ReSA PB

Question 1

Under absolute community of property, which of the following is a community property?
*Property inherited by the surviving spouse during the marriage
*Property bought during the marriage using the salary of the decedent earned before marriage
*Personal belongings (e.g. clothes, shoes, etc.) bought during the marriage for the exclusive use of the decedent
*Jewelry inherited by the decedent during the marriage

Answer 1

Property bought during the marriage using the salary of the decedent earned before marriage

Question 2

Which of the following will not be included in the gross estate of a resident alien decedent.
*Land located outside the Philippines donated inter vivos to his son
*Intangible personal property located in the Philippines, his country does not tax intangibles situated in his country owned by Filipinos who are not resident therein
*Proceeds of life insurance where the beneficiary is the estate irrevocably designated
*Claims against a person who absconded, wholly uncollectible

Answer 2

Land located outside the Philippines donated inter vivos to his son

Question 3

Which of the following is not subject to the rule of reciprocity?
*Shares in a Philippine domestic corporation owned by a nonresident alien decedent
*Investment in stock in a US corporation 80% of the business of which is in the Philippines owned by a non-resident alien decedent
*Investment in bonds in a US corporation that have acquired business
situs in the Philippines owned by a non-resident alien decedent
*Share in a Philippine partnership owned by a nonresident alien
decedent

Answer 3

Investment in stock in a US corporation 80% of the business of which is in the Philippines owned by a non-resident alien decedent

Shares, obligations or bonds issued by any foreign corporation 85% of the business of which is located in the Philippines

Question 4

A married decedent had the following real properties among other properties left:
>Vacation house, Baguio (exclusive property of decedent) P5,250,000
>Beach house, Batangas (conjugal property) 4,000,000
>Residential house and lot, Manila (conjugal property) 6,000,000
>Farm house, Masbate (exclusive property of surviving spouse) 3,000,000
The decedent resided in Manila as certified by the Barangay Captain in the locality where his residential house and lot were located. For estate tax purposes, the amount of property to be included in his gross estate and the deduction for family home would be: Gross estate and Family home deduction
*P18,250,000; P10,000,000
*P18,250,000; P 6,000,000
*P15,250,000; P 6,000,000
*P15,250,000; P 3,000,000

Answer 4

P15,250,000; P 3,000,000

Question 5

Which of the following is not a remedy against indirect double taxation?
*Vanishing deduction
*Tax credit for foreign estate tax
*Exemption from transfer tax of merger of usufruct in the owner of the naked title
*Transfer for public use

Answer 5

Tax credit for foreign estate tax

Question 6

When is a certified copy of the schedule of partition and the order of the court ordering the same filed?
*Within 2 months after decedent’s death
*Within 6 months after decedent’s death
*Within 30 days after decedent’s death
*Within 30 days after the promulgation of such order

Answer 6

Within 30 days after the promulgation of such order

Question 7

Properties acquired by gratuitous title during the marriage are generally classified as:
I – Conjugal properties under conjugal partnership of gains
II – Community properties under absolute community of properties

*Only I is correct;
*Only II is correct;
*Both I and II are correct
*Both I and II are incorrect.

Answer 7

Both I and II are incorrect.

Question 8

Mr. J. Cruz transferred P200,000 mortis causa to a religious organization. During the year, the total expenses of the religious organization was P5,000,000, 30% of which was for administration. How much of the transferred amount would be exempt for estate tax purposes?
*Zero
*P100,000
*P10,000
*P200,000

Answer 8

Zero

All bequest, devises, legacies or transfers to social welfare, cultural and charitable institutions, no part of the net income of which inures to the benefit of any individual: Provided, however, that not more than 30% of the said bequest, devises, legacies or transfers shall be used by such institutions for administration purposes.

