1. [单选题]In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.
A. What is the correct treatment of the estate income for individual income tax purposes?
B. The estate income is not taxable
C. The estate income will be taxed as occasional (ad hoc) income
D. The estate income will be taxed as other income
E. The estate income will be taxed as service income
2. [单选题]5 Which of the following factors could cause a company’s gross profit percentage on sales to fall below the expected
level? 1 Understatement of closing inventories. 2 The incorrect inclusion in purchases of invoices relating to goods supplied in the following period. 3 The inclusion in sales of the proceeds of sale of non-current assets. 4 Increased cost of carriage charges borne by the company on goods sent to customers.
A. 3 and 4
B. 2 and 4
C. 1 and 2
D. 1 and 3
