Philippine Christian University - Dasmarinas Campus

JOMARK V. YBAROLA BUSINESS TAXATION

BS ACCOUNTANCY-2 FINAL EXAMINATION

CHAPTER 12: INTRODUCTION TO TRANSFER TAXATION

Multiple Choice- Theory: Part 1

1. D
2. C
3. B
4. B
5. A
6. C
7. A
8. A
9. A
10. A
11. No Answer. ( All of these are considered as rationalization of transfer taxation)
12. B
13. D
14. C
15. A
16. A
17. C
18. B
19. D
20. C
21. A
22. B

Multiple Choice- Theory: Part 2

1. A
2. C
3. D
4. C
5. C

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 Philippine Christian University - Dasmarinas Campus

6. B
7. D
8. B
9. D
10. B
11. B
12. D
13. B
14. D
15. A
16. B
17. A
18. D
19. C
20. C
21. C
22. D
23. C

Multiple Choice- Problem: Part 1

1. C. 1,000,000
2. D. 1,200,000
3. A
4. C
5. (4,000,000 + 800,000 + 2,100,000) = C. 6,900,000
6. (400,000 + 1,000,000 + 3,000,000) = D. 4,400,000
7. (400,000 + 1,000,000 + 3,000,000) = D. 4,400,000
8. (400,000 + 1,000,000 + 3,000,000) = D. 4,400,000
9. (400,000 + 1,000,000) = B. 1,400,000
10. A. 1,000,000

Multiple Choice- Problem: Part 2

1. (4,000,000 + 500,000 + 3,000,000) = D. 7,500,000

2. (3,000,000 + 500,000) = C 3,500,000
3. B. 3,000,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

4. (4,500,000 – 2,500,000) = D. 2,000,000

5. (4,500,000 – 2,500,000) = D. 2,000,000
6. (4,000,000 – 2,500,000) = 1,500,000; 0 B.
7. B. 1,100,000; Donor’s Tax
8. D. 1,600,000; Estate Tax
9. D. None; None
10. A. 0

Multiple Choice- Problem: Part 3

1. [(500,000+ (80,000 – 20,000 = 60,000)] = B. 560,000

2. (4,000,000 – 1,500,000) = 2,500,000; Donor’s Tax C.
3. (5,000,000 -1,500,000) = 3,500,000; Estate Tax D.
4. A. 0
5. A. 0
6. B. Donor’s Tax
7. D
8. D
9. D
10. A. 0; None
11. A
12. D
13. C

CHAPTER 13: THE CONCEPT OF SUCCESSION & ESTATE TAX

Multiple Choice- Theory 1

1. B
2. B
3. A
4. B
5. B
6. C
7. A
8. B

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

9. A
10. A
11. B
12. C
13. D
14. A
15. C

Multiple Choice- Theory 2

1. C
2. D
3. D
4. A
5. B
6. A
7. B
8. B
9. B
10. B
11. B
12. A
13. B
14. B
15. D
16. (1.0 x 4 = 4/5 x 1,000,000 = 800,000/ 4) = 200,000;
(0.5 x 2 = 1/5 x 1,000,000 = 200,000/2) =100,000 C
17. (1.0 x 3 = 3/4.5 x (6,000,000/2 + 1,500,000= 4,500,000) = 3,000,000/3] =
1,000,000 B
18. [(1.0 x 1 = 1/4.5 x 4,500,000 = 1,000,000 + (6,000,000/2)] = 4,000,000 B

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

CHAPTER 13 – A: ESTATE TAX: GROSS ESTATE

Multiple Choice- Theory 1

1. D
2. B
3. A
4. C
5. B
6. B
7. A
8. C
9. A
10. D
11. C
12. D
13. D
14. A
15. C
16. B
17. D
18. B
19. D
20. C
21. A
22. C
23. C
24. A
25. D
26. A
27. A

Multiple Choice- Theory 2

1. D
2. C
3. A

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 Philippine Christian University - Dasmarinas Campus

4. A
5. C
6. A
7. D
8. D
9. C
10. D
11. D
12. D
13. B ( Higher between zonal value and assessed value)
14. B (200,000 x 48.20) = 9,640,000
15. C ($2,000 x 42.50) = 85,000

