1. Mr. Talib, with a will, died leaving the following properties and obligations to his heirs:

Condominium, Cebu City8,000,000Appliances, Talisay City, Cebu 300,000Residential House and Lot, Talisay City, Cebu2,000,000Jewelry-used by Mr. Talib 200,000Patent-Philippines 300,000Patent-Korea 400,000BMW Car-Japan1,000,000Cost of burial 50,000Cost of tombstone, including upkeep of 5,000 20,000Cost of coffin 80,000Judicial expenses 30,000Extrajudicial expenses 10,000Hospital Bills 600,000

Compute the net taxable estate.a. 10,055,000c. 8,155,000b. 9,155,000d. 9,100,000

2. Shares of stock of PLDT Corp, kept in safe in Korea100,000Shares of Coca-cola Company with business situs in Philippines 50,000Shares of stock of Pepsi Corp with 85% of business located in Japan200,000

How much will be included in the gross estate if the decedent is a non-resident alien without reciprocity?a. 350,000c. 250,000b. 150,000d. 300,000

3. Mr. Pats died leaving real property with the following valuations:Fair value of property at time of death1,200,000Zonal Value1,300,000Adjacent price of property1,500,000

How much is to be included in the gross estate of Mr. Pats?a. 1,200,000c. 1,500,000b. 1,300,000d. neither of the choices

4. Assuming a decedent has Php 1,000,000, how will this be distributed to his/her heirs and assume further that the decedent died with a will?Legitimate sonSurviving SpouseParentsFree Portiona. 500,000500,00000b. 500,000250,000250,0000c. 500,000250,0000 250,000d. 250,000250,000250,000 250,000

5. Mr. Taxikad, a non-resident citizen, died with the following property and data:Net estate, Philippines1,000,000Net estate, Korea600,000Net estate, Japan400,000Estate tax paid to Korea25,000Estate tax paid to Japan15,000

Compute for the tax credit for foreign estate taxes paid.a. 27,000b. 26,500c. 27,500d. 26,000

6. Mr. Han, a Japanese residing in Tokyo, Japan, died leaving the following properties:Property located in the Philippines 500,000Property located in Japan1,000,000 His administrator in the Philippines claimed the following deductions:Cremation expenses10,000Cost of urn 5,000Judicial expenses20,000Indebtedness incurred in the Philippines85,000 How much is the net taxable estate?a. 460,000b. 380,000c. 1,380,000d. 1,460,000

7. Mr. Bruce Bishop, a citizen and resident of New South Wales, Australia, died leaving properties and obligations in Australia and in the Philippines.Properties in Australia (including family home of 1,000,000)3,000,000Properties in the Philippines1,000,000Funeral expenses in Australia 250,000Unpaid obligations in Australia 700,000Medical expenses in the Philippines 200,000How much is the net taxable estate in the Philippines?a. 1,000,000b. 800,000c. 775,000d. 0

8. Mr. Bueno, a married Filipino citizen, died in a car accident. He left his wife with their residential house with a fair value of 1,000,000. The lot on which it stands, having a fair value of 400,000, is Mr. Buenos exclusive property.How much is the allowable deduction for family home?a. 1,400,000b. 1,000,000c. 900,000d. 700,000

9. Mr. Solomon, a non-resident citizen, died on June 1, 2009 on a plane crash. He left his wife the following properties and charges thereon. The property relationship in the marriage was the conjugal partnership of gains.Family home:Residential house, constructed during marriage900,000Residential lot, inherited before marriage450,000Household furniture and appliances490,000Receivable from an insolvent friend 10,000Cash, owned before marriage150,000Other properties owned before marriage 1,000,000Medical expenses120,000Funeral expenses100,000Judicial expenses120,000Unpaid mortgage 50,000Unpaid taxes 20,000Legacy to Brgy. Ermita, Cebu City 50,000Loss of household furniture and applianceson December 24, 2009 due to robbery 12,000How much is the net taxable estate?a. 200,000b. 830,000c. 630,000d. 80,000

10. Mr. Hanes, a non-resident alien, died with the following information:Gross EstateDeductionsEstate Tax PaidPhilippines2,000,000400,000London5,000,000600,00050,000 How much is the estate tax due after tax credit?a. 103,000b. 27,467c. 53,000d. 29,429