Question 9

A resident decedent, single and head of family, left the following:
>Personal properties, outside the Philippines P10,000,000
>Real properties, Philippines (excluding family home valued at P10,500,000) 12,000,000
>Deductions claimed (including actual funeral expenses of P200,000, and medical expenses of P600,000) 1,900,000
How much was the taxable net estate?
*P31,400,000
*P21,500,000
*P26,500,000
*P16,500,000

Answer 9

P16,500,000

Gross estate (10,000,000 + 10,500,000 + 12,000,000) P32,500,000
Less: Ordinary deductions (1,900,000 – P800,000) 1,100,000
Estate after ordinary deductions 31,400,000
Less: Special deductions
Standard deductions (5,000,000)
Family home deduction (10,000,000)
Net taxable estate P16,500,000

Question 10

A resident citizen died on September 3, 2020. An administrator was appointed on September 15, 2020. The inventory taking of the decedent’s properties was completed on October 10, 2020. To avoid penalties, the estate tax return shall be filed on or before:
*September 3, 2021
*October 10,2021
*September 15,2021
*April 15, 2022

Answer 10

September 3, 2021

Question 11

Which of the following donations will be taxable in the Philippines.
*Donation of real property located outside the Philippines made by a nonresident alien donor
*Donation of intangibles situated in the Philippines made by a nonresident alien donor when there is reciprocity
*Donation of tangible personal property situated in the Philippines made by a nonresident alien donor when there is reciprocity
*Donation to the National Government for public use

Answer 11

Donation of tangible personal property situated in the Philippines made by a nonresident alien donor when there is reciprocity

Question 12

Donato donated a conjugal property to his son with the consent of his wife on account of the son’s forthcoming marriage. The value of the donation was P1,000,000. Unpaid mortgage on the property was P300,000 and unpaid real estate tax was P100,000 which were assumed by the donee. The total deductions of Donato were:
*P200,000
*P300,000
*P210,000
*P310,000

Answer 12

P200,000

Question 13

One of the following is not an important factor when computing the taxable net gifts and the gift tax payable:
*Residence of the donor
*Citizenship of the donor
*Blood relationship between the donor and the donee
*The legal capacity of the donor

Answer 13

Blood relationship between the donor and the donee

Question 14

John sold his car to his brother Samuel. The sold car had a cost of P500,000. It was sold for P300,000 at the time when its fair market value was P400,000. For donor’s tax purposes, which of the following statements is CORRECT?
*The sale was not subject to donor’s tax because it was sold at a loss
*There was a deemed gift of P200,000
*There was a deemed gift of P100,000
*The transfer involved a personal property, hence, not subject to donor’s tax

Answer 14

There was a deemed gift of P100,000

Question 15

Is notice of donation required to be given to the Revenue District Office?
*Yes, on every donation regardless of the amount *Yes, when the donor is engaged in business and the amount of donation is at least P50,000
*No, notice of donation is not required
*Yes, when the property donated is real property

Answer 15

Yes, when the donor is engaged in business and the amount of donation is at least P50,000

Question 16

Which of the following donations inter vivos may not require that it be made in writing?
*Donation of personal (movable) property, the value of which exceeds P5,000
*Donation of personal (movable) property, the value of which is P5,000
*Donation of real (immovable) property, the value of which is less than P5,000
*Donation of real (immovable) property, the value of which exceeds
P5,000

Answer 16

Donation of personal (movable) property, the value of which is P5,000

Art. 748. The donation of a movable may be made orally or in writing.
An oral donation requires simultaneous delivery of the thing or of the document representing the right donated.
If the value of the personal property donated exceeds five thousand pesos, the donation and acceptance shall be made in writing. Otherwise, the donation shall be void.

Question 17

One of the following is not a distinction between donation inter vivos and donation mortis causa.
*Donation inter vivos takes effect during the lifetime of the grantor while donation mortis causa takes effect after the death of the grantor.
*Donation inter vivos is subject to donor’s tax while donation mortis causa is subject to estate tax.
*Donation inter vivos requires a public document while donation mortis causa may not require a public document.
*Donation inter vivos is valued at fair market value at the time the property is given while donation mortis causa is valued at the fair market value at the time of the death of the grantor.

Answer 17

Donation inter vivos requires a public document while donation mortis causa may not require a public document.

