 1 – 4 EXERCISE 1 – 5

1. B 11. A 1. A 11

.

B 2

1.

A 31

.

D

2. C 12. B 2. A 12.

A 22.

A 32.

C

3. C 13. D 3. D 13.

A 23.

D 33.

B

4. B 14. A 4. B 14.

C 24.

D 34.

A

5. C 15. A 5. B 15.

C 25.

C 35.

A

6. D 16. C 6. C 16.

B 26.

D

7. A 17. C 7. B 17.

D 27.

C

8. C 18. C 8. C 18.

A 28.

D

9. C 19. D 9. B 19.

C 29.

B

10. C 20. C 10

.

C 20

.

B 3

0.

C

EXERCISE 1–6

The claim of the Commissioner should be denied.

Rule-making power must be confined to details for regulating the mode or proceedings inorder to carry into effect the law as has been enacted, and it cannot be extended nor can it expandthe statutory requirements or to embrace matters not covered by the statute.

dministrative regulations must always be in harmony with the provisions of the law becauseany resulting discrepancy between the two will always be resolved in favor of the basic law.

EXERCISE 1–7

!"#. $ouble taxation means taxing twice the same property twice when it should be taxedonly once% that is &taxing the same person twice by the same 'urisdiction for the same thing.( )therwise described as &direct duplicate taxation,( the two taxes must be imposed on the samesub'ect matter, for the same purpose, by the same taxing authority, within the same 'urisdiction,during the same taxing period% and the taxes must be of the same kind or character.

There is indeed double taxation if respondent is sub'ected to the taxes under both #ections *+and * of Tax )rdinance o. /+, since these are being imposed0 1*2 on the same sub'ect matter 3the privilege of doing business in the City of 4anila% 12 for the same purpose 3 to make personsconducting business within the City of 4anila to contribute to city revenues% 152 by the same taxing


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authority 3 the City of 4anila% 1+2 within the same taxing 'urisdiction 3within the territorial 'urisdictionof the City of 4anila% 162 for the same taxing periods 3 per calendar year% and 172 of the same kind orcharacter 3 a local business tax imposed on gross sales or receipts of the business.

4oreover, #ection *+51h2 may be imposed only on businesses that are sub'ect to excise tax,8T, or percentage tax under the 9RC, and that are &not otherwise specified in precedingparagraphs.(

EXERCISE 1- 8

The law is constitutional. The tax is levied with a regulatory purpose 3 to provide means forthe rehabilitation and stabili:ation of the threatened sugar industry. s the protection and promotionof the sugar industry is a matter of public concern, the ;egislature may determine within reasonablebounds what is necessary for its protection and expedient for its promotion. inance.

4oreover, interpretation of officers, of laws which are entrusted to their administration, isentitled to great respect and have in their favor a presumption of legality (Anscor Container Corporation v. CTA, GR No. 3805, August 3!, !""8#.

. 9 will inform him that a compromise is not allowed anymore because the case had already beenfiled in the Regional Trial Court. The moment the case is filed in court, it cannot be sub'ect tocompromise anymore.

5. ?iolo is correct. @nder R *+A6 the B9R Commissioner=s power to inquire into a taxpayer=s bank

deposit is not in conflict with the Bank #ecrecy ;aw. Based on the provision of the 9RC, theCommissioner is authori:ed to inquire into bank deposit0

a. To determine the gross estate of a decedent% andb. hen a taxpayer applies for a compromise of his tax liability by reason of financial incapacity.

+. 9 will request for a compromise of the assessed tax on ground that the financial position of thetaxpayer demonstrates clear inability to pay the assessed tax. Clearly, even if the case is decidedagainst the taxpayer, he will not have the money to pay the assessed tax. 9t is therefore anexercise in futility to forego with the case against him.

6. The claim for refund should be denied on ground of prescription. Recovery of taxes erroneouslypaid or illegally collected are allowed only when filed within the two-year prescriptive period. Thetwo-year period should be computed from the time of actual filing of the d'ustment Return andfinal payment of the tax ($%il. &an' o Co))unications vs. C*R, 30 +CRA !#.

Thus, the two year prescriptive period lapsed on pril 6, A**.

7. The Commissioner may not grant the refund when there is a deficiency tax assessment against theclaimant-taxpayer. To award such refund despite the existence of the deficiency assessment is anabsurdity and a polarity in conceptual effects (Co))issioner vs. CA and Cit-trust &an'ing Corp,3 +CRA 38#.

. !es. here a corporation paid quarterly corporate income taxes in any of the first three quartersduring the taxable year but incurs a net loss during the taxable year, the two-year period for the


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filing of claim for refund or credit shall be counted from the date of the filing of the annualcorporate income tax return (Co))issioner vs. T/ +ales, 05 +CRA !8#.

D. a. The counting of the two 12 year period commences to run from the date of final payment.Considering that the final payment was made on Euly /, A*, the prescriptive period will endon Euly /, A*+.

b. ugusto has thirty days from receipt of the decision of the C9R to file an appeal with the CT.

#ince it was received on 4ay *6, A*+, he has until Eune *+, A*+ to file his appeal with theCT.

c.


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the bank deposits of the taxpayer on the following cases0

a. To determine the gross estate of the decedent.b. here the taxpayer has filed an application for compromise of his tax liability by reason of

financial incapacity% andc. hen there is a waiver duly signed by the taxpayer.

** C

Revenue udit 4emorandum )rder, Revenue #pecial )rder and Revenue Travel ssignment)rder are not exercises of legislative power.

Revenue Regulations are more detailed interpretation of the tax laws. 9t is issued by the#ecretary of >inance, upon the recommendation of the Commissioner of 9nternal Revenue.

*. $

The case cannot be compromised anymore if the case is filed already before the courts of 'ustice and if the case involves fraud.

*5. B

*+. B

Corporations are not allowed to be registered by the #ecurities and "xchange Commission forthe purpose of practice of public accountancy 1R //D2.

*6. C

withholding agent is a party in interest having sufficient legal interest to bring a suit for

refund of taxes illegally collected from him.

The claim for refund must be filed with the C9R before any suit in Court of Tax ppeals iscommenced.

The computation of the two-year period starts from the filing of the final ad'ustment returnbecause it was only then that it could be ascertained whether the taxpayer made profits orincurred losses in its business operations.

EXERCISE 2-3*. $

The last day to claim refund is Eune 5A, A*5 or two 12 years from the date of final payment.

.

Taxpayers are given 5A days from receipt of B9R decision but within two 12 years from thedate of payment, to appeal the decision to the Court of Tax ppeals.

5. $

hen the -year period is about to lapse, the suit or proceeding must be started in the Courtof Tax ppeals without awaiting for the decision of the Commissioner, or the 5A-daysreglementary period from receipt of decision to appeal to the CT.

+. C

The best action is to file an appeal with the Court of Tax ppeals before the lapse of the -year prescriptive period, without waiting for the decision of the Commissioner of 9nternalRevenue.