11 12. The following were donations all on one date:

Real Property in the PhilippinesP 15,000,000Real Property in KazakhstanP 28,000,000Tangible Personal Property in the PhilippinesP 5,000,000 Intangible Property in RussiaP 1,850,000Intangible Personal Property in MaldivesP 600,000Intangible Personal Property in EnglandP 450,000Intangible Personal Property in ManilaP 800,000Intangible Personal Property in DavaoP 150,000

11. Calculate the Gross Gifts, if the donor is a citizen or a resident of the Philippines?

a. P 51,650,000b. P 51,850,000c. P 51,930,000d. P 51,800,000

12. Calculate the Gross Gifts, if the donor is neither a citizen nor a resident of the Philippines?

a. P 20,950,000b. P 20,800,000c. P 20,900,000d. P 20,850,000

13 14. Don Estephanio de la Victoria y Maglasang donated the following during 2011:

DateDescriptionMarket ValueJan. 10House and Lot to Sunshine, his legallyadopted daughter, on account of her marriageP 25,965,000

Mar. 15Lamborghini to Christine June, his legallyAdopted daughter on account of her debutP 22,050,000

Apr. 30Cash to Ms. Aloyon, his secretary, on accountof her birthday. On condition that P 80,000shall be given to charity.P 250,000

May 10Vintage and antique items to Don Fausto, his uncleon account of gratitudeP 1,780,000

13. What is Don Estephanio de la Victoria Y Maglasangs donors tax due on his donation on May 10, 2011?a. 297,250b. 204,750c. 267,000d. 265,000

14. What the donors tax due on his gifts to strangers?a. 75,000b. 4,000c. 10,000d. 51,000

15. Mr. and Mrs. Allan and Charisse Paran made donations out of their conjugal properties to the following:

Date DoneeProperty Fair MarketDonatedValue

Feb. 14To Berna, daughter and Mario, herBeach Estategroom on their marriage last Jan. 30in PalawanP 13,115,000

Apr. 10To Phil. National Red Cross (PNRC)CashP 285,000

Apr. 11To the Province of SamarCashP 3,157,000

May 13To Rojie, Mrs. Parans brother as gift Condo unitfor Rojies birthdayP 1,950,000

Jun. 10To Mayor Benculado as gift for hisCashP 99,000Wedding Anniversary

Sept. 15To Andrea Loraine, Mr. Parans sister,Cashfor topping the Bar Examinations,P 45,950provided that P 5,850 must be donated to charity

What is the donors tax payable by Mrs. Charisse Paran on her latest donation to strangers?a. 6,892.50b. 6,015c. 12,030d. 13,785

16 - 17. Mr. Grey donated the following items to his friends because it was his birthday. Receivable from a friend in Australia 90, 000Receivable from a neigbhor in Cebu 60, 000Jordan shoes in USA 20, 000Truck in Lilo-an 500, 000Alta vista house and lot in Pardo5,000, 000Land in Nevada6,000, 000

16. How much is gross gift if Mr. Grey is a citizen?a. 11,670,000b. 5,560,000c. 5,500,000d. 6,120,000

17. How much is gross gift if Mr. Grey is a non-resident alien?a. 11,670,000b. 5,560,000c. 5,500,000d. 6,120,000

18 19. Mr Blues sons are getting married. He donated the following for his sons to start their own lives with their own families.

Cash in bank - Davao40, 000To eldest sonCash in bank - Lapu-lapu20, 000To houseboy considered as sonCash in bank - Cebu 8,000To adopted sonTo Sto. Nino church for presiding the wedding 300, 000

18. How much is deductions from gross gift if Mr. Blue is a citizen?a. 338,000b. 368,000c. 318,000d. 300,000

19. How much is deductions from gross gift if Mr. Blue is a non-resident alien?a. 338,000b. 368,000c. 318,000d. 300,000

20. Mr. Green donated the following to his 3rd degree cousin.Land in China -200, 000Car in Philippines-150, 000Land in Cebu with mortgage of 80, 000 -100, 000Chinese donors -60, 000 Compute for the tax still due if Mr Green is a citizen of Philippines.a. 57,081b. 36,000c. 6,800d. 0

