Exclusions from gross income, except: O Interest on the price of land covered by the Presidential Decree on land reform Interest payments on proceeds of life insurance held by the insurer. OGSIS, SSS. Philhealth and Pag-ibig contributions and union dues of individuals. Gains realized by an investor upon redemption of shares of stock in a mutual fund company
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- Which of the following may be ordinary income? Salary Government pension Lottery winnings Rent from an investment property a. 1, 2, and 4 only b. 1 only c. 1 and 2 only d. 1, 2, 3, and 41.Which of the following is a permanent difference? Dividends from a domestic corporation Property insurance premiums paid Commissions from consignment sales Donations received Interest on savings depositMC: Topic: Income Taxation Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * Both statements are true Both statements are false Only statement 1 is true Only statement 2 is true
- Which of the following is a permanent difference? Donations received Interest on savings deposit Property insurance premiums paid Dividends from a domestic corporation Commissions from consignment salesWhich constitutes a taxable item of gross income? * Compensation for personal injuries O Gain from sale of shares in mutual fund: O Gain from sale of government bonds O Income exempt under treaty49.The redeemable cash value of a life insurance policy (cash surrender value) where the insured is the president of the Corporation and the beneficiary is the same Corporation, is presented in the Statement of Financial Position as Select one: a.Cash. b. Long-term investment c. Investment in negotiable securities. d. Insurance paid in advance
- a. Indicate whether the following income sources must be included or may be excluded from gross income and why? Insurance proceeds for loss of finger Prizes Embezzlement proceeds Interest on all savings deposits Child support Interest on Series HH bonds Receipt of alimony by divorced husband - divorce agreement executed in 2018 Income produced from property acquired by gift Gifts and inheritances Scholarship grants for tuition Compensation for injuries or sickness Interest income on bonds issued by State of Ohio Life insurance proceeds from a group planWhich of the following creates temporary difference between financial and taxable income? * Interest on treasury debt securities Accelerated depreciation on plant and equipment O Fines from vilation of law Premiums paid for officer's life insurance (comapny is beneficiary)Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
- For an individual investor, investment in which one of the following accounts has the best liquidity? regular taxable investment account 401 (k) IRA Roth IRA1. Statement 1: If the proceeds of life insurance are held by the insurer under an agreement to pay interest thereon, the interest payments shall be included in gross income. Statement 2: The value of property acquired by gift, bequest, devise or descent, including it fruits and income, shall be excluded from the gross income. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true 2. Case 1: Avy made a total of P5,000 contributions for SSS, Philhealth, Pag-ibig, and union dues. The P5,000 contributions form part of Avy's gross compensation. However, in computing her taxable compensation, such amount must be excluded. Case 2: Avy suddenly got sick and was hospitalized for 1 month. She received a certain amount of benefit from SSS. Her hospital bills were also reduced by her philhealth benefit. The amount received by Nora from SSS and the reduction in her hospital bills constitute taxable compensation to Nora. a. Both…Which of the following journal entries would be recorded when an entity contributes cash to its defined benefit pension plan? Select one: а. DR Cash; CR Net defined benefit liability O b. DR Pension assets; CR Cash Ос. DR Cash in trust; CR Cash O d. DR Net defined benefit liability; CR Cash