6. $

The counting of the 5A day prescriptive period for appeal starts from the date of receipt of thedecision because it would be unfair on the part of the taxpayer to include in the counting the


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date while the decision is still in the table of the Commissioner or it is still in transit.

EXERCISE 2–4

T-e *+#*e+ */+() (# &es(i#', #+ see / +e&'$ # /' i'$i+ec( (/x is (-es(/(&(#+) (/x*/)e+, (-e *e+s#' #' -#% (-e (/x is i%*#se$ !) "/ /'$ -# */i$ (-es/%e ee' i -e s-i(s (-e !&+$e' (-e+e# (# /'#(-e+. Ee' i e(+#' */sse$ #' (#

i"/i+ (-e !&+$e' # (-e (/x, (-e /$$i(i#'/" /%#&'( !i""e$ (# i"/i+ #+ e( &e" is'#( / (/x !&( */+( # (-e *+ice -ic- i"/i+ -/$ (# */) /s / *&+c-/se+.

A' excise (/x is /' i'$i+ec( (/x -e+e (-e (/x !&+$e' c/' !e s-i(e$ (# (-ec&s(#%e+ !&( (-e (/x "i/!i"i() +e%/i's i(- (-e %/'&/c(&+e+ #+ *+#$&ce+.

T-e excise (/xes /+e c#""ec(e$ +#% %/'&/c(&+e+s #+ *+#$&ce+s !e#+e+e%#/" # (-e $#%es(ic *+#$&c(s +#% (-e *"/ce # *+#$&c(i#'. A"(-#&- excise(/xes c/' !e c#'si$e+e$ /s (/xes #' *+#$&c(i#', (-e) /+e +e/"") (/xes #' *+#*e+()/s (-e) /+e i%*#se$ #' ce+(/i' s*ecie$ ##$s.

-e' e(+#' +e%#es i(s *e(+#"e&% *+#$&c(s +#% i(s +e'e+) i' Li%/),B/(//', i( */)s (-e excise (/xes $&e #' (-e *e(+#"e&% *+#$&c(s (-&s +e%#e$.e(+#', /s %/'&/c(&+e+ #+ *+#$&ce+, is (-e *e+s#' "i/!"e #+ (-e */)%e'( # (-e

excise (/x /s s-#' i' (-e Excise T/x e(&+'s "e$ i(- (-e BI. (/(e$ #(-e+ise,e(+#' is (-e (/x*/)e+ (-/( is *+i%/+i"), $i+ec(") /'$ "e/"") "i/!"e #+ (-e */)%e'(# (-e excise (/xes. H#ee+, si'ce /' excise (/x is /' i'$i+ec( (/x, e(+#' c/'(+/'se+ (# i(s c&s(#%e+s (-e /%#&'( # (-e excise (/x */i$ !) (+e/(i' i( /s */+( # (-e c#s( # (-e ##$s /'$ (/ci' i( #' (# (-e se""i' *+ice.

i"/i+ /s (-e *&+c-/se+ /'$ e'$ c#'s&%e+, &"(i%/(e") !e/+s (-e (/x !&+$e',!&( (-is $#es '#( (+/'s#+% *e(i(i#'e+s s(/(&s i'(# / s(/(&(#+) (/x*/)e+.

I' (-e +e&'$ # i'$i+ec( (/xes, (-e s(/(&(#+) (/x*/)e+ is (-e *+#*e+ */+() -#c/' c"/i% (-e +e&'$.

e(i(i#'e+ s-#&"$ i'#e i(s (/x exe%*(i#' (# e(+#' !e#+e !&)i' (-e /i/(i#'

e( &e". e(+#', -#ee+, +e%/i's (-e s(/(&(#+) (/x*/)e+ #' (-#se excise (/xes.

EXERCISE 3-1

1. T-e */+('e+s-i* is '#( "i/!"e (# */) i'c#%e (/x c#'si$e+i' (-/( '# i'c#%e /se/+'e$ $&+i' (-e )e/+. T-e i'c+e/se i' (-e 'e( /sse(s /s c/&se$ !) (-e/$$i(i#'/" c#'(+i!&(i#' # 10,000 !) (-e */+('e+s.

2. T-e c#'(e'(i#' # J&$e :i(//' is +#'. /)%e'( # i'c#%e (/x !) &$es is'#( c#e+e$ !) (-e c#'s(i(&(i#'/" *+#(ec(i#' //i's( $i%i'&(i#' # (-ei+s/"/+ies $&+i' (-ei+ c#'(i'&/'ce i' #;ice. I'c#%e (/x/(i#' #+ (-e %e%!e+s# (-e &$ici/+) ie s&!s(/'ce (# (-e e&/"i() /%#' (-e (-+ee !+/'c-es # (-e#e+'%e'( c#'sis(i' # (-e exec&(ie, "eis"/(ie /'$ (-e &$ici/+).

3. /. F/ce /"&e 100,000 Less< Disc#&'( =100,000 x 20>? 20,000 I'c#%e s&!ec( (# (/x@F/i+ $isc#&'(e$

/"&e 80,000

!. Disc#&'( 20,000 x D&e i' 2011 50>


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I'c#%e s&!ec( (# (/x, 2011 10,000

c. I'c#%e +e*#+(/!"e i' 2012 = 20,000 x50>?

10,000

4. -e'ee+ / s(#c-#"$e+ is i'$e!(e$ (# (-e c#+*#+/(i#' /'$ s/i$ c+e$i(#+c#+*#+/(i#' $eci$es (# c#'$#'e (-e $e!(, s&c- c#'$#'/(i#' -/s (-e e;ec( # /*/)%e'( # $ii$e'$ (# (-e s(#c-#"$e+. T-e+e#+e, (-e c#'$#'/(i#' %/$e !)L&x C#+*#+/(i#' (# E$&/+$# is i' e;ec( / */)%e'( # $ii$e'$ !) L&xC#+*#+/(i#' (# E$&/+$#.

I E$&/+$# is (-e c+e$i(#+ -i"e L&x C#+*#+/(i#' is (-e $e!(#+ /'$ (-e#+%e+ $eci$es (# c#'$#'e (-e $e!( # (-e "/((e+, (-e /%#&'( is c#'si$e+e$ /s/' /$$i(i#'/" i'es(%e'( !) E$&/+$# (# (-e c#+*#+/(i#'.

5. Hi"/+i# is '#( +e&i+e$ (# +e*#+( i'c#%e #' (-e c#'$#'/(i#' c#'si$e+i' (-/((-e c#'$#'/(i#' # $e!( /s ie' i(-#&( +e&i+i' -i% (# +e'$e+ se+ices.T-e 50,000 c#'s(i(&(es %#+e /s / (/x/!"e i( +/(-e+ (-/' /s / (/x/!"e i'c#%e.

6. es (-e /%#&'( # 30,000 is i' (-e '/(&+e # / +e%&'e+/(#+) $#'/(i#' i( iss&!ec( (# i'c#%e (/x.