21. Mr. Abella, a seller of merchandise, had the following transactions of goods, inclusive of VAT, during the third month of his business:Sales on account P 336,000Goods out on consignment January 10 112,000 February 15 224,000 March 10 168,000With the given information above, what is the output tax?a. 100,800c. 54,000b. 90,000d. 48,000

22. Mrs. Villaver Company, a first-time VAT-registered person, engages in the sale of goods. The following data are present as of January:Beginning inventory (inclusive of VAT)P 477, 120Actual VAT paid on the inventory 26, 000Purchases (inclusive of VAT) 95, 200Among the beginning inventory in January, 20% of the total inventories were purchased from a non-VAT registered seller.How much is the input tax creditable to the output tax of Mrs. Villaver Company?a. 68, 678.40c. 36, 200.00b. 10, 200.00d. 15, 600.00

23. Antonio Company is engaged in manufacturing of noodles. The information below pertains to transactions happened in the month of January 2014:Purchases during the month wheat and starches from farmersP 896, 000Purchases from VAT suppliersPacking materials 96, 320Supplies 69, 440Sales 618, 240In the given information, what is the value-added tax payable for the month of January?a. 66, 240c. 12, 640b. 53, 600d. 0

24. Way Ayu Corporation has the following sales during the month:Sales subject to 12%VAT P 112, 000.00Sales subject to 0%VAT 100,000.00Sales of VAT-exempt goods 100,000.00Total sales for the month P 400, 000.00 The following input taxes were passed on by its VAT suppliers:Input taxes on taxable goods (12%)Php12,000.00Input tax on zero-rated sales3,000.00Input tax on sale of exempt goods2,000.00 Compute the total input tax creditable against output tax for the montha. 17, 000c. 10, 000b. 15, 000d. 12, 000

25. Balansag Company, engaged in the sale of variety of goods, has the following purchases for the month of first quarter of 2014:Purchases (for his Sari-sari store):Fresh eggs P 150, 000Dried fish 300, 000Sacks of Rice 600, 000Refined Sugar 616, 000Junk Foods 16, 800Softdrinks 392, 000Sales 85% of each product was sold and for each product the selling price was based on 20% mark-up on cost.How much is the total input tax?a. 109, 800c. 190, 400b. 248, 976d. 230, 780

26. Stephenatics Realties is into selling and leasing of real estate properties. The transactions during the year 2014 include (all amounts are exclusive of taxes):UNITSUNIT COSTSALE:Commercial Space101,199,500Residential Lot131,919,500Residential House and Lot1510,000,000Condo Units204,000,000Low Cost Housing101,200,000

UNITSMONTHLY RENTALLEASE:Commercial Space1213,000Residential House and Lot1115,000Condo Units1012,800

How much is the output VAT of Stephenatics Realties for 2014?a. 29,277,000c. 29,461,320b. 29,039,400d. 32,271,420

27 - 29. Mr. A, a VAT registered person purchased capital goods, considered as depreciable assets to be used in the production of goods from Mr. B.

Acquisition CostUseful Life (Invoice Price)Building 2,149,840 96 monthsMachinery 2,004 800 36 monthsEquipment 1,064,000 60 months

27. How much is the output tax? a. 626,237 c. 445,140 b. 559,140 d. cannot be determined

28. Compute for the input tax based on the foregoing transaction. a. 626,237 c. 445,140 b. 559,140 d. some other answer

29. The monthly amortization of tax input is a. 10,226 c. 9,806 b. 11,706 d. some other answer

30 32. Tawantawan Corporation sold a parcel of land with the following data: Consideration stated 3,136,000 Zonal Value 2,500,000 Appraisal Value 3,000,000 Mortgage assumed by the buyer 400,000 Cost to seller 380,000 Cash Payments: Down Payment 1,136,000 Installment Due (for the next 5 years) 320,000 Creditable Input Tax (current year) 120,000 30. Compute for the output tax of Tawantawan Corporation. a. 360,000 c. 164,571 b. 336,000 d. some other answer31. Amortization of Output VAT a. 176,327 c. 0 b. 164,571 d. some other answer