Article 748, Civil Code of the Philippines
Article 749, Civil Code of the Philippines

Question 18

Motivated by love, Mr. D donated a car to his brothers, Mr. E and Mr. F, the naked title to Mr. E and usufruct to Mr. F for one year. Is the transfer of the car, naked title to Mr. E and usufruct to Mr. F a valid donation?
*Yes the transfer of the naked title to E and usufruct to F is a valid donation, provided all the donees are living at the time of donation.
*No, the donation is not valid because it is specifically provided in
the Civil Code that such donation is not allowed.
*Yes the donation is valid provided that Mr. E agrees to the donation of usufruct to Mr. F.
*No, the donation is not valid because a right (usufruct) cannot be donated.

Answer 18

Yes the transfer of the naked title to E and usufruct to F is a valid donation, provided all the donees are living at the time of donation.

Article 756, Civil Code of the Philippines

Question 19

Donor’s tax is:
*a property tax.
*a business tax.
*a personal tax.
*an excise tax.

Answer 19

an excise tax.

Question 20

As a general rule, when is the donation completed?
*The moment the donor knows of the acceptance by the donee
*The moment the thing donated is delivered, either actually or constructively, to the donee
*Upon payment of the donor’s tax
*Upon execution of the deed of donation

Answer 20

The moment the donor knows of the acceptance by the donee

Question 21

One of the following taxes had been replaced by VAT:
*Advance sales tax
*Tax on life insurance premiums
*Common carrier’s tax on transport of passengers
*Franchise tax on electric, water and gas utilities

Answer 21

Advance sales tax

Question 22

One of the following is a zero-rated sale.
*Export of a person who is VAT registered
*Sale of non-food agricultural products
*Sale of gold to Bangko Sentral ng Pilipinas
*Sale of cotton and cotton seeds

Answer 22

Export of a person who is VAT registered

Question 23

Which of the following is allowed to claim presumptive input tax?
*Processor of canned fruits
*Miller of refined sugar not for his account
*Miller of refined sugar for his own account
*Public works contractor with respect to private sector contracts

Answer 23

Miller of refined sugar for his own account

Question 24

A VAT-registered seller sold goods to Asian Development Bank. It failed to get an approved zero-rating from the BIR. As a consequence of the failure to the get the approval:
*The sale should be exempt from VAT
*The sale should be subject to 10% VAT
*The sale shall be subject to 0% VAT
*The sale shall not be subject to any business tax

Answer 24

The sale shall be subject to 0% VAT

Question 25

Which
TAX First Pre-Board Exam
of the following will give rise to a creditable input tax?
*Importation of goods for sale, VAT on importation is still unpaid
*Purchase of services, bill still unpaid
*VAT on cash purchase of raw materials from VAT-exempt supplier who issued VAT invoice
*Purchase of supplies from a VAT-registered supplier who issued non-
VAT invoice

Answer 25

VAT on cash purchase of raw materials from VAT-exempt supplier who issued VAT invoice

Question 26

To avoid penalties, the quarterly VAT return shall be filed:
*on or before the 30th day after the end of the quarter.
*on or before the 25th day after the end of the quarter.
*on or before the 20th day after the end of the quarter.
*on or before the 15th day after the end of the quarter.

Answer 26

on or before the 25th day after the end of the quarter.

Question 27

The beginning inventory of a taxpayer who started a business which he registered under the VAT system in the year 2020 follows:
>VAT-subject beginning inventory, at cost P5,000,000
>VAT-subject beginning inventory, net realizable value 7,000,000
>VAT-exempt beginning inventory, at cost 8,000,000
>VAT-exempt beginning inventory, at net realizable value 6,000,000
>Actual VAT paid 600,000
The allowable transitional input tax in 2020 is:
*P600,000.
*P220,000.
*P300,000.
*None, not allowed transitional input tax.