7. '$e+ (-e (/x !e'e( +&"e, -e'ee+ / !/$ $e!( is c"/i%e$ /s $e$&c(i#' +#%+#ss i'c#%e /'$ i( +es&"(e$ (# / +e$&c(i#' i' i(s (/x "i/!i"i(), (-e +ec#e+) # s&c- is s&!ec( (# (/x. T-&s, -e' /%c# +#(e #; (-e /cc#&'(s /'$ c"/i%e$ i(/s $e$&c(i#' +#% +#ss i'c#%e, (-e+e /s / c#++es*#'$i' +e$&c(i#' i' (-e(/x "i/!i"i(). I( !ei' (-e c/se, (-e +ec#e+) # s&c- $e!( is (/x/!"e (# AMC!&( #'") &* (# 90,000, (-e /%#&'( (-/( -/s !ee' !e'eci/" (# AMC.

8. /. /"&e/$$e$ (/x '#( (/x/!"e!. e/" *+#*e+() (/x (/x/!"ec. I'c#%e (/x '#( (/x/!"e$. (#c (+/'s/c(i#' (/x '#( (/x/!"ee. *eci/" /ssess%e'( '#( (/x/!"e. cc&*/(i#' (/x (/x/!"e. Es(/(e (/x '#( (/x/!"e-. I'c#%e (/x */i$ (# / #+ei'

c#&'(+) (/x/!"e i c"/i%e$ /s $e$&c(i#'

i. C#%%&'i() (/x (/x/!"e . Excise (/x (/x/!"e

9. /. es, (-e $ii$e'$s /+e s&!ec( (# / '/" (/x # 10>.

!. T-e $ii$e'$s */i$ /+e i' e;ec( *+#*e+() $ii$e'$s. T-e) /+e s&!ec( (# /'/" (/x # 10>c. T-e $ii$e'$s */i$ /+e /c(&/"") s(#c $ii$e'$s. T-e) /+e '#( s&!ec( (# (/x.$. A"(-#&- s#%e s(#c-#"$e+s e+e */i$ s(#c $ii$e'$s, si'ce #(-e+s e+e

*/i$ c/s-, s&c- $ec"/+/(i#' /'$ */)%e'( +es&"(e$ (# / c-/'e i'*+#*#+(i#'/(e i'(e+es(. T-&s, !#(- (-e s(#c-#"$e+s -# e+e */i$ s(#cs/'$ c/s- $ii$e'$s /+e s&!ec( (# '/" (/x.

10. /. Dii$e'$s +eceie$ +#% $#%es(ic G '#( (/x/!"e


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!. Dii$e'$s +eceie$ !) +esi$e'( #+ei' +#%$#%es(ic

'#( (/x/!"e

c. Dii$e'$s +eceie$ !) '#'+esi$e'( #+ei' c#+*#+/(i#' +#% $#%es(ic G 15>'/" (/x i (-e c#&'(+) i' -ic- (-e '#'+esi$e'( #+ei' c#+*#+/(i#' is$#%ici"e$ s-/"" /""# (/x c+e$i( # 15> i' i(s i'c#%e (/x */)/!"e i' s&c-#+ei' c#&'(+).

11. /.

Miss &*s&* is e'(i("e$ (# 10> # (-e /"&e # c#'sc/(e$ s%&"e$ ##$s!&( '#( excee$i' 1,000,000. i'ce 10> # (-e /"&e # (-e s%&"e$##$s is 10,000,000 =100,000,000 x 10>?, Miss &*s&* is e'(i("e$ #'") (#1 %i""i#' /s (/x i'#+%e+s +e/+$.

!. T-e +e/+$ +eceie$ !) Miss &*s&* is s&!ec( (# / '/" i(--#"$i' (/x # 10>. He'ce, (-e /%#&'( # (/x (# !e i(--e"$ i' /#+ # (-e #e+'%e'( is100,000 =1,000,000 x 10>?.

12. /.

'$e+ &(+i-( Me(-#$, (-e "ess#+ is +e&i+e$ (# +e*#+( /s i'c#%e (-e /i+%/+e( /"&e # (-e i%*+#e%e'( /( (-e (i%e # c#%*"e(i#'. T-&s, s-e -/s(# +e*#+( /' i'c#%e # 100,000 #' (-e "e/se-#"$ i%*+#e%e'( /'$ 48,000

=4,000 x 12? #' (-e +e'(, #+ / (#(/" /%#&'( # 148,000.

!. e'( =4,000 x 12? 48,000

A$$< I'c#%e #' "e/se-#"$ i%*+#e%e'( C#s( # i%*+#e%e'( 100,000 Less< Acc&%&"/(e$ $e*+eci/(i#'=100,000@25 x 18.5?

74,000

B## /"&e, e'$ # "e/se 26,000 =26,000 @ 18.5 x ? 703

48,703

c.

e'( = 4,000 x 6? 24,000

Le/se-#"$ i%*+#e%e'(< C#s( 100,000

Less< De*+eci/(i#' =7@1@09 G 6@30@10?=100,000 @ 25?

4,000

B## /"&e &*#' (e+%i'/(i#' 96,000 Less< A%#&'( /"+e/$) +e*#+(e$ /si'c#%e

703 95,297

I'c#%e # "ess#+ i' 2013 119,297

EXERCISE 3 – 2


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* T 7 T ** >

T > * >

5 T D T *5 >

+ T / > *+ T

6 > *A T *6 >

3-3 TAX BENEFIT RULE

3-

3.1:

ANSWER: B

C/se 1 G 40,000C/se 2 20,000C/se 3 40,000C/se 4 70,000 =85,000 G 15,000?

3-

3.2:

(1) ANSWER: D

+#ss *+#( 800,000

A$$< B/$ $e!(s+ec#e+e$

30,000

T#(/" 830,000

Less< Acc#&'(s +i((e'#;

50,000

De$&c(i!"eex*e'ses

440,000 490,000

:e( i'c#%e !e#+ei'c#%e (/x

340,000

3-

3.3:

(2) ANSWER: D

+#ss i'c#%e !e#+e(/xes

90,000

Less< De$&c(i!"e (/xes A%&se%e'( (/x 80,000 L#c/" !&si'ess(/xes

40,000 120,000

:e( "#ss = 30,000?

ANSWER: B

A%&se%e'( (/x 80,0


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00L#c/" !&si'ess (/xes 8,500T/x/!"e i'c#%e 88,500

EXERCISES 3 – 3.4. MULTIPLE CHOICE

THEORY

1. ANSWER: C

T-is is /' /**"ic/(i#' # (-e (/x !e'e( +&"e. '$e+ (-is*+i'ci*"e, (-e +ec#e+) # !/$ $e!( *+ei#&s") $e$&c(e$ is (/x/!"e i /((-e (i%e i( /s c"/i%e$ /s $e$&c(i#', (-e+e /s / c#++es*#'$i'+e$&c(i#' i' (-e i'c#%e (/x "i/!i"i() # (-e (/x*/)e+.