Multiple Choice- Problem 1

1. (7,000,000 – 300,000 + 600,000) = B. 7,300,000

2. (400,000 + 5,000,000 + 350,000) = C. 5,750,000
3. (80,000 + 900,000 + 70,000) = B. 1,050,000
4. D. 12,000,000
5. B. 12,000,000
6. (500,000 + 2,500,000 + 600,000 + 800,000) = C. 4,400,000
7. (1,200,000 + 800,000 + 400,000 + 200,000) = C. 2,600,000
8. (2,000,000 + 800,000 + 1,000,000 + 1,500,000) = D. 5,300,000
9. (800,000 + 400,000) = C. 1,200,000
10. (12,000,000 + 4,000,000 + 2,000,000 + 3,000,000 + 1,200,000 + 1,800,000) =
D. 24,000,000
11. (2,000,000 + 5,000,000 + 3,000,000 + 4,000,000) = D. 14,000,000
12. (4,000,000 + 2,000,000) = B. 6,000,000
13. A. 0
14. (800,000 + 1,200,000) = C. 2,000,000
15. C. 14,000,000 (whichever is higher)
16. B. 500,000
17. [(1,000 X 1,000 = 1,000,000) + (40,000 X 300= 12,000,000) + (80,000 X 45=
3,600,000)] = C. 16,600,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

18. [(1,200,000 + 1,800,000 + 4,000,000) + (500 x 1,800 = 900,000)] = D. 7,900,000

19. [(10,000,000 X 40%) + (1,000,000 X 70% = 700,000 X 40%) = C. 4,280,000
20. (25,000/1,000,000 X 8,000,000) = D. 200,000
21. ($124,000 - $24,000 = $100,000 X 42.50) = B. 4,250,000

Multiple Choice- Problem 2

1. (200,000 + 3,000,000 + 2,000,000) = D. 5,200,000

2. (5,000,000 + 1,000,000) = C. 6,000,000
3. (400,000 + 400,000) = C. 800,000
4. D
5. C
6. B
7. A
8. B
9. D
10. (3,000,000 + 1,500,000) = C. 4,500,000
11. (6,000,000 + 2,000,000 + 3,000,000) =D. 11,000,000
12. (8,000,000 + 3,000,000) = C. 11,000,000
13. (5,000,000 + 2,500,000 + 3,700,000) = D. 11,200,000
14. (3,000,000 + 9,000,000) = C. 12,000,000
15. A. 0
16. (2,000,000/125 = 16,000 X 134) = B. 2,144,000
17. A. (1,000,000 x 120 = 120,000,000 + 14,000,000 = 134,000,000/1,000,000 = 123
x 1,000,000 x 20%) = A. 26,800,000
18. C. Yes, the assessment of the CIR is correct because it was based on the value
at the time of assessment.