32. VAT Liability for the first year (current year) a. 240,000c. 44,571 b. 216,000d. some other answer

33. Mr. Tristan imported a car from London for his personal use. Total landed cost is 800,000 including customs duties of 75,000. How much is the VAT payable? a. 87,000b. 96,000c. 10,000d. 0

34. Mercado Construction Corporation, a VAT registered general construction company imports construction equipments from Japan.Invoice cost, Japan ($1 : P44)$7,500Value per Bureau of CustomsP340,000Customs duties35,000Freight and insurance17,000Assuming the customs duties were based on the quantity of the goods imported, the VAT due on the importation isa. P46,660b. P52,260c. P45,840d. P46,050

35. A VAT registered auto repair shop had the following data during the period:Receipts:From auto repair85,620From washing and greasing45,425Reimbursement by customer on payments made to VAT machine shops4,350Payments received for lubricants, oils andfluid provided by the shop to cars undergoing repairs5,780Disbursements:Electric bill3,550Water bill2,380Salaries of employees 15,000Payments made to machine shops, non-VAT4,350Purchase of lubricants, oils and fluids3,000How much is the output tax?a. 16,419b. 12,753c. 16,941d. 14,660

36. Mea Man operates (2) passenger jeepneys, (3) taxi cabs, and (5) cargo trucks. During December, the gross receipts are as follows: From passenger jeepneys:Jeepney No. 1 P25,000Jeepney No. 2 35,000P 60,000From taxi cabs:Taxi No. 1 34,000Taxi No. 2 33,000Taxi no. 3 33,000 100,000From transport of cargoTruck No. 1 300,000Truck No. 2420,000Truck No. 3330,000Truck No. 4360,000Truck No. 5390,0001,800,000From rental of its cargo trucks to individual lessees 230,000During the month, one of the taxi cabs was bumped by another taxi cab owned by Ingit Tera and paid Mea Man P15,000 for the damage done.The percentage tax due on Mea Man is _________.a . 4,800 c. 1,350b. 10,950 d. 2,700

37. Fresh Water Company is a holder of a franchise to engage in the business of supplying water to several towns and cities in Cebu. As recorded in its books during November, its total gross receipts from the sale of water amounted to P 3,050,000, while the receipts from the rental of its equipment wa P 300,000 and its other services was P 50,000. The operating expenses amounted to P 2,010,000; 10% of which was paid to VAT registered persons.What is its percentage tax due?a. 61,000c. 24,820b. 7,200d. 91,500

38. Jumega Ambisyosa operates the Impossible Dream Coliseum. During February, it has the following gross receipts from the various activities:Valentine concert by Annie CortesP 1,500,000PBA championship game 1,600,000UAAP basketball game 100,000Billiard 300,000Boxing exhibitions 2,300,000 What is the percentage tax payable by Jumega Ambisyosa on the coliseum?a. 240,000 c. 485,000b. 390,000 d. 470,000

39. Madrama Insurance Company, a domestic corporation, had the following collections from insurance premiums during the month:Property insuranceP 3,000,000Health and accident insurance 2,840,000Life and disability insurance 2,100,000Car insurance 1,300,000Truck insurance 1,500,000 What is the percentage tax due?a. 537,000 c. 247,000b. 105,000d. 142,000

40. Madis Karte had the following transactions of shares of stock: Selling Price CostSales: Lala Corporation, traded 30,000 25,300 Mama Corp., traded 59,870 49,700 Nana Corp., not traded 123,820103,850 Papa Corp., traded 90,640 83,530Purchases: Sasa Corp., not traded 35,040 Tata Corp., not traded 43,675 Wawa Corp., traded 61,090What is the total percentage tax on the above transactions?a. 597.10c. 109.90b. 902.55d. 415.35

ANSWER KEY1. B

Gross Estate:Condo8,000,000Appliances 300,000RH and L2,000,000jewelry 200,000Patent-phils 300,000Patent-korea 40,000BMW-Japan1,000,000Gross Estate11,840,000

Deductions:Ordinary:Funeral ExpensesActual145,0005% of GE592,000Limit200,000 145,000Judicial Expenses 40,000Special:Standard1,000,000Family Home1,000,000Medical ExpensesActual600,000Limit500,000 500,000 Total Deductions2,685,000