2. ANSWER: C

ee (-e ex*"/'/(#+) '#(es i' :#. 11 /!#e #' (/x !e'e( +&"e.

3. ANSWER: D

T-e c/*i(/" /i's (/x is /' i'c#%e (/x, -i"e (-e (/x */i$ #'i'(e+ i#s $#'/(i#' is / $#'#+s (/x. T-ese (/xes, i'c"&$i' (-e /"&e/$$e$ (/x, /+e '#( $e$&c(i!"e +#% +#ss i'c#%e +#% *&+*#ses #c#%*&(i' (-e i'c#%e (/x. T-&s, (-e +e&'$ +eceie$ +#% (-ese(/xes /+e '#( s&!ec( (# (/x.

T-e c#%%&'i() (/x */i$ !) / c#+*#+/(i#' is / $e$&c(i!"e i(e%+#% +#ss i'c#%e. He'ce, / +e&'$ +eceie$ is (/x/!"e.

EXERCISE 3-4

3-

4.1:

LEASEHOLD

IMPROVEMENT

1. ANSWER: BC/s- +eceie$ 120,000T/x */i$ !) "essee 3,000I'c#%e (# !e +e*#+(e$ i' 2011 123,000

T-e "ess#+ s-/"" /**") c/s- %e(-#$ #' *+e*/)%e'( # +e'(/" ee' i i( is&si' /cc+&/" %e(-#$ # /cc#&'(i'.

2. ANSWER: De'( i'c#%e =5,000 x 12? 60,000Le/se-#"$ i%*+#e%e'( 1,800,000T/x */i$ !) "essee 3,000I'c#%e (# !e +e*#+(e$ &'$e+ #&(+i-(%e(-#$

1,863,000


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3. ANSWER: A e'( i'c#%e 60,000T/x */i$ !) "essee 3,000Le/se-#"$ i%*+#e%e'(< C#s( 1,800,0

00 Less< Acc&%&"/(e$ $e*+eci/(i#' =1,800,000@30 x 17.5? 1,050,0

00 B## /"&e, e'$ # "e/se 750,00

0 =750,[email protected]? x 6@12 21,429I'c#%e (# !e +e*#+(e$ &'$e+ s*+e/$#&(%e(-#$

84,429

4. ANSWER: C

E;ec(ie J/'&/+) 1, 2014, (-e "/'$ /'$ (-e !&i"$i' s-/"" !e exe%*( +#%+e/" es(/(e (/x !ec/&se i( is '# !ei' &se$ /c(&/""), $i+ec(") /'$ exc"&sie")

#+ e$&c/(i#'/" *&+*#se. A"" /ssess%e'(s #+ +e/ssess%e'(s %/$e /(e+ (-e 1s( $/) # J/'&/+) # /') )e/+ s-/"" (/e e;ec( #' (-e 1 s( $/) # J/'&/+) # (-e s&ccee$i' )e/+=ec. 221, L#c/" #e+'%e'( C#$e # 1991?.

5. ANSWER: Be'( ex*e'se 60,000De*+eci/(i#' =1,800,[email protected]? 102,857De$&c(i!"e ex*e'se 162,857

6. ANSWER: BC/s- +eceie$ 60,000Le/se-#"$ i%*+#e%e'( =750,[email protected]? 42,857

102,857:#(e<

:# +e/" *+#*e+() (/x i"" !e s-#&"$e+e$ !) (-e "essee s(/+(i' 2014!ec/&se (-e "/'$ /'$ (-e !&i"$i' s-/"" !e exe%*( +#% +e/" es(/(e (/xc#'si$e+i' (-/( i( is '# !ei' &se$ /c(&/""), $i+ec(") /'$ exc"&sie #+e$&c/(i#'/" *&+*#se.

7. ANSWER: CC/s- +eceie$ =5,000 x 3? 15,000Le/se-#"$ i%*+#e%e'(<

C#s( 1,800,000

Less< Acc&%&"/(e$$e*+eci/(i#' =1,800,000@30 x 3.75? 225,00

0 B## /"&e &*#'(e+%i'/(i#'

1,575,000


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Less< A%#&'( $ec"/+e$ /si'c#%e

2013 21,429 2014 42,857 2015 42,857 2016 42,857 150,0

001,425,0

00T#(/" 1,440,0

00

EXERCISE 3-42!

1. ANSWER: A

e'( =2,000 x 12? 24,000

Le/se-#"$ i%*+#e%e'( 1,000,000

I'c#%e &si' #&(+i-( %e(-#$ 1,024,000

2. ANSWER: C

e'( =2,000 x 12? 24,000

Le/se-#"$ i%*+#e%e'(< C#s( 1,000,0

00 Less< De*+eci/(i#' #+ 9 )e/+s=1,000,000@20 x 9?

450,000

B## /"&e, e'$ # "e/se 550,000

A''&/" i'c#%e =550,000@ 9 )e/+s? 61,111I'c#%e &'$e+ s*+e/$#&( %e(-#$ 85,111

3. ANSWER: C

A''&/" i'c#%e +e*#+(/!"e 61,111

x :#. # )e/+s # +e*#+(i' 1L#ss i'c&++e$ !) B+)/'( 61,111:#(e< I( is *+es&%e$ (-/( B+)/'( -/$ /"+e/$) +e*#+(e$ -is e'(i+e i'c#%e #'

"e/se-#"$ i%*+#e%e'( #+ (-e (/x/!"e )e/+ 2015 !&( '#( -is i'c#%e+#% J/'&/+) (# Fe!+&/+) 28, 2016.

EXERCISE 3–43!

ANSWER: B

e'( i'c#%e 36,000

I'c#%e #' "e/se-#"$ i%*+#e%e'(< C#s( # i%*+#e%e'( 600,0

00


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Less< De*+eci/(i#' #+ 15 )e/+s=600,000@30 x 15?

300,000

B## /"&e, e'$ # "e/se 300,000 Dii$e !) +e%/i'i' (e+% # "e/se=)e/+s?

15 20,000

A''&/" i'c#%e (# !e +e*#+(e$ 56,000

EXERCISE 3–44

1. ANSWER: A

T-e i'c#%e +#% +e'( +eceie$ !) ic is (/x/!"e (# -i%, -i"e (-e /%#&'(ie' /s "#/' is '#( !ec/&se (-e+e /s '# /i' +e/"ie$ !) ic i' (-is(+/'s/c(i#'. As / %/((e+ # /c(, (-e+e /s '# /i' +e/"ie$ -e(-e+ /s*/)%e'( #+ se+ices, i'(e+es( #+ *+#( +#% i'es(%e'(.

2. ANSWER: C

C#s( # i%*+#e%e'( 2,000,00

0Less< De*+eci/(i#' #+ 8 )e/+s =2,000,000@50 x8?