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

CHAPTER 13 – B: GROSS ESTATE OF MARRIED DECEDENTS

Multiple Choice- Theory 1

1. C
2. A
3. D
4. C
5. B
6. B
7. D
8. C
9. A
10. D
11. A
12. B
13. A
14. D
15. D

Multiple Choice- Theory 2

1. D
2. D
3. D
4. C
5. C
6. D
7. B
8. A
9. B
10. C
11. C
12. A
13. D
14. A
15. A

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

Multiple Choice- Problem 1

1. (1,800,000 – 1,000,000) = B. 800,000

2. (1,000,000 + 800,000) = D. 1,800,000
3. A. 0
4. A. 0
5. (2,000,000 + 1,500,000 + 200,000 +180,000 + 400,000 + 500,000) = D.
4,780,000
6. C. 4,780,000
7. C. 2,000,000
8. C. 1,500,000
9. (200,000 +180,000 + 400,000 + 500,000) = B. 1,280,000
10. (2,000,000 + 1,280,000) = A. 3,280,000
11. (400,000 + 450,000) = C. 850,000
12. (4,000,000 + 500,000) = b. 4,500,000
13. (200,000 + 2,000,000 + 80,000 + 700,000) = B. 2,980,000
14. (850,000 + 2,980,000) = C. 3,830,000
15. B. 450,000
16. (4,000,000 + 700,000 + 500,000) D. 5,200,000
17. (400,000 + 200,000 + 2,000,000 + 80,000) = A. 2,680,000
18. (450,000 + 2,680,00) = A. 3,130,000
19. (20,000 + 280,000 + 400,000) = D. 700,000
20. (30,000 + 470,000 + 300,000) = C. 800,000
21. (30,000 + 40,000 + 290,000 + 500,000 + 80,000 + 60,000) = A. 1,000,000
22. (700,000 + 1,000,000) = B. 1,700,000
23. (20,000 + 30,000 + 400,000 + 80,000) = C. 530,000
24. (30,000 + 40,000 + 300,000 + 60,000) = B. 430,000
25. (280,000 + 270,000 + 290,000 + 500,000) = C. 1,540,000
26. (530,000 + 1,540,000) = C. 2,070,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

Multiple Choice- Problem 2

1. C. 1,200,000
2. B. 2,000,000
3. (1,200,000 + 2,000,000 + 4,000,000) = C. 7,200,000
4. (300,000 + 1,400,000 + 230,000) = B. 1,930,000
5. (150,000 + 1,000,000 + 400,000 + (200,000 x 50% = 100,000) = A. 1,650,000
6. (2,000,000 + 700,000 + 800,000 + 60,000 + 120,000) = C. 3,680,000
7. (1,000,000 + 4,000,000 + 120,000) = C. 5,120,000
8. (2,000,000 + 80,000,000) = A. 82,000,000
9. (2,000,000 + 4,000,000 + 2,000,000) = C. 8,000,000
10. (800,000 + 8,000,000 + 12,000,000 + (4,000,000 – 1,000,000) = C. 23,800,000
11. (4,000,000 + 3,000,000 + 2,000,000) = C. 9,000,000
12. (1,500,000 + 6,000,000 + 2,000,000 + 1,000,000) = A. 10,500,000
13. (1,500,000 + 2,000,000 + 150,000) = A. 3,650,000
14. (1,000,000 + 50,000 + 4,000,000 + 1,000,000) = C. 6,050,000
15. (200,000 + 400,000 + 70,000 + 2,000,000 + 1,200,000) = C. 3,870,000
16. A. 1,800,000
17. C. 4,000,000
18. A. 0
19. B. 7,000,000
20. (12,000,000 + 8,000,000 + 7,000,000 + 24,000,000) = D. 51,000,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

CHAPTER 14- ESTATE TAX: DEDUCTIONS FROM GROSS ESTATE

Multiple Choice- Theory 1

1. B
2. A
3. B
4. C
5. C
6. C
7. B
8. C
9. C
10. A

Multiple Choice- Theory 2

1. A
2. C
3. A
4. C
5. B
6. A
7. D
8. D
9. D
10. A
11. B
12. D
13. D
14. D
15. C
16. B

Multiple Choice– Problems: Part 1

1. (40,000 + 80,000) = A. 120,000

2. (60,000 + 30,000) = C. 90,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

3. (40,000 + 80,000) = D. 120,000

4. C. 80,000; 40,000
5. A. 0
6. B. 0; 300,000
7. D. 1,600,000 (Assessment of lot will be measured at fair value at the decedent’s
death)
8. (3,000,000 – 1,000,000 = 2,000,000 – 200,000 – 300,000 – 150,000 – 250,000 =
1,100,000/2) = A. 550,000