Gross Estate11,840,000Less: Deductions 2,685,000Net Taxable Estate 9,155,000

2. B

Shares of stock of PLDT100,000Shares of stock of Coca-cola 50,000Inclusion in gross estate150,000

3. B

4. C to Primary heirs (Legitimate son/daughter and descendants) of share of children for surviving spouse 0 if there is/are primary heirs for parents, same share with surviving spouse Excess is for free portion for free disposal

5. C

Philippine estate tax:On 500,00015,000Excess 8%40,000Estate tax55,000

Allowable tax credit:Limit 1Korea(600,000/2,000,000 x 55,000)16,500Actual25,000Allowed16,500

Japan(400,000/2,000,000 x 55,000)11,000Actual12,00011,000Total Limit 127,500Limit 2(1,000,000/2,000,000 x 55,000)27,500Actual 37,000Allowed 27,500

Tax credit to be deducted (lower of Limit 1 and limit 2)27,500

6. AThe decedent is a non-resident alien. His gross estate includes only those located in the Philippines.Gross Estate500,000Less: Deductions:Funeral expenses15,000Judicial expenses20,000Indebtedness 85,000Total 120,000Limit: 500,000/1,500,000 x 120,000 40,000Net Taxable Estate460,000

7. CGross Estate, Philippines1,000,000Less: Deductions:Funeral expenses:Actual250,000Allowed200,000200,000Unpaid obligations700,000Total900,000Limit: 1,000,000/4,000,000 x 900,000 225,000Net Taxable Estate 775,000A non-resident alien decedent has no deduction for standard deduction, medical expenses and family home.

8. CFamily Home:Exclusive lot400,000Conjugal home (1,000,000/2)500,000Total900,000

9. DExclusiveConjugal TotalGross Estate:Family home:House 900,000Lot 450,000Household furniture and appliances 490,000Claim against insolvent person 10,000Cash 150,000Other properties1,000,000 ________ Total1,600,0001,400,000Ordinary Deductions:Funeral expenses 100,000Judicial expenses 120,000Unpaid mortgage 50,000Unpaid taxes 20,000Legacy 50,000Claim against insolvent person________ 10,000Total 50,000 300,000Net Estate1,550,0001,100,000 2,650,000Special Deductions:Standard deduction 1,000,000Medical expenses 120,000Family homeExclusive450,000Conjugal (900,000/2)450,000 900,000Net Estate 630,000Less: Net Share of Surviving Spouse(1,100,000/2) 550,000Net Taxable Estate 80,000

10. AGross Estate, Philippines2,000,000Less: Deductions 400,000Net Estate1,600,000Estate Tax on 500,000 15,000 on excess ( 1,100,000 x 8%) 88,000Estate Tax Due103,000A non-resident alien is not entitled to tax credit.

11. B

12. ACitizen or Non-resident,ResidentNot citizen

Real Property in the PhilippinesP 15,000,000P 15,000,000Real Property in KazakhstanP 28,000,000Tangible Personal Property in the PhilippinesP 5,000,000 P 5,000,000Intangible Property in RussiaP 1,850,000Intangible Personal Property in MaldivesP 600,000Intangible Personal Property in EnglandP 450,000Intangible Personal Property in ManilaP 800,000P 800,000Intangible Personal Property in DavaoP 150,000P 150,000Gross GiftsP 51,850,000P 20,950,000

13. C

14. D

Non-Strangers:May 10Gross Gift:Vintage and antique itemsP 1,780,000Less: Deductions 0Net Taxable Gift 1,780,000Add: Prior Net Gifts Jan. 10 House & LotP 25,965,000Less: Deductions-dowry 10,000 25,955,000 Mar. 15Lamborghini P 22,050,000Less: Deductions 0 22,050,000Aggregate Net GiftsP 49,785,000

Donors tax on P 10,000,000P 1,004,000Tax on excess (49,785,000-10,000,000) x 15% 5,967,750Donors Tax on Aggregate Net Gifts 6,971,750Less: Donors Tax on all Prior Net gifts 6,704,750Donors Tax on Current giftP 267,000

Strangers:Apr. 10Gross Gift: Cash to his secretary, a strangerP 250,000Less: Deduction- diminution by the donor 80,000Net Taxable Gift 170,000Multiply by donors tax rate applicable for strangers 30%Donors tax dueP 51,000