320,000

B## /"&e, e'$ # "e/se 1,680,000

e'( i'c#%e 10,000

I'c#%e +#% "e/se-#"$ i%*+#e%e'(=1,680,000 @ 8?

210,000

T#(/" i'c#%e &si' s*+e/$#&( %e(-#$ 220,000

3. ANSWER: D

EXERCISE 3-5

EXERCISE 3–51!

1. ANSWER: D

/"&e # *+#%iss#+) '#(e 120,000

Less< Disc#&'( =120,000 x 20>? 24,000T/x/!"e i'c#%e, 2011 96,000

2. ANSWER: D

Disc#&'( 24,000Less< I'c#%e (# !e +e*#+(e$ i' 2012 =24,000x 50>?

12,000

T/x/!"e i'c#%e, 2013 12,000

EXERCISE 3–52!

1. ANSWER: C

/"&e # *+#%iss#+) '#(e


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50,000Less< Disc#&'( =50,000 x 25>? 12,500T/x/!"e i'c#%e, 2013 37,500

2. ANSWER: B

/"&e # *+#%iss#+) '#(e

50,000Less< A%#&'( /"+e/$) $ec"/+e$ /s i'c#%e 37,500T/x/!"e i'c#%e, 2014 12,500

EXERCISE 3–53!

1. ANSWER: C

/)%e'( #+ se+ices +e'$e+e$ !) *+#%iss#+) '#(e -ic- c/' !e$isc#&'(e$, is (/x/!"e (# (-e */)ee /( i(s /i+ $isc#&'(e$ /"&e.

EXERCISE 3-6 MULTIPLE CHOICE

1. ANSWER: B

A sc-e$&"/+ s)s(e% # (/x/(i#' is / s)s(e% e%*"#)e$ -e+e (-e i'c#%e(/x (+e/(%e'( /+ies /'$ is %/$e (# $e*e'$ #' (-e i'$ #+ c/(e#+) # (/x/!"ei'c#%e # (-e (/x*/)e+. I( is $is(i'&is-e$ +#% "#!/" s)s(e% i' (-e se'se (-/((-e "/((e+ is e%*"#)e$ -e+e (-e (/x s)s(e% ies i'$i;e+e'(") (-e (/x !/se/'$ e'e+/"") (+e/(s i' c#%%#' /"" c/(e#+ies # (/x/!"e i'c#%e # i'$ii$&/"(Tan vs. Del Rosario, 237 SCRA 324, 331).

2. ANSWER: C

Dii$e'$s +eceie$ !) / $#%es(ic /'$ +esi$e'( #+ei' +#% / $#%es(icc#+*#+/(i#' /+e '#( s&!ec( (# i'c#%e (/x.

Dii$e'$s +eceie$ !) / +esi$e'( ci(ie' +#% / $#%es(ic c#+*#+/(i#' /+es&!ec( (# / '/" (/x # 10>.

Dii$e'$s +eceie$ !) / $#%es(ic c#+*#+/(i#' +#% / #+ei' c#+*#+/(i#'/+e s&!ec( (# #+$i'/+) i'c#%e (/x.

3. ANSWER: C

i''i's i' "#((# /+e (/x exe%*(.

4. ANSWER: C

/"&e/$$e$ (/x, #(-e+ *e+ce'(/e (/xes /'$ excise (/x #' ce+(/i' ##$s/+e (/xes #&'$ &'$e+ Ti("es I, /'$ I, +es*ec(ie") # :IC, -ic- c#'(/i'(-e *+#isi#'s #' !&si'ess (/x/(i#' -e+e/s, i'c#%e (/x/(i#' is $isc&sse$ i'Ti("e II # (-e s/%e c#$e.

5. ANSWER: B

T-e /%#&'( # 3,000 +/ise$ !) M#' is / i( -ic- s-#&"$ !e exc"&$e$+#% +#ss i'c#%e !ec/&se -e' / '/'ci/" /i$ is /se$, (-/( %e/'s (-/((-e+e is '# "e/"") $e%/'$/!"e #!"i/(i#' #' (-e */+( # #(-e+ *e#*"e (# ie-i% %#'e).


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6. ANSWER: D

I'c#%e +ee+s (# e/+'i's, "/&"") /c&i+e$, i(-#&( c#'se's&/"+ec#'i(i#', ex*+ess #+ i%*"ie$ # /' #!"i/(i#' (# +e*/) /'$ i(-#&(+es(+ic(i#' /s (# (-ei+ i%*#si(i#' =J/%es s. , 366 213?.

7. ANSWER: C T-e /%#&'( +eceie$ !) Cei$i /'$ A$#+ /"" i(-i' (-e /%!i( # i'c#%e+#% -/(ee+ s#&+ce $e+ie$ !ec/&se (-ese /+e i'c#%e '#( ex*+ess")exc"&$e$ #+ exe%*(e$ +#% (-e c"/ss # (/x/!"e i'c#%e.

T-e /!#e *-+/se is s# !+#/$ (-/( i( i'c"&$es /"" i'c#%e '#( ex*+ess")exc"&$e$ #+ exe%*(e$ +#% (-e c"/ss # (/x/!"e i'c#%e, i++es*ec(ie #

#"&'(/+) #+ i'#"&'(/+) /c(i#' # (-e (/x*/)e+ i' *+#$&ci' (-e i'c#%e(Gutierrez vs. CIR, CTA Case No. !).

8. ANSWER: D

T-e /%#&'( # i'$e!(e$'ess c/'ce""e$ $&e (# se+ices +e'$e+e$ !) (-e$e!(#+ is c#'si$e+e$ /s c#%*e's/(i#' i'c#%e. I( is &s( "ie */)i' /'e%*"#)ee !) /' /%#&'( e&i/"e'( (# (-e se+ices -e -/$ +e'$e+e$ (# -ise%*"#)e+c+e$i(#+.

9. ANSWER: C

T-e %#'e) /"&e # /cc&%&"/(e$ "e/e c+e$i(s '#( excee$i' 10 $/)s is'#( (/x/!"e (# (-e e%*"#)ee.

T+/e""i' ex*e'ses +eceie$ !) /' e%*"#)ee -# /s se'( #' / !&si'ess(+i* /+e '#( (/x/!"e (# (-e e%*"#)ees *+#i$e$ (-/( (-ese e%*"#)ees /+e+e&i+e$ (# "i&i$/(e s/i$ ex*e'ses.

Ti*s +eceie$ !) /i(+esses $i+ec(") +#% c&s(#%e+s -ic- /+e '#(/cc#&'(e$ #+ !) (-e e%*"#)e+ (# (-e e%*"#)e+ /+e c#'si$e+e$ (/x/!"e i'c#%e.

10

ANSWER: D

I / c#+*#+/(i#' (# -ic- / s(#c-#"$e+ is i'$e!(e$ #+ies (-e $e!(, (-e(+/'s/c(i#' -/s (-e e;ec( # / */)%e'( # $ii$e'$ (Se". !, Rev. Re#s. No. 2).