Answer 27

P600,000

Transitional input tax (11,000,000 x 2%) P220,000
Value added tax paid P600,000
Transitional input tax P600,000

Question 28

One of the following is not subject to VAT on importation:
*Goods brought into the Philippines in the course of trade or business by a VAT-registered person
*Goods brought into the Philippines not in the course of trade or
business by a person who is not VAT-registered
*Tax-free goods acquired by person who is not exempt from the tax on
importation from persons who are exempt from tax on importation
*Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from
abroad

Answer 28

Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from
abroad

Question 29

Mr. Jose Cruz, mango plantation owner, sold ripe mangoes to Juan Santos, fresh fruit vendor. Mr. Santos sold the ripe mangoes he bought from Mr. Cruz to Mr. Pedro Reyes, canned fruit processor. Who shall be subject to value-added tax on sales?
*Jose Cruz only
*Jose Cruz and Mr. Juan Santos
*Mr. Pedro Reyes
*None among the three

Answer 29

Mr. Pedro Reyes

Question 30

Ms. Juana Cruz, not VAT-registered, was sent a package of goods by his sister who was abroad. The package was claimed by Juana. The Bureau of Customs required her to pay VAT on importation. Juana refused to pay the tax on the ground that she was not VAT-registered and therefore not an importer. Was Juana’s ground in refusing to pay VAT correct?
*Yes, because only VAT-registered importers should be subject to VAT.
*No, because importations, unless exempted, should be subject to VAT.
*Yes, because the goods were for her personal use, and therefore, she was not an importer;
*No, because the package of goods sent by her sister had value.

Answer 30

No, because importations, unless exempted, should be subject to VAT.

Question 31

Gross receipts tax is a business tax paid by a:
*hotel operator
*franchise holder.
*non-life insurance company.
*bank.

Answer 31

bank

Question 32

The Safer Bank received the following during the first quarter of 2020:
Interest from lending activities:
Remaining maturities of instruments (Interest earned)
5 years or less P200,000
More than 5 years 55,000
Lease of property (Gross receipts) P500,000
The percentage tax due for the month of the Safer Bank was:
*P70,550.
*P10,550.
*P45,550.
*not subject gross receipts tax.

Answer 32

P45,550

Question 33

A boxing championship featuring Filipino boxers was held in the Philippines, and was promoted by Filipinos. The gate receipts amounted to P5,000,000, and the amount received from TV coverage was P3,000,000. How much was the amusement
tax due? (World championship; Philippine championship)
*P1,440,000; P1,440,000
*P800,000; Exempt
*Exempt; P 800,000
*Exempt; Exempt

Answer 33

Exempt; P 800,000

Question 34

A telephone company offers its services for domestic calls and overseas calls. What business taxes are due?
*VAT on domestic calls and overseas communications tax on overseas calls, both imposed on the owner of the communication facilities;
*VAT on both services imposed on the owner of the communication facilities
*Overseas communications tax on both services imposed on the user of communication facilities;
*VAT on domestic calls imposed on the owner of communication facilities and overseas communications tax on overseas calls imposed on the user of the communication facilities.

Answer 34

VAT on domestic calls imposed on the owner of communication facilities and overseas communications tax on overseas calls imposed on the user of the communication facilities.

Question 35

In a particular month during the year 2022, a closely held corporation had its initial public offering at the Philippine Stock Exchange. The total number of shares sold during the IPO was 300,000. Before the IPO, the total outstanding shares were 900,000. The gross value of the initial offering was P10,000,000. How much was the tax on the initial public offering under Section 127 (B) of the NIRC?
*P400,000
*P100,000
*P200,000
*Not subject to IPO Tax

Answer 35

Not subject to IPO Tax

Question 36

A domestic carrier by water is engaged in the transport of passengers, goods and cargoes. It is not VAT-registered and its annual gross receipts do not exceed P3,000,000. To what business taxes is it liable?
*12% value-added tax
*3% tax on VAT-exempt persons
*3% common carrier’s tax
*Not subject to business tax

Answer 36

3% tax on VAT-exempt persons

Question 37

A domestic keeper of garage whose gross receipts for the year exceed the VAT threshold is subject to:
*value-added tax.
*garage sales tax.
*common carrier’s tax.
*franchise tax.

Answer 37

common carrier’s tax.