15. BGross Gift (45,950/2)P 22,975Less: Exemption (5,850/2) 2,925Net Gift 20,050Multiply by DT rate to Strangers 30%Donors Tax dueP 6,015

16. A

17. BCitizen Non resident alienLand-Nevada 600, 000H&L- Pardo 5,000, 0005,000, 000Truck-Lilo-an500, 000 500, 000Jordan shoes-USA 20,000Receivable-neighbor 60, 000 60, 000Receivable-friend in Australia 90, 000 ________ Gross gift 11,670,000 5,560, 000

18. C

19. DDeductions from gross giftCitizenNon- resident alien Cash in bank-Davao-10, 000Eldest sonCash in bank Cebu- 8,000Adopted sonTo sto. Nino church-300, 000-300, 000CashDeductions from gross gift318, 000300, 000

20. ALand in China-200, 000Car in Philippines-150, 000Land in Cebu-100, 000Mortgage payable-land Cebu-80, 000Gross gift-320, 000Donors tax rate- stranger -x 30%Donors tax-96, 000Less: Tax credit -38, 919 Actual paid 60, 000150, 000370, 000 X 96, 000 = 38, 919Donors tax still due-57, 081

21. D

22. C

23. COutput tax (618, 240 x .12/1.12)P 66, 240Less: Input taxes:Presumptive input tax (896, 000 x .04)35, 840Purchase on packing materials (96, 320 x .12/1.12)10, 320 Supplies(69, 440 x .12/1.12) 7, 440 53, 600Value-added tax payable P 12, 640

24. BInput taxes on taxable goods (12%)P 12, 000Add: Input tax on zero-rated sales 3, 000Total Input Tax 15, 000Input tax from a purchase of goods in a zero-rated transaction is allowed to credit such input tax against the output tax of the company. But, in an exempt transaction, input tax is not allowed to be credited against the output tax.

25. APurchasesRefined Sugar (616, 000 x .12/1.12)66, 000Junk Foods (16, 800 x .12/1.12) 1, 800Softdrinks (392, 000 x .12/1.12)42, 000Total Input Tax P109, 800

26. A

27. DCannot be determined since it was not stated how much was the sales for the period.

28. BInput VAT: Building 2,149,840/1.12x12% = 230,340 Machinery 2,004,800/1.12x12% = 214,800 Equipment 1,064,000/1.12x12% = 114,000 Total 559,14029. CMonthly Amortization: Building 230,340/60 = 3,839 Machinery 214,800/36 = 5,967 Equipment not amortized _____ Total 9,806

30. A Initial payments = 1,136,000+400,000+20,000-400,000 Consideration stated 3,136,000 = 36.86% (Deferred basis) Output Tax = 3,000,000x12% = 360,000

31. CNo amortization since it is on a deferred basis.

32. AVAT LiabilityOutput Tax360,000Less: Creditable Input Tax120,000VAT Liability240,000

33. BTotal landed cost800,000X 12%VAT payable 96,000

34. CInvoice cost (7,500 x 44)P330,000Add: Customs dutiesP35,000 Freight and insurance 17,000 52,000Landed cost 382,000X 12%VATP45,840

35. AReceipts from auto repair shop85,620Receipts from washing and greasing45,425Payment received for lubricants, etc. 5,780Total gross receipts136,825X 12%Output tax16,419

36. AReceipts from 2 passenger jeepneysP 60,000Receipts from 3 taxi cabs100,000Total receipts160,000Rate of taxx 3%Common carriers tax 4,800

37. AGross receipts- sale of waterP 3,050,000Rate of taxx 2%Franchise tax 61,000

38. DPBA championship gameP 1,600,000 x 15% = 240,000Boxing exhibitions 2,300,000 x 10% = 230,000Amusement tax 470,000

39. CHealth and accident insuranceP 2,840,000Life and disability insurance 2,100,000Total collections on life insurance 4,940,000Rate of taxx 5%Percentage tax 247,000

40. BMama Corp.P30,000Nana Corp. 59,870Papa Corp. 90,640Gross Selling Price180,510Rate of taxx 0.5%Percentage tax 902.55