11

ANSWER: B

T-e %#'e) ie' (# L//+# is / +e%&'e+/(#+) $#'/(i#'. I( is $ee%e$ /'i'c#%e, s&!ec( (# i'c#%e (/x.

12

ANSWER: C

Ti*s 5,000

Li/!i"i() c#'$#'e$ /(e+ +e'$e+i' se+ice 25,000T/x/!"e i'c#%e 30,000

1 ANSWER: A


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3e""i' *+ice =115 x 200? 23,000Less< C#s( =100 x 200? 20,000/i' #' s/"e 3,000

D/(e -/+es C#s(*e+ s-/+e

T#(/" C#s(

1242008 200 100

20,000

2052008 200110

22,000

4122008 =400 x 5>? 20 . 420 42,000 :e c#s( *e+ s-/+e =42,000@420? 100

14

ANSWER: D

e""i' *+ice =115 x 200? 23,000

Less< C#s( =95.23 x 200? 19,046/i' #' s/"e 3,954 :#. # -/+es Date "$ :e

C#s(

:e C#s(*e+ -/+e

1242008 200 21020,000

95.23

15

ANSWER: C

M/+e( /"&e # s-/+es Mi'/

C#%*/')

120

x :#. # C#%%#' s-/+es 150+#*e+() $ii$e'$ 18,000

16

ANSWER: D

M/+e( /"&e # s(#cs $ii$e'$s *e+s-/+e

30

(#c $ii$e'$ +eceie$ !) #s/ =1,000 x20>x10>?

20

Dii$e'$ i'c#%e 600

17

ANSWER: A

e""i' *+ice =30 x 25? 750Less< C#s( =5,000@125? x 25 1,000L#ss = 250? :&%!e+

A%#&'(

-/+es 5,000


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PAGE 17

100 Dii$e'$ =100 x 25>?25

T#(/"125

5,000

18

ANSWER: D

/"e # $ii$e'$s =60 x 40? 2,400

Less< C#s( 200 =200 x55?

11,000

20 =200 x20>?

.

220 11,000

=11,000@220? x 40 2,000/i' #' s/"e 400

19

ANSWER: A

T#(/" s/"e =400,000 N 50,000? 450,000

Less< C#s( 240,000

B## /"&e # /+% e&i*%e'( 35,000

275,000

/i' #' s/"e 175,000

A$$< (-e+ i'c#%e 12,500

+#ss i'c#%e 187,500

EXERCISE 3 -7

es. I( is */+( # J/ie+s +#ss i'c#%e /""i' i(-i' (-e /%!i( # (-e i'c#%e+#% -/(ee+ s#&+ce $e+ie$ -ic- i'c"&$es /"" i'c#%e '#( ex*+ess") exc"&$e$#+ exe%*(e$ +#% (-e c"/ss # (/x/!"e i'c#%e, i++es*ec(ie # (-e #"&'(/+) #+i'#"&'(/+) /c(i#' # (-e (/x*/)e+ i' *+#$&ci' (-e i'c#%e.

T-e *-+/se i'c"&$es /"s# *+#cee$s # s(#"e' #+ e%!e"e$ *+#*e+() #+ /i's

$e+ie$ +#% i""e/" s#&+ce. T-&s, /ss&%i' (-/( (-e Me""#' B/' /i"s (# +ec#e+(-e %#'e), i( s-/"" !e (/x/!"e (# J/ie+


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EXERCISE 4–1 CROSS"ORD PU##LE

21

52

$ D3

Y T4

" E L V E

E M

R5

A N % & F I L E

R N

S G6 S I S

37

M

C'

L O T H I N G

( S

EXERCISE 4 - 2

* T 7 > ** T

> T * >

5 > D > *5 T

+ > / T *+ T

6 T *A > *6 T

EXERCISE 4-3

1.

/.

I'(e+es( #' c#+*#+/(e!#'$s

T/x/!"e

!.

/"/+) T/x/!"e

c.

Ti*s T/x/!"e

$

.

i''i's i' "#((# :#( (/x/!"e =ex*+ess") exe%*( &'$e+

(-e "/?e.

i''i's i' &e(e' T/x/!"e =i'c#%e +#% -/(ee+ s#&+ce$e+ie$?

. M#'e) s(#"e' +#%%#(-e+s *&+se

T/x/!"e =i'c#%e +#% -/(ee+ s#&+ce$e+ie$?

.

ice s&!si$) # 325 *e+%#'(-

:#( (/x/!"e =$e %i'i%is !e'e(?


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2.

T-e /"&e # (-e +ee %e/"s /'$ "#$i' is '#( (/x/!"e (# /)/. I( is e+)c"e/+ (-/( (-e c#&*"e +e&i+e$ -e+ (# s(/) i' (-ei+ -#&se #+ (-ei+ #'!e'e(. He'ce, (-e %/((e+ /""s s&/+e") i(-i' (-e c#'e'ie'ce#(-ee%*"#)e+ +&"e.

3

.

:#. T-e e&i/"e'( /"&e # (-e "ii' &/+(e+ is '#( (/x/!"e (# K&"/s

&'$e+ (-e c#'e'ie'ce#(-ee%*"#)e+ +&"e. T-e *&+*#se # (-e *ie+)/+% i' *+#i$i' K&"/s / +##% i'si$e (-e *+e%ises is #+ (-ec#'e'ie'ce # H/!/' B/(/ / ie+) F/+%.

4.

T-e +ice /""#/'ce is c#'si$e+e$ /s / $e %i'i%is !e'e( -ic- is exe%*(+#% i'c#%e (/x. T-&s, i( is 'ei(-e+ s&!ec( (# c+e$i(/!"e i(--#"$i' (/x'#+ (# +i'e !e'e( (/x.

5

.T-e +ee */+i' /'$ c#&+(es) $isc#&'(s /+e s&!ec( (# +i'e !e'e( (/xc#'si$e+i' (-/( K/+ee' Le#' is / %/'/e+i/" e%*"#)ee # BC#+*#+/(i#'. T-e +ice s&!si$) # 1,000 / %#'(- /"" &'$e+ (-e $e %i'i%is

!e'e(s -ic- /+e exe%*( +#% i'c#%e (/x.

T-e excess # (-e "/&'$+) /""#/'ce i' (-e /%#&'( # 450 =750300? is */+( # +#ss c#%*e's/(i#' i'c#%e i s&c- excess is !e)#'$ (-e30,000 cei"i' #+ #(-e+ !e'e(s.

T-e +e'(/" /"&e # (-e +esi$e'(i/" *+#*e+() is s&!ec( (# +i'e!e'e(s (/x -ic- is s&!ec( (# '/" (/x. T-e+e#+e, '#( */+( # (-e +#ssi'c#%e.

6.

