Practice question
Which noncash disposition is expressly treated as a sale under NIRC Section106(B)?
- Distribution of covered goods or properties to shareholders as a share in profits.
- Moving an unchanged invoice between filing cabinets.
- Merely considering whether to advertise a product.
- Reading a supplier's catalog without any transaction.
- A shareholder's private purchase unrelated to the business.
Legal references
- NIRC Sections57-58,105-106 and110: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA11976, Sections9-10, current NIRC58(E) credit/refund conditions and trust-fund rule: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
Answer this question in flashcards to review your response and continue practicing.