This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx Midterm Quiz 21 A general professional partnership is exempt from income tax but is required tofile an income tax return a Because all income earners are required to file income tax returns b For statistical purposes c Because the net income of the partnership will be traced into the income tax return of the partners d None of the above 2 A partnership is formed by persons for sole purpose of common profession nopart of the income of which is derived from engaging in any trade or business a General professional partnershipb Joint accountsc Joint ventured Trading partnership3 A taxable partnership may be subject to the following taxes I Minimum corporate income taxII Gross income tax III Improperly accumulated earnings tax a I and II onlyb I II and IIIc I and III onlyd I only This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx 4 For purposes of taxation which of the following statements regarding partnershipis correct I Classified into two major categories partnership in trade and general professional partnership II Partnership in trade is treated as corporate taxpayer III General professional partnership is exempt from income taxa I onlyb I and III onlyc I and II onlyd I II and III5 In a general professional partnership GPP a The GPP shall be taxed on its income in the same manner as private partnershipsb The GPP shall report total partnership income and each individual partnership s share of that income c None of the aboved The partners are not liable for taxes on income withdrawn from the partnership6 Juan and Ponce are partners in a business partnership sharing profits and lossesin the ratio of 55 45 The following data on income and expenses of thepartnership show Gross incomeP750 000Expenses200 000Dividend received from a domestic corporation20 000Bank interest income Metrobank net 80 000What are the correct amounts of final taxes withheld on the respective shares of Juan and Ponce in partnership income This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx JuanPoncea 25 02520 475b 25 116 5020 587 50c P21 175P17 325d 26 67521 8257 Ramos Toribio Partnership is a general professional partnership with Ramos married and Toribio single participating equally in the income and expenses The following are the data for the partnership and the partners The gross income of Ramos from the partnership is a P125 000b P640 0000c P300 000d P08 Ramos Toribio Partnership is a general professional partnership with Ramos married and Toribio single participating equally in the income and expenses The following are the data for the partnership and the partners RT PartnershipRamosToribioGross IncomeP600 000P150 000P200 000Expenses350 00070 000120 000The taxable income of Ramos isa P205 000b P80 000c P0d P155 000 RT PartnershipRamosToribioGross IncomeP600 000P150 000P200 000Expenses350 00070 000120 000 This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx 9 Statement 1 All partnerships are taxed in the same manner as CorporationStatement 2 The income of a general commercial partnership is also subject to MCIT or Normal corporate Tax whichever is applicable a Statement 1 is false but statement 2 is trueb Statements 1 and 2 are truec Statement 1 is true but statement 2 is falsed Statements 1 2 are false10 Statement 1 Each partner of a general professional partnership shall report asgross income in his return his distributive share in the net income of thepartnership whether actually or constructively received Statement 2 If the partner of a GPP elects the itemized deductions his tax a taxshall be based on his share of the net income of the GPP a Statements 1 and 2 are trueb Statements 1 2 are falsec Statement 1 is true but statement 2 is falsed Statement 1 is false but statement 2 is true11 Statement 1 For purposes of computing the distributive share of the partners ofa general professional partnership the net income of the partnership shall becomputed in the same manner as a corporation Statement 2 Partners of a taxable partnership are considered as shareholdersand profits distributed to them by the partnership are considered as dividendsa Statements 1 and 2 are trueb Statements 1 2 are falsec Statement 1 is true but statement 2 is falsed Statement 1 is false but statement 2 is true This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx 12 Statement 1 If the amount to be distributed to a partner of a GPP is more thanP720 000 it is to be withheld with 15 creditable tax Statement 2 The share of a partner in a GPP is subject to final withholding tax of10 if the amount is below P720 000 Statement 3 The distributive share of a partner in a commercial partnership issubject to final tax of 10 a Statements 1 2 and 3 are falseb Only statement 2 is falsec Only statement 3 is falsed Statements 1 2 and 3 are true13 Statement 1 In computing the taxable share of partners in a general professionalpartnership the accounting method used accrual or cash method is animportant factor to consider Statement 2 Only the share in the net income actually withdrawn by a partner ina general professional partnership is taxable to him a Statement 1 is true but statement 2 is falseb Statements 1 2 are falsec Statements 1 and 2 are trued Statement 1 is false but statement 2 is true14 Statement 1 Salaries received by a partner from a general professionalpartnership is not considered gross compensation income but as part of hisshare in the distributable net income after tax of the partnership Statement 2 Salaries received by a partner from a business partnership isconsidered gross compensation income a Statement 1 is false but statement 2 is trueb Statement 1 is true but statement 2 is false This study source was downloaded by 100000857609153 from CourseHero com on 11 21 2022 07 20 36 GMT 06 00 https www coursehero com file 93771218 Midterm Quiz 2docx c Statements 1 and 2 are trued Statements 1 2 are false15 Statement 1 The distributive share of