Multiple Choice– Problems: Part 2

1. (4,000,000 – 2,000,000 = 2,000,000 – 200,000 – 100,000 -250,000 – 150,000 =

1,300,000/2) = D. 650,000
2. (3,000,000 – 300,000 – 150,000 = 2,550,000/2) = C. 1,275,000
3. D. 10,000,000 (lower)
4. A. 0. Note (When the property is an exclusive property of the surviving spouse,
none of it is reflected in gross estate. Hence, there should be no deduction in
accordance with the matching rule.
5. (15,000,000 x 50%) = 7, 500,000 C. (the house is measured at fair value and lot
shall not considered as deduction for family home)
6. (12,000,000 x 50 % = 6,000,000) + (3,000,000 x 100% = 3,000,000) = C.
9,000,000
7. (80,000 x 50%) = B. 40,000
8. B. 0; 80,000 (If RA 4917 death is classified as an ordinary deduction, the amount
of benefits must be included in conjugal or communal properties of the spouses
but is removed in full under ordinary deduction)
9. C. 500,000 (Non-resident alien decedents are allowed 500,000 standard
deduction)
10. [(1,000,000 x 60% = 600,000) + (400,000) + (500,000) = C. 1,500,000
11. (3,000,000/10,000,000 = 0.3 x 3,000,000 = 900,000 + 500,000) = A. 1,400,000
12. C. 5,000,000
13. [(1,000,000 – 300,000 = 700,000) – (700,000/7,500,000 = 0.0933333 x
2,100,000 = 196,000) = (504,000 x 60%) = D. 302, 400
14. [(800,000 – 550,000 = 250,000) – (250,000/2,000,000 x (850,000 – 550,000 =
300,000 + 140,000 = 55,000) = (195,000 x 60%)] = C. 117,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

CHAPTER 15: ESTATE TAX PAYABLE

Multiple Choice- Theory

1. D
2. B
3. A
4. A
5. A
6. A
7. D
8. C
9. C
10. D
11. C
12. C
13. C
14. B
15. D
16. D
17. B
18. B

MULTIPLE CHOICE- PROBLEMS: Part 1

1. (14,000,000 + 6,000,000 +8,000,000 = 28,000,000 – 300,000 – 500,000 =

27,200,000 – 10,000,000 – 5,000,000) = A. 12,200,000
2. (28,000,000 – 1,700,000 ) = B. 26,300,000
3. (30,000,000 – 2,800,000 = 27,200,000 – 10,000,000 - 5,000,000) = B.
12,200,000
4. (28,000,000 – 2,400,000 = 25,600,000/2 = 12,800,000 – (12,000,000 x 50% =
6,000,000) – 5,000,000) = C. 1,800,000
5. (12,000,000 + 8,000,000 = 20,000,000 – 1,500,000 = 18,500,000 – 10,000,000
– 5,000,000) = C. 3,500,000
6. (20,000,000 – 2,600,000) = C. 17,400,000
7. (6,800,000 + 250,000 + 150,000 = 7,200,000 – 1,000,000 – 5,000,000) C.
1,200,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

8. (26,000,000 + 10,000,000 = 36,000,000 – 8,000,000 – 4,000,000 = 24,000,000 –

(26,000,000 – 8,000,000 = 18,000,000/2 = 9,000,000) - 5,000,000 = A.
10,000,000
9. [(26,000,000 – 8,000,000 = 18,000,000/ 2 = 9,000,000) + (10,000,000 –
4,000,000 = 6,000,000) = (15,000,000 – (10,000,000 x 6% = 600,000) =
(14,400,000 – (500,000/2 = 250,000) = B. 15,150,000
10. ( 26,000,000 + 24,000,000 = 50,000,000 – 8,000,000 – 5,000,000 = 37,000,000
- (26,000,000 – 8,000,000/2 = 9,000,000) = 28,000,000 – 6,000,000 – 5,000,000)
= C. 17,000,000
11. [(24,000,000 – 5,000,000 = 19,000,000) + (26,000,000 – 8,000,000 =
18,000,000/ 2 = 9,000,000) = (28,000,000 – (17,000,000 x 6% = 1,020,000) =
(26,980,000 – (500,000/2 = 250,000)] = B. 26,730,000
12. (23,750,000 + 550,000 = 24,300,000 – 10,000,000 – 5,000,000) = D. 9,300,000