T-e c#s( # (-e e$&c/(i#'/" /ssis(/'ce ex(e'$e$ !) De "/ /""e 'ie+si()(# +#. Fe+$i'/'$ #%e+# is s&**#se$ (# !e (+e/(e$ /s */+( # (-e(e/c-e+s +#ss c#%*e's/(i#' i'c#%e c#'si$e+i' (-/( +#. #%e+# is'ei(-e+ c"/ssie$ /s %/'/e+i/" '#+ s&*e+is#+) e%*"#)ee -e is s(i""c"/ssie$ /s / +/'/'$"e e%*"#)ee.

H#ee+, si'ce (-e+e is / c#'$i(i#' (-/( -e s-#&"$ +e%/i' i' (-ee%*"#) # (-e e%*"#)e+ #+ /( "e/s( (e' )e/+s /(e+ +/$&/(i#', (-eex*e'$i(&+e s-/"" !e c#'si$e+e$ /s +/'(e$ #+ (-e c#'e'ie'ce # (-ee%*"#)e+s (+/$e #+ !&si'ess.

T-e+e#+e, -e(-e+ (-e +/'(i' # (-e !e'e( is ex(e'$e$ (-+#&- /&/"i)i'@c#%*e(i(ie ex/%i'/(i#' #+ '#(, i( s-#&"$ '#( !e */+( # (-e+#ss c#%*e's/(i#' i'c#%e # +#. #%e+#.

T-e c#s( # (-e (&i(i#' ee is /((+i!&(/!"e (# (-e #*e+/(i#' /'$c#'$&c( # !&si'ess # (-e e%*"#)e+. T-e+e#+e, (-e s/%e s-/"" !e$e$&c(e$ +#% (-e +#ss i'c#%e # (-e sc-##".

EXERCISE 4 – 4

1. ANSWER: C


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F+i'e !e'e( ex*e'se 34,000

F+i'e !e'e( (/x ex*e'se 16,000De$&c(i!"e ex*e'se 50,000

2. ANSWER: C

F+i'e !e'e( ex*e'se 34,000

Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 50,000

3. ANSWER: A

T-e +i'e !e'e( (/x is i%*#se$ #'") i (-e +i'e !e'e( is ie'(# %/'/e+i/" #+ (# s&*e+is#+) e%*"#)ees.

Acc#&'(i' c"e+s, /'i(#+s /'$ (-e sec&+i() &/+$s /+e +/'/'$"e e%*"#)ees. '") (-e c#%*/')s e'e+/" %/'/e+ is / %/'/e+i/" #+s&*e+is#+) e%*"#)ee. T-e+e#+e, (-e +i'e !e'e( (/x %&s( -/e !ee'ie' (# -i%.

4. ANSWER: B

T-e #'e s/c # +ice is '#( s&!ec( (# +i'e !e'e( (/x #' (-e +s(1,000 *e+ e%*"#)ee *e+ %#'(- (-e excess %/)!e /"s# !e exe%*( i #+%i' */+( # (-e #(-e+ !e'e(s '#( excee$i' 30,000.

A c#+*#+/(i#', (-#&- exe%*( +#% (/x, is '#( exe%*( +#% (-e */)%e'(# +i'e !e'e( (/x.

T-e e&i/"e'( /"&e # +ee "#$i' ie' (# / $+ie+ # /' #!s(e(+ici/'/""s &'$e+ c#'e'ie'ce # (-e e%*"#)e+ +&"e -ic- is '#( s&!ec( (#+i'e !e'e( (/x.

T-e e%*"#)e+s s-/+e i' (-e I c#'(+i!&(i#' is '#( s&!ec( (# i'c#%e(/x.

EXERCISE 4-5

1. ANSWER: B

Fees i' ciic c"&! 5,000Lie i's&+/'ce *+e%i&% 15,400

M#'e(/+) /"&e 20,400Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 30,000/(e # (/x 32>F+i'e !e'e( (/x 9,600

2. ANSWER: BT# +/' /'$ "e e%*"#)ees


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C-+is(%/s !#'&s 32,000 L#/' !e'e(s O96,000 x =12>8>? 3,840 Me$ic/" /""#/'ce 16,000 'i#+% /""#/'ce 12,000 63,840T# (-e s&*e+is#+< C-+is(%/s !#'&s 4,000

Fees i' ciic c"&! 5,000 Lie i's&+/'ce *+e%i&% 15,400 'i#+% /""#/'ce 3,000 27,400F+i'e !e'e( ex*e'se 91,240 F+i'e !e'e( (/x ex*e'se 9,60

0 T#(/" $e$&c(i#'s 100,84

0

3. ANSWER: D

/' /'$ "e<C-+is(%/s !#'&s =%/x< 5,000 @ e%*"#)ee*./.?

32,000

Me$ic/" /""#/'ce =%/x< 125 *e+ e%*"#)ee*.%.?

12,000

'i#+% /""#/'ce =%/x< 3,000 @ e%*"#)ee

*./.?

12,000

&*e+is#+< C-+is(%/s !#'&s 4,000 'i#+% /""#/'ce 3,000T#(/" $e %i'i%is !e'e(s 63,000

4. ANSWER: A EXERCISE 4-6

1. ANSWER: C

As / e'e+/" +&"e, +ee %e/"s /'$ "#$i' &+'is-e$ !) (-ee%*"#)e+ (# (-e e%*"#)ees /+e (/x/!"e (# (-e "/((e+. H#ee+,/""#/'ces &+'is-e$ #+ /'$ /s / 'ecess/+) i'ci$e'( (# (-e *+#*e+()*e+#+%/'ce # -is $&(ies /+e '#( (/x/!"e !ec/&se (-e) /"" &'$e+ (-ec#'e'ie'ce # (-e e%*"#)e+ +&"e.

2. ANSWER: C

T#')s +#ss i'c#%e is 9,500 !ec/&se -is e%*"#)e+s +esi$e'ce is'#( (-e *"/ce # !&si'ess -e+e (-e e%*"#)e+ c#'$&c( / si'ic/'(*#+(i#' # -is !&si'ess.

' (-e #(-e+ -/'$, Be+(s +#ss i'c#%e s-#&"$ '#( i'c"&$e (-e%#'(-") /"&e # -is +ee %e/"s /'$ "ii' &/+(e+s !ec/&se (-e


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PAGE 22

*+#isi#' e'/!"es C+is() (# //i" # (-e se+ices # Be+( /( -e+c#'e'ie'ce (RA$% 1&'7).

3. ANSWER: D

T-e +ee %e/"s /+e ie' !) (-e e%*"#)e+ (# *+#i$e s/'i(/+) %e/"s(# i(s e%*"#)ees, -i"e (-e +ee "#$i' /+e *+#i$e$ !ec/&se (-e) $#'#( /'( (-e #+e+s (# '$ $i;ic&"() i' "##i' #+ !#/+$i' -#&ses.T-ese !e'e(s /+e #!i#&s") &+'is-e$ #+ (-e !e'e( # (-e e%*"#)ees/'$ '#( (# (-e /$/'(/e # (-e e%*"#)e+.