Question 38

Shares of stock held as investment listed and sold through the local stock exchange shall be subject to:
*6/10 of 1% percentage tax based on gross selling price or gross value in money.
*12% VAT based on gross income.
*capital gains tax of 15% based on net capital gain.
*4%; 2%; 1% percentage tax based on gross selling price or gross value in money.

Answer 38

6/10 of 1% percentage tax based on gross selling price or gross value in money.

Question 39

Premium on Health and Accident Insurance, whether received by a life or non-life insurance company shall be subject to:
*12% Value-Added Tax.
*premium tax under Section 123 of NIRC, as amended.
*Franchise tax under Section 119 of NIRC, as amended.
*Percentage Tax on VAT-Exempt Persons under Section 116 of NIRC, as
amended

Answer 39

premium tax under Section 123 of NIRC, as amended.

Question 40

Agence France Press, a news service, has used communication facilities to send its news to its head office in Paris, France. During the current quarter, it paid a total of P500,000 for its overseas communications originating from the Philippines. How much is the overseas communications tax due?*P 60,000
*P 25,000
*P 50,000
*None

Answer 40

None

Question 41

Which of the following individual taxpayers is taxed on income from sources within and without the Philippines?
*A citizen of the Philippines residing therein.
*A non-resident citizen.
*An individual citizen of the Philippines who is working and deriving
income abroad as an overseas contract worker.
*An alien individual, whether a resident or not of the Philippines.

Answer 41

A citizen of the Philippines residing therein.

Question 42

Which of the following shall not be included in the term “trade, business or profession”?
*Performance of the functions of a public office.
*Performance of services to the general public for a fee.
*Performance of services as an employee.
*None of the choices.

Answer 42

Performance of services as an employee.

Question 43

Denzell Wetta, an American management expert is hired by a Philippine corporation to assist in its organization and operation for which he has to stay in the Philippines for 5 months. He came to the Philippines for this definite purpose but the nature of his job may require him to extend his stay and live temporarily in the Philippines. The American management expert intends to leave the Philippines as soon as his job is done. For income tax purposes, the American management expert shall be classified as:
*resident alien.
*nonresident alien engaged in trade or business.
*nonresident alien not engaged in trade or business.
*resident citizen.

Answer 43

resident alien.

Question 44

A mixed income earner individual having income from his employment (compensation income) and from practice of his professional (professional income) failed to indicate in his first quarter return that he is availing of the 8% income tax rate. His gross receipts from the practice of profession does not exceed the VAT threshold. To what tax will his income be subject to? (Compensation income; Professional income)
*Graduated income tax; Graduated income tax
*8% income tax; 8% income tax
*Graduated income tax; 8% income tax
*8% income tax; Graduated income tax

Answer 44

Graduated income tax; Graduated income tax

Question 45

For income tax purposes, the income tax return shall be filed:
*by the husband being head of the family.
*by the spouse who has higher income
*by both spouses jointly.
*by the wife is authorized by the husband.

Answer 45

by both spouses jointly.

Question 46

The 8% income tax is based on:
*gross sales or gross receipts.
*gross sales or gross receipts and other non-operating income.
*gross income.
*net income.

Answer 46

gross sales or gross receipts and other non-operating income.

Question 47

Which of the following statements is incorrect with respect to Optional Standard Deduction allowed to individuals?
*In lieu of the deductions allowed (itemized), an individual subject to tax under Section 24, other than a nonresident alien, may elect a standard deduction in an amount not exceeding forty percent (40%) of his gross sales or gross receipts, as the case may be.
*Unless the taxpayer signifies in his return his intention to elect the optional standard deduction, he shall be considered as having availed himself of the itemized deductions allowed.
*An individual who is entitled to and claimed for the optional standard deduction shall not be required to submit with his tax return such financial statements otherwise required under the Tax Code.
*An individual who is entitled to and claimed for the optional standard deduction shall no longer keep such records pertaining to his gross sales or gross receipts.

Answer 47

An individual who is entitled to and claimed for the optional standard deduction shall no longer keep such records pertaining to his gross sales or gross receipts.