Multiple Choice- Problems: Part 2

1. (15,600,000 + 12,400,000 = 28,000,000 - 1,800,000 = 26,200,000 – (15,600,000

– (1,800,000 x 75% = 1,350,000) = 14,250,000/2 = 7,125,000) = 19,075,000 –
(15,000,000 x 50% = 7, 500,000) – (5,000,000) = B. 6,575,000
2. (12,400,000 – (1,800,000 x 25% = 450,000) = 11,950,000) + (15,600,000 –
1,350,000 = 14,250,000/2 = 7,125,000) = (19,075,000 – (480,000 + 220,000 =
700,000/2 = 350,000 – (6,575,000 x 6% = 394,500) = 44,500) = B. 19,030,500
3. (4,500,000 + 500,000 = 5,000,000 – 500,000 – (260,000 + 500,000 = 760,000 x
50% = 380,000) = 4,120,000 – 500,000) = D. 3,620,000
4. (4,500,000 – 500,000 – (260,000 + 500,000 = 760,000 x 50% = 380,000) =
4,120,000 – 500,000) = D. 3,120,000
5. (18,000,000 + (32,000,000 – (9,000,000 x 50% = 4,500,000 = 27,500,000) =
45,500,000 – (27,500,000/2 = 13,750,000) = 31,750,000 – (12,.000,000 x 50% =
6,000,000) – 500,000 = D. 25,250,000
6. (1,000,000 + 8,500,000 + 2,000,000 + 15,000,000 + 13,000,000 = 39,500,000 –
2,000,000 – 10,000,000 – 5,000,000) = A. 22,500,000
7. (50,000,000 – 16,000,000 = 34,000,000 – 8,000,000 = 26,000,000 –
(50,000,000/80,000,000 = 0.625 x 5,000,000 = 3,125,000) = C. 22,875,000
8. (30,000,000 – 12,000,000 = 18,000,000 – (30,000,000/80,000,000 = 0.375 x
5,000,000 = 1,875,000) = C. 16,125,000

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 Philippine Christian University - Dasmarinas Campus

9. (1,300,000 + 6,200,000 = 7,500,000 – 300,000 – 1,250,000 = 5,950,000 –

1,300,000 = 4,650,000 – (7,500,000/15,000,000 = 50% x 5,000,000 = 2,500,000)
= 2,150,000; (3,000,000 – 150,000 – 450,000 = 2,400,000 –
(3,000,000/15,000,000 = 0.2 x 5,000,000 = 1,000,000) = 1,400,000; (4,500,000 –
100,000 – 200,000 = 4,200,000 – (4,500,000/15,000,000 = 30% x 5,000,000 =
1,500,000) = 2,700,000 D.
10. (2,150,000 + 1,400,000 + 2,700,000 =6,250,000 x 6% = 375,000); China
(100,000); (1,400,000/6,250,000 = 0.224 x 365,000= 84,000); Taiwan (160,000);
(2,700,000/6,250,000 = 0.432 x 375,000 =162,000); Lower (84,000 + 160,000 =
244,000);Estate tax payable (375,000 – 244,000) = C. 131,000

Multiple Choice- Problems: Part 3

1. (2,000,000 x 3/12 x 10% = 50,000 + 2,000,000) = C. 2,050,000

2. (80,000 x 3/4 = 60,000 + 150,000) = D. 210,000
3. Gross estate (24 + 18 = 42/2 x 100,000 = 2,100,000 + 12,900,000= 15,000,000);
[(2,000,000) – (2,000,000/15,000,000 = 0.1333333 x 3,600,000 = 480,000) =
(1,520,000 x 60%)] = C. 912,000

