This study source was downloaded by 100000859080904 from CourseHero com on 12 16 2022 19 34 28 GMT 06 00 https www coursehero com file 70971855 tax4worddocx CPA REVIEW SCHOOL OF THE PHILIPPINES For PSBA Integrated ReviewPARTNERSHIPS JOINT VENTURE AND CO OWNERSHIP1 As regards a business partnership which of the following is not correct a The partnership must file quarterly and year end income tax returns b The distributable income available to the partners is the taxable income less the income tax thereon c The share of a partner in the distributable net income even if not actually received is considered constructively received by the partner d The share of a partner in the distributive net income whether actually received or not is subject to a final withholding tax on dividends 2 The following statements regarding taxable partnerships are correct excepta They file quarterly and year end income tax returns b b They are subject to the rules on corporation for capital gains tax final tax on passiveincome normal income tax MCIT and gross income tax c The partners share in the distributable net income is subject to final tax d They are subject to the improperly accumulated earnings tax 3 3 Regarding a general professional partnership which of the following is not correct a It shall not be subject to income tax b The partners shall be liable for income tax on their respective distributive shares c Each partner shall report as gross income his distributive share in the partnership netincome d The share of a partner shall be subject to a creditable withholding tax of 10 if hisdistributive share is below P720 000 and 15 if at least P720 000 4 If a partner on his own transactions is on the cash method of accounting while the general professional partnership is on the accrual method of accounting in the partner sdetermination of his taxable income for the year hea Must convert his income from the partnership into cash method b Must convert his own income into accrual method c Does not report his income from the partnership because the partnership is exemptfrom income tax d Can consolidate his share in the net income of the partnership under accrual methodwith his own income under the cash method 5 Which of the following statements is not correct a When the co owners invest the income of the property co owned in a business or in any income producing properties or activities constituting themselves into a businesspartnership such partnership is consequently subject to tax as a corporation b As a rule a co ownership is not subject to income tax because the activities of the co owners are limited to the preservation and enjoyment of the property and the collection of the income therefrom c As a co owner is subject to income tax on his share in the net income of the co ownership actually or constructively received d All partnerships no matter how created or organized are considered corporations subject to corporate income tax This study source was downloaded by 100000859080904 from CourseHero com on 12 16 2022 19 34 28 GMT 06 00 https www coursehero com file 70971855 tax4worddocx 6 As regards an ordinary partnership which of the following statements is correct a Partners shares are subject to final tax hence the partnership need not file an ITR b Subject to improperly accumulated earnings tax c Treated like corporations hence partners have limited liability d Partners shares even if distributed will not be included in their respective ITRs 7 As regards a general professional partnership which of the following statements iscorrect a Treated like a corporation hence it is subject to the corporate income tax b It is exempt from income tax hence it need not file an ITR c Partners shares are subject to final tax d Partners shares will be included in their respective ITRs whether distributed or not8 Statement 1 A CPA and a Lawyer may form a general co partnership to sell law and accounting books Statement 2 Partnerships and Corporations have separate juridical personalities distinctfrom the owners Therefore partners and stockholders are not liable to creditors of the business a True true b False falsec False true d True false9 Statement 1 The general professional partnership may claim itemized deductions in computing its net income and a partner may also claim itemized deductions in computinghis net income Statement 2 The general professional partnership may claim the optional standard deduction in computing its net income while a partner may claim itemized deductions in computing his net income a True true b True false c False true d False false10 Statement 1 The general professional partnership may claim itemized deductions in computing its net income while a partner may claim the optional standard deduction incomputing his net income Statement 2 The general professional partnership may claim the optional standard deduction in computing its net income and a partner may also claim the optional standarddeduction in computing his net income a True true b True false c False true d False false11 The net share received by a partner in a general professional partnership isa Part of his taxable income in his ITR b Exempt from income taxc Subject to 10 creditable withholding taxd Subject to final tax This study source was downloaded by 100000859080904 from CourseHero com on 12 16 2022 19 34 28 GMT 06 00 https www coursehero com file 70971855 tax4worddocx 12 The net share received by a partner in a general co partnership isa Part of his taxable incomeb Exempt from income taxc Subject to 10 creditable withholding taxd Subject to final tax13 16 AB partnership with A and B as partners both resident citizens had a netprofessional income amounting to P500 000 for 2018 Its other income included bankinterest income of P8 000 net of final withholding tax and royalty income of P10 000 net of the final withholding tax A is single and has his own separate eatery business In 2018 his business had netsales of P1 000 000 cost of sales of P500 000 and operating expenses of P300 000 13 The net share of A in the income of the GPP is a Php250 000b Php259 000c Pap 225 000d Php233 10014 The net taxable income and income tax payable of A who shares profs and less equally with B is their GPP isa P450 000 P16 600b P400 000 P10 450c P439 000 P9 670 d None of the above 15 Using the preceding member but it is a business partnership the taxable income of thepartnership isa P518 000b P500 000c P510 000d P508 00016 Using the preceding