A. Fixed percentage of gross income or the net taxable income
B. Fixed percentage of gross income or 50% of the net taxable income
C. 50% of the fixed percentage of gross income or 50% of the net taxable income
D. 50% of the fixed percentage of gross income or the net taxable income
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Related Mcqs:
- The depletion allowance method of computing depletion is commonly known as ___________________?
- A. Unit method B. Percentage method C. Factor method D. Sinking fund method...
- The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion?
- A. $ 5,000,000.00 B. $ 5,010,000.00 C. $ 5,025,000.00 D. $ 5,050,000.00...
- Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%?
- A. P 9,358.41 B. P 9,228.45 C. P 9,250.00 D. P 9,308.45...
- In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?
- A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method...
- What are the common methods of computing depletion charge ?
- A. Rational method and irrational method B. Conservative method and conventional method C. Unit method and percentage method D. Discrete method and depletion allowance method...
- What is another term for “unit method” for computing depletion ?
- A. Initial cost method B. Percentage method C. Factor method D. Sinking fund method...
- In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?
- A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method...
- In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?
- A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method...
- What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ?
- A. Unstable economy B. Rate of interest cannot be exactly determined C. The initial deprecation is high D. The initial depreciation is low...
- ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?
- A. 7 eyars B. 8 years C. 9 years D. 10 years...
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