2. (12,000,000 – 5,000,000 = 7,000,000 x 6%) = C. 420,000

3. (12,000,000 x 40% = 4,800,000 – 500,000 = 4,300,000 x 6%) = A. 258,000

4. [(5,000,000 – 800,000 = 4,200,000) + (20,000,000 + 12,000,000 – 3,800,000 –

500,000 = 27,700,000) = 31,900,000 – (27,700,000/2 = 13,850,000) =
18,050,000 – (12,000,000 x 50% = 6,000,000) – (5,000,000) = B. 7,050,000
5. (20,000,000 – 3,800,000 – 500,000 = 15,700,000 x 50%) = B. 7,850,000
6. [(5,000,000 – 800,000 = 4,200,000) – (20,000,000 – 3,800,000 = 16,200,000/2 =
8,100,00) = (12,300,000 – (7,050,000 x 6% = 423,000 – 400,000 x 50% =
200,000 = 223,000)] = D. 12,077,000
7. {(17,000,000 – 1,800,000 – 200,000 =15,000,000 – 4,500,000 – 5,000,000 =
5,500,000 x 6% = 330,000)}; [17,000,000 – 1,800,000 – 200,000 = 15,000,000 –
330,000 – 300,000) = C. 14,370,000
8. [ (30,000,000 – 6,500,000 = 23,500,000) – (23,500,000/40,000,000 = 0.5875 x
5,500,000 = 3,231,250) = (20,268,750 x 60%) = C. 12,161,250
9. (40,000,000 – 12,161,250 – 5,500,000 – 5,000,000 = 17,338,750 x 6%) = A.
1,040,325

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 Philippine Christian University - Dasmarinas Campus

10. (4,000,000 – 500,000 = 3,500,000 x 6%) = A. 210,000

11. [(20,000,000 + 6,000,000 = 26,000,000 – 1,000,000 – 2,000,000 = 23,000,000)
+ (14,000,000 – 2,000,000 = 12,000,000 + 12,000,000 – 500,000 = 23,500,000)
= (46,500,000 – (23,500,000/2 = 11,750,000) = (34,750,000 – (12,000,000 x 50%
= 6,000,000) - (5,000,000)] = D. 23,750,000

CHAPTER 16: INTRODUCTION TO DONOR’S TAX

Multiple Choice- Theory: Part 1

1. D
2. D
3. A
4. A
5. D
6. B
7. A
8. B
9. B
10. C
11. A/C
12. C
13. D
14. A

Multiple Choice- Theory: Part 2

1. A
2. B
3. C
4. C
5. B
6. A
7. D
8. D
9. C

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 Philippine Christian University - Dasmarinas Campus

10. D
11. D
12. C
13. A
14. D
15. B
16. A
17. B
18. D

Multiple Choice- Problems: Part 1

1. (2,000,000 – 1,200,000) = C. 800,000

2. A. 0 (The selling price is higher than fair value, hence, there’s no need to impose
the donor’s tax)
3. B. 700,000
4. A. 0 (The donation is revocable. The donor’s tax shall not apply unless and until
there is a completed gift)
5. D. 2,500,000
6. C. 3,000,000
7. (5,000,000 – 2,000,000) = C. 3,000,000
8. D. The gratuity portion is a gift subject to a proportional donor’s tax.
9. (1,200,000 + 300,000) = D. 1,500,000
10. C. 1,200,000 (share in the common properties in favor of her child is taxable
regardless of whether the renunciation is specific or general. While, share of
distributable estate shall be exempt because the renunciation is general)

Multiple Choice- Problems: Part 2

1. (600,000 + 400,000 + 300,000 + 900,000) = D. 2,200,000

2. (300,000 + 900,000) = C. 1,200,000
3. B. 900,000
4. (300,000 + 200,000 + 150,000 + 250,000) = D. 900,000
5. (300,000 + 200,000) = C. 500,000
6. B. 3,000,000
7. A. 0
8. B. The donation is exempt because it did not exceed 250,000