I( is (-e+e#+e, /**/+e'( (-/( (-e /""#/'ces &+'is-e$ /+e i' (-e#+% # +i'e !e'e(s. H#ee+, si'ce (-e) /+e ie' (# #+$i'/+)#+e+s -ic- /"" i(-i' (-e c"/ssic/(i#' # +/'/'$"e e%*"#)ees,(-e !e'e(s /+e (/x/!"e (# (-e% /'$ /+e i'c"&$i!"e i' (-e c#%*&(/(i#'# (-ei+ +es*ec(ie +#ss i'c#%e.

4. ANSWER: D

T-e +#sse$&* %#'e(/+) /"&e i'c"&$es (-e %#'e(/+) /"&e # (-e+i'e !e'e( +eceie$ !) (-e e%*"#)ee +#% -is e%*"#)e+ /'$ (-e/%#&'( # +i'e !e'e(s (/x $&e (-e+e#' -ic- /s */i$ !) (-ee%*"#)e+.

5. ANSWER: D

T-e &se # /i+c+/( #'e$ /'$ %/i'(/i'e$ !) (-e e%*"#)e+ s-/"" !e(+e/(e$ /s !&si'ess &se /'$ '#( s&!ec( (# +i'e !e'e(s (/x.

6. ANSWER: D

J/&/+ is / +/'/'$"e e%*"#)ee. A"" +i'e !e'e(s ie' !) -ise%*"#)e+ /+e '#( s&!ec( (# +i'e !e'e(s (/x.

T-e +ee %e/"s /'$ "#$i' ie' (# C#". e'e+/" is s*ecic/"")exe%*( +#% +i'e !e'e(s (/x. M#+e#e+, i( is /"s# &+'is-e$ #+ (-ec#'e'ie'ce # (-e e%*"#)e+ =(-e -i"i**i'e #e+'%e'(? s# (-/( (-e%i"i(/+) #;ice+ s-/"" !e +e/$i") //i"/!"e -e' -is se+ices /+e+e&i+e$. T-e &'i#+% /""#/'ce /""s &'$e+ $e %i'i%is !e'e(s -ic-/+e exe%*( +#% (-e +i'e !e'e(s (/x.

7. ANSWER: B

De %i'i%is !e'e(s /+e # +e"/(ie") s%/"" /"&e (-/( (-e) /+eexe%*( +#% (-e */)%e'( # +i'e !e'e(s (/x /'$ #+$i'/+) i'c#%e(/x.

8. ANSWER: B

F+i'e !e'e(s ie' (# +/' /'$ "e e%*"#)ees /+e exe%*( +#%+i'e !e'e(s (/x. H#ee+, (-e+e /+e !e'e(s -ic- /+e s&!ec( (#


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+e&"/+ i'c#%e (/x $e*e'$i' &*#' (-e '/(&+e # !e'e(s (-ee%*"#)ees -/e +eceie$ +#% (-ei+ e%*"#)e+.

9. ANSWER: D

A +esi$e'(i/" *+#*e+() #'e$ !) (-e e%*"#)e+ /'$ /ssi'e$ (# /'e%*"#)e+ #+ &se /s -is +esi$e'ce is s&!ec( (# +i'e !e'e(s (/x !/se$#' (-e 5> # (-e /i+ %/+e( /"&e # (-e "/'$ /'$ i%*+#e%e'(s.

10.

ANSWER: D

'"ie #(-e+ i'$ii$&/" (/x*/)e+s, '#'+esi$e'( /"ie's '#( e'/e$i' (+/$e #+ !&si'ess /+e s&!ec( (# +i'e !e'e(s (/x /( / +/(e # 25># (-e +#sse$&* %#'e(/+) /"&e.

EXERCISE 4-

1. ANSWER: C

&+c-/se # +#ce+ies 10,500

Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 15,441/(e # (/x 32>F+i'e !e'e( (/x 4,941

T-e %e$ic/" !e'e(s is / $e %i'i%is !e'e( &* (# (-e cei"i' #10,000, (-e excess # 7,500 is -e+e!) *+es&%e$ (# !e i'c"&$e$ /s*/+( # (-e+ Be'e(s.

2. ANSWER: A M#'(-") s/"/+) 4,00

0F+ee %e/"s /'$ "ii' &/+(e+s =1,500 N1,000?

2,500

M#'(-") +#ss c#%*e's/(i#' i'c#%e 6,500

3. ANSWER: B

/"/+) 4,000

4. ANSWER: DC#s( # +s( c"/ss (ice( P

2,500/(e s&!ec( (# +i'e !e'e( (/x 30

>F+i'e !e'e( 750Exc-/'e /"&e i' -i"i**i'e c&++e'c) 43F+i'e !e'e( s&!ec( (# +i'e !e'e( 32,250


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(/xDii$e !) 68>+#sse$&* %#'e(/+) /"&e 47,426.

47/(e 32

>

F+i'e !e'e( (/x 15,176.47

5. ANSWER: D

M#'e(/+) /"&e =800,000@5? x 50> 80,000

Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 117,64

7/(e # (/x 32>F+i'e !e'e( (/x 37,647

6. ANSWER: B

M#'e(/+) /"&e =10,000 x 50>? 5,000


7. ANSWER: C

I'(e+es( /( !e'c-%/+ +/(e =100,000 x12> x 8@12?

8,000

Less< I'(e+es( /( s*eci/" +/(e =100,000 x9> x 8@12?

6,000

I'(e+es( #+e#'e@/"&e # !e'e( 2,000Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 2,941.1

8/(e # (/x 32>F+i'e !e'e( (/x 941.18

8. ANSWER: A

T#(/" ex*e'ses i'c&++e$ 16,000



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9. ANSWER: D

/"/+) # $+ie+ /'$ -#&se%/i$ =4,000N 2,000?

6,000

Me%!e+s-i* ees /'$ $&es =75,000@12? 6,250M#'e(/+) /"&e # !e'e( 12,250Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 18,015/(e # (/x 32>F+i'e !e'e( (/x 5,765

10. ANSWER: A

F/i+ %/+e( /"&e =-i-e+? 2,500,000

Dii$e !) 68>

+#sse$&* %#'e(/+) /"&e 3,676,4

71/(e # (/x 32

>F+i'e !e'e( (/x 1,176,4

71

11. ANSWER: DM#'e(/+) /"&e =3,400 x 50>? 1,70

0Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 2,500

/(e 32>F+i'e !e'e( (/x #' +e'(/" 800 A$$< M#'(-") +e'(/" 3,400F+i'e !e'e( (# c"e+ 3,000De$&c(i!"e ex*e'se 7,200

12. ANSWER: D

F+i'e !e'e( (# s&*e+is#+) e%*"#)ees 170,000Dii$e !) 68>+#sse$&* %#'e(/+) /"&e 250,000

/(e 32>F+i'e !e'e( (/x 80,000

ampongan solman

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