Question 48

Under the global system of income taxation:
*there is no need for classification of income as all taxpayers are subject to a single rate.
*there are different categories of taxable income.
*there are different tax rates.
*individuals are subject to different tax treatments.

Answer 48

there is no need for classification of income as all taxpayers are subject to a single rate.

Question 49

A purely compensation income earner whose gross compensation income does not exceed the VAT threshold shall be subject to:
*graduated income tax.
*8% income tax.
*graduated income tax or 8% income tax at his option.
*other percentage tax in addition to income tax.

Answer 49

graduated income tax.

Question 50

A pure business or professional income earner who initially availed of the 8% income tax and whose gross receipts exceed the VAT threshold during the year shall be subject to:
*Graduated income tax and VAT on his total gross receipts.
*Graduated income tax and percentage tax on the first P3,000,000 gross receipts and 12% VAT on the excess of P3,000,000.
*8% income tax and percentage on all his gross receipts.
*Graduated income tax and VAT in the succeeding year.

Answer 50

Graduated income tax and percentage tax on the first P3,000,000 gross receipts and 12% VAT on the excess of P3,000,000.

Question 51

The decedent was a married man with a surviving spouse had the following data:
>Conjugal real properties (including land valued at P500,000 transferred to a son to reward him for services rendered) P 5,500,000
>Exclusive family home 2,000,000
>Other exclusive properties (excluding properties valued at P200,000 inherited by the decedent during the marriage) 3,300,000
>Conjugal ordinary deductions
~Funeral expenses P 150,000
~Other deductions (including P100,000 unpaid mortgage 1,300,000 on conjugal real properties) 1,300,000
~Medical expenses 500,00

How much is the total gross estate?
*P11,000,000
*P10,800,000
*P10,500,000
*P10,000,000

Answer 51

P10,500,000

Question 52

The decedent was a married man with a surviving spouse had the following data:
>Conjugal real properties (including land valued at P500,000 transferred to a son to reward him for services rendered) P 5,500,000
>Exclusive family home 2,000,000
>Other exclusive properties (excluding properties valued at P200,000 inherited by the decedent during the marriage) 3,300,000
>Conjugal ordinary deductions
~Funeral expenses P 150,000
~Other deductions (including P100,000 unpaid mortgage 1,300,000 on conjugal real properties) 1,300,000
~Medical expenses 500,00

How much is the ordinary deductions?
*P1,550,000
*P1,500,000
*P1,450,000
*P1,300,000

Answer 52

P1,300,000

Question 53

The decedent was a married man with a surviving spouse had the following data:
>Conjugal real properties (including land valued at P500,000 transferred to a son to reward him for services rendered) P 5,500,000
>Exclusive family home 2,000,000
>Other exclusive properties (excluding properties valued at P200,000 inherited by the decedent during the marriage) 3,300,000
>Conjugal ordinary deductions
~Funeral expenses P 150,000
~Other deductions (including P100,000 unpaid mortgage 1,300,000 on conjugal real properties) 1,300,000
~Medical expenses 500,00

How much is the special deduction?
*P15,000,000
*P10,000,000
*P7,000,000
*P6,000,000

Answer 53

P7,000,000

Question 54

The decedent was a married man with a surviving spouse had the following data:
>Conjugal real properties (including land valued at P500,000 transferred to a son to reward him for services rendered) P 5,500,000
>Exclusive family home 2,000,000
>Other exclusive properties (excluding properties valued at P200,000 inherited by the decedent during the marriage) 3,300,000
>Conjugal ordinary deductions
~Funeral expenses P 150,000
~Other deductions (including P100,000 unpaid mortgage 1,300,000 on conjugal real properties) 1,300,000
~Medical expenses 500,00

How much is the taxable net estate?
*P2,220,000
*P2,200,000
*P700,000
*P350,000

Answer 54

P350,000

Question 55

The decedent was a married man with a surviving spouse had the following data:
>Conjugal real properties (including land valued at P500,000 transferred to a son to reward him for services rendered) P 5,500,000
>Exclusive family home 2,000,000
>Other exclusive properties (excluding properties valued at P200,000 inherited by the decedent during the marriage) 3,300,000
>Conjugal ordinary deductions
~Funeral expenses P 150,000
~Other deductions (including P100,000 unpaid mortgage 1,300,000 on conjugal real properties) 1,300,000
~Medical expenses 500,00