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

9. A. 0
10. B. 1,000,000
11. (1,200,000 + 500,000) = B. 1,700,000
12. C. The donation is exempt from donor’s tax

CHAPTER 17: DONOR’S TAX

Multiple Choice- Theory: Part 1

1. C
2. D
3. B
4. B
5. C
6. A
7. A
8. B
9. B
10. B
11. C
12. D
13. A

Multiple Choice- Theory: Part 2

1. B
2. A
3. C
4. C
5. C
6. C
7. B
8. C
9. D
10. C
11. A
12. D

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

13. D
14. D
15. B
16. D
17. D
18. A

Multiple Choice- Problems: Part 1

1. C. The gift is exempt from donor’s tax.

2. A. Eddie shall pay 3,000 donor’s tax. (300,000 – 250,000 = 50,000 x 6% = 3,000)
3. C. Pedro shall report the 500,000 as donation and pay the donor’s tax.
4. B. The donation is exempt from donor’s tax. (not exceed to Vat threshold of
250,000)
5. A. The donation is exempt from donor’s tax. (Always note the Vat threshold of
250,000)
6. A. The entire 1,000,000 donation is exempt from donor’s tax. (Gifts in favor of an
cultural or social welfare corporation, and accredited nongovernment
organizations are exempt from donor’s tax)
7. C. The donation is subject to 825,000 donor’s tax. (14,000,000 – 250,000 =
13,750,000 x 6% = 825,000)
8. C. The transfer is subject to donor’s tax. (The transaction is not onerous, it’s
gratuity)
9. D. Both Mr. and Mrs. Aguinaldo shall report a net gift of 50,000 (500,000 +
100,000 = 600,000/ 2 = 300,000 – 250,000) = 50,000
10. D. 0
11. (800,000/2 = 400,000 – 250,000) = C. 150,000; 150,000
12. (1,000,000 – 200,000 – 250,000) = B. 550,000
13. B. Only Mr. Manolo shall file a donor’s tax return
14. D. Both spouses shall file separate donor’s tax returns.
15. (800,000 + 700,000 = 1,500,000/2 = 750,000 – 250,000) = B. 500,000; 500,000

Multiple Choice- Problems: Part 2

1. (24,000,000 – 18,000,000) = C. 6,000,000

2. (1,000,000 – 100,000) = B. 900,000
3. A. 0 (Donation is exempt donees under the NIRC and special laws)

JOMARK V. YBAROLA
 Philippine Christian University - Dasmarinas Campus

4. [(600,000 – 250,000 = 350,000) + (300,000 – 250,000 = 50,000)] = 400,000. C

5. (2,000,000 + 1,200,000 = 3,200,000/100,000 = 32 x 20,000 common stocks) = D.
640,000
6. (120,000 x 2.8) = C. 336,000
7. D. 0; 400,000
8. [(400,000 – 250,000 = 150,000) + (600,000 – 250,000 = 350,000) + (300,000) =
800,000/2 = 400,000 (both spouses) C.
9. (500,000 – 250,000 = 250,000 + 1,000,000) = c. 1,250,000
10. B. 500,000; 500,000
11. C. 4,000,000
12. (3,000,000 + 4,000,000 + 5,000,000 = 12,000,000 – 250,000) = C. 11,750,000
13. (1,880,000 – 250,000) = A. 1,550,000

Multiple Choice- Problems: Part 3

1. (450,000 – 250,000 = 200,000 x 6% = C. 12,000

2. (400,000 – 250,000 = 150,000 x 6%) = C. 9,000
3. (540,000 – 250,000 = 290,000 x 6%) = C. 17,400
4. [(350,000 – 80,000 = 270,000 x 6% = 16,200) + (80,000 x 7% = 5,600) = C.
21,800
5. A. 0 (The donation does not exceed to Vat Threshold of 250,000)
6. (200,000 + 800,000 = 1,000,000 – 250,000 = 750,000 x 6%) = C. 45,000
7. (400,000 – 250,000 = 150,000 x 6%) = A. 9,000
8. (500,000 x 6% = 30,000 – 12,000) = A. 18,000
9. D. 0 (Mr. Kinoto is a non-resident alien)
10. (600,000 – 250,000 = 350,000 x 6%) = 21,000; (900,000 – 250,000 = 650,000 x
6%) = 39,000 A.
11. [(600,000 + 900,000 = 1,500,000 – 250,000 = 1,250,000 x 6% = 75,000 -10,000
– 39,000) = 26,000); (75,000 – 26,000 -39,000)] = B. 10,000 payable
12. [(700,000 + 300,000 = 1,000,000 – 250,000 = 750,000 x 6% = 45,000) –
(27,000) – (300,000/1,000,000 =0.3 x 45,000 = 13,500)] = B. 4,500
13. (500,000 – 250,000 = 250,000 x 6% = 15,000 – 10,000) = B. 5,000
14. [(2,000,000 + 1,500,000 + 500,000 = 4,000,000 – 250,000 = 3,750,000 x 6% =
225,000) – (110,000)- (1,500,000/4,000,000 = 0.375 x 225,000 = 84,375) = C.
30,625 payable.
15. A. 0 (The donor is a non-resident alien)

JOMARK V. YBAROLA