Separation pay brought about by the following circumstances is non-taxable, except:Select one:a.Reorganization of the company due to mergerb.Voluntary resignationc.Bankruptcy of the companyd.SicknessClear my choice

The following situation may warrant that separation pay shall not be included in the gross taxable income, exceptSelect one:a.Employmentb.Reorganization of the companyc.Bankruptcy of the companyd.Disability

Mr. Juan Dela Cruz recently received P200,000 as a separation pay from his employer, ABC Corporation, since the company was undergoing reorganization due to merger with XYZ Corporation. Is the amount received by Mr. Dela Cruz taxable? Answer I No, because the separation was involuntary on his part. Answer II Yes, because by nature, separation pay is generally taxable.Select one:a.Both of the given choices are correct.b.No, because the separation was involuntary on his part is correct: Yes, because by nature, separation pay is generally taxable is wrongc.No, because the separation was involuntary on his part is wrong: Yes, because by nature, separation pay is generally taxable is correctd.No correct answer

Statement I Separation pay may be taxable or tax-exemptStatement II Separation pay is not taxable if the separation is involuntary on the part of employee.Select one:a.Only Statement II is correctb.Only Statement I is correctc.Both statements are correctd.Neither statement is correctClear my choice

Read and analyze the statements.I. The unused input tax of the dissolved corporation as of the date of merger or consolidation shall be absorbed by the surviving or new corporation.II. Real property held for investment declared as property dividends to shareholders are considered as transactions deemed sale for VAT purposes.Select one:a.False, trueb.False, falsec.True, falsed.True, trueClear my choice

If a contingent liability of a subsidiary is recognised in a business combination, on consolidation the groupwill record:a) a deferred tax liability.b) a deferred tax asset.c) a reduction in goodwill.d) none of the above