How much is the estate tax due and payable?
*P133,200
*P42,000
*P132,000
*P21,000

Answer 55

P21,000

Question 56

The following donations during the calendar year 2020 are made to relatives:
January 30, 2020 P 2,000,000
March 30, 2020 1,000,000
August 15, 2020 500,000

How much is the tax due on the gift made on January 30, 2020?
*P 120,000
*P 102,000
*P 105,000
*P 100,000

Answer 56

P 105,000

Question 57

The following donations during the calendar year 2020 are made to relatives:
January 30, 2020 P 2,000,000
March 30, 2020 1,000,000
August 15, 2020 500,000

How much is the tax due on the gift made on March 30, 2020?
*P 180,000
*P 60,000
*P 165,000
*P 45,000

Answer 57

P 60,000

Question 58

The following donations during the calendar year 2020 are made to relatives:
January 30, 2020 P 2,000,000
March 30, 2020 1,000,000
August 15, 2020 500,000

How much is the tax due on the gift made on August 15, 2020?
*P 195,000
*P 60,000
*P 165,000
*P 30,000

Answer 58

P 30,000

Question 59

Hotel California, VAT-registered, offers different services to its guests. The following data taken from the books of the taxpayer are for the first quarter of 2015: (Revenues; Collections)
>Hotel rooms (local guests) P 800,000; P 700,000
>Dining hall:
~Sale of food and refreshments 1,000,000; 850,000
~Sale of wine, beer and liquor 700,000; 600,000
>Disco:
~Sale of food and refreshments 600,000; 550,000
~Sale of wine, beer and liquor 500,000; 450,000

How much output tax for the first quarter of 2015 using 12% VAT rate?
*P 432,000
*P 378,000
*P 258,000
*None of the choices

Answer 59

P 258,000

Question 60

Hotel California, VAT-registered, offers different services to its guests. The following data taken from the books of the taxpayer are for the first quarter of 2015: (Revenues; Collections)
>Hotel rooms (local guests) P 800,000; P 700,000
>Dining hall:
~Sale of food and refreshments 1,000,000; 850,000
~Sale of wine, beer and liquor 700,000; 600,000
>Disco:
~Sale of food and refreshments 600,000; 550,000
~Sale of wine, beer and liquor 500,000; 450,000

How much is the amusement tax?
*P378,000
*P198,000
*P180,000
*P150,000

Answer 60

P180,000

Question 61

Your client is engaged in several transactions that are subject to business taxes. The following data are presented for your perusal.
>Gross receipts, sale of gas and water P3,500,000
>Expenses, sale of gas and water 1,000,000
>Gross receipts, rentals of office spaces 3,500,000
>Expenses, rental of office spaces 500,000
>Total premiums collected, life insurance premiums 4,000,000
>Expenses, life insurance business 1,000,000

How much is the business tax of the sale of gas and water?
*P105,000
*P50,000
*P70,00
*None of the choices

Answer 61

P70,00

Question 62

Your client is engaged in several transactions that are subject to business taxes. The following data are presented for your perusal.
>Gross receipts, sale of gas and water P3,500,000
>Expenses, sale of gas and water 1,000,000
>Gross receipts, rentals of office spaces 3,500,000
>Expenses, rental of office spaces 500,000
>Total premiums collected, life insurance premiums 4,000,000
>Expenses, life insurance business 1,000,000

How much is the business tax on the rent of office spaces, assuming the taxpayer is not VAT-registered?
*P420,000
*P70,000
*P105,000
*None of the choices

Answer 62

P420,000

Question 63

Your client is engaged in several transactions that are subject to business taxes. The following data are presented for your perusal.
>Gross receipts, sale of gas and water P3,500,000
>Expenses, sale of gas and water 1,000,000
>Gross receipts, rentals of office spaces 3,500,000
>Expenses, rental of office spaces 500,000
>Total premiums collected, life insurance premiums 4,000,000
>Expenses, life insurance business 1,000,000

If the taxpayer is a concessioner of a franchise grantee of water utilities, not VAT-registered, how much is the business tax, if any?
*P840,000
*P420,000
*P140,000
*Answer not given

Answer 63

P840,000

Question 64

Your client is engaged in several transactions that are subject to business taxes. The following data are presented for your perusal.
>Gross receipts, sale of gas and water P3,500,000
>Expenses, sale of gas and water 1,000,000
>Gross receipts, rentals of office spaces 3,500,000
>Expenses, rental of office spaces 500,000
>Total premiums collected, life insurance premiums 4,000,000
>Expenses, life insurance business 1,000,000

How much is the premiums tax?
*P160,000
*P 80,000
*P40,000
*Not subject to premiums tax

Answer 64

P 80,000

Question 65

The Anong Pizza Na, VAT-registered issued the following official receipt to a customer who was with a senior citizen:
>Ordered by a senior citizen P1,060.00
~Parma pizza P880.00
~Mango basil 180.00
>Ordered by the non-senior citizen 1,200.00
~House salad 420.00
~Beef rendang 590.00
~Avocado smoothie 190.00
>Total sales (VAT inclusive) P2,260.00

How much is the VAT-exempt sale?
* P2,017.85
*P946.43
*None of the choices
*P1,060.00

Answer 65

P946.43

Question 66

The Anong Pizza Na, VAT-registered issued the following official receipt to a customer who was with a senior citizen:
>Ordered by a senior citizen P1,060.00
~Parma pizza P880.00
~Mango basil 180.00
>Ordered by the non-senior citizen 1,200.00
~House salad 420.00
~Beef rendang 590.00
~Avocado smoothie 190.00
>Total sales (VAT inclusive) P2,260.00

How much is the sales discount for senior citizen?
*P403.57
*P212.00
*P189.29
*None of the choices

Answer 66

P189.29

Question 67

The Anong Pizza Na, VAT-registered issued the following official receipt to a customer who was with a senior citizen:
>Ordered by a senior citizen P1,060.00
~Parma pizza P880.00
~Mango basil 180.00
>Ordered by the non-senior citizen 1,200.00
~House salad 420.00
~Beef rendang 590.00
~Avocado smoothie 190.00
>Total sales (VAT inclusive) P2,260.00

How much is the total amount due?
*P2,260.00
*P2,140.00
*P2,017.85
*None of the choices

Answer 67

P2,140.00

Question 68

To improve her body shape Paz Seksi decided to undergo procedure and sought the services of Body Beautiful, a clinic operated outside the hospital and owned by Bello Medical Group, Inc. Body Beautiful charged Ms. Pax Seksi the amount of P50,000 (inclusive of 12% VAT but exclusive of 5% excise tax) for the service rendered.

How much is the excise tax?
*P2,500.00
*P2,232.14
*P2,233.00
*Not subject to excise tax

Answer 68

P2,232.14

Question 69

To improve her body shape Paz Seksi decided to undergo procedure and sought the services of Body Beautiful, a clinic operated outside the hospital and owned by Bello Medical Group, Inc. Body Beautiful charged Ms. Pax Seksi the amount of P50,000 (inclusive of 12% VAT but exclusive of 5% excise tax) for the service rendered.

How much is the VAT?
*P6,000.00
*P5,625.00
*P5,357.14
*Not subject to VAT

Answer 69

P5,625.00

Question 70

To improve her body shape Paz Seksi decided to undergo procedure and sought the services of Body Beautiful, a clinic operated outside the hospital and owned by Bello Medical Group, Inc. Body Beautiful charged Ms. Pax Seksi the amount of P50,000 (inclusive of 12% VAT but exclusive of 5% excise tax) for the service rendered.

How much is the total amount to be collected from Ms. Paz Seksi?
*P52,500.00
*P46,375.00
*P49,767.86
*P44,642.85

Answer 70

P52,500.00