lOMoARcPSD|6075687
YeahYEAHYEAHYEAHYEAH
Business Administration (Xavier University - Ateneo de Cagayan)
Studocu is not sponsored or endorsed by any college or university
Downloaded by Mika Molina (
[email protected])
lOMoARcPSD|6075687
ReSA -The Review School of Accountancy Taxation
May 2022 Batch
TAX Quiz 1
COVERAGE - Week 1 to Week 4 Lecture
TAX - 101: Estate Tax
TAX - 201: Donor’s Tax
TAX - 301: Value-Added Tax
TAX - 401: Other Percentage Taxes
TAX - 501: Excise Taxes
1. A resident decedent left the following properties:
Real properties outside the Philippines P10,000,000
Personal properties including bank deposit, Philippines 15,000,000
Bank deposit (P1,000,000 was withdrawn from the account after the decedent
died) 3,000,000
The gross estate of the decedent was:
D a. P28,000,000 c. P26,000,000
b. P27,000,000 d. P24,000,000
Real properties outside the Philippines P10,000,000
Personal properties including bank deposit in the Philippines
(15,000,000 – 1,000,000) 14,000,000
Gross estate P24,000,000
2. Mr. Julian Cruz procured a life insurance upon his own life. He designated his estate’s executor as an irrevocable
beneficiary. For estate tax purposes, the proceeds of life insurance is:
A a. included in the gross estate of Mr. Julian Cruz because when the executor of the estate is a
beneficiary the proceeds are included in the gross estate regardless of the designation.
b. not included in the gross estate of Mr. Julian Cruz because the designation of the beneficiary
is irrevocable.
c. included in the gross estate of Mr. Julian Cruz because proceeds of life insurance are always
subject to estate tax.
d. not included in the gross estate because, as a rule, proceeds of life insurance are generally not
subject to estate tax.
3. How much is the allowable standard deduction for non-resident alien decedent?
C a. P5,000,000 c. P500,000
b. P1,000,000 d. Not allowed
4. A piece of land was included in the gross estate at a value of P2,000,000. Upon closer examination, you found
out that the value used was net of P500,000 unpaid mortgage on the same land. How much should have been
included and deducted from the gross estate?
Amount to be included Amount to be deducted
A a. P2,500,000 P500,000
b. P2,000,000 P500,000
c. P2,000,000 None
d. P1,500,000 None
5. (Phil. CPA Modified) Y, a Filipino resident, died on November 5, 2018, and his estate incurred losses:
First loss: from fire on February 2, 2018 of improvement on his property, not compensated by insurance;
Second loss: from flood on February 25, 2019 of household furniture compensated by insurance.
Third loss: from sale on February 20, 2018 of a property included in the gross estate.
Which of the above can be deductible for estate tax purposes?
D a. Only the first loss can be deductible c. Only the third loss can be deductible
b. Only the second loss can be deductible d. None of the losses can be deductible.
Page 1 of 6 pages
lOMoARcPSD|6075687
ReSA - The Review School of Accountancy TAX Quiz 1
Coverage: TAX – 101 to 501 (ReSA Batch 43 – May 2022 Batch)
6. All of the following are allowed as deductions from the gross estate of a non-resident alien, but are prorated
between Philippine gross estate and the total or world gross estate, except:
D a. unpaid mortgage. c. unpaid taxes.
b. claims against the estate. d. transfer for public purpose.
7 to 11 are based on the following: The decedent was a resident unmarried head of family died on January 6,
2022. The following data were provided from his estate:
Real and personal properties (including a piece of land valued
at P2,000,000 transferred inter vivos to his son,
perfected while transferor was still alive but not
delivered before he died) P14,000,000
Family home 30,000,000
The following items were claimed as deductions from the gross estate:
Funeral expenses P 100,000
Judicial expenses 200,000
Unpaid real estate tax 2,000,000
Loss of a personal property due to theft 1,000,000
Transfer for public use 500,000
Medical expenses 300,000
7. How much is to be reflected in line 34 of BIR Form No. 1801 (gross estate)?
C a. P46,000,000 c. P42,000,000
b. P44,000,000 d. P40,000,000
Real and personal properties (14,000,000 – 2,000,000) P12,000,000
Family home 30,000,000
Gross estate P42,000,000
8. How much is to be reflected in line 35 of BIR Form 1801 (the total ordinary deductions)?
B a. P3,800,000 c. P3,200,000
b. P3,500,000 d. P3,000,000
Unpaid real estate tax P2,000,000
Loss of a personal property due to theft 1,000,000
Transfer for public use 500,000
Total P3,500,000
9. How much is to be reflected in line 37D of BIR Form 1801 (the total special deductions)?
A a. P15,000,000 c. P2,000,000
b. P11,000,000 d. P1,500,000
Family home P10,000,000
Standard deduction 5,000,000
Total P15,000,000
10. How much is to be reflected in line 40 of BIR Form 1801 (net taxable estate)?
D a. P42,000,000. c. P27,500,000.
b. P32,000,000. d. P23,500,000.
34 Gross estate P42,000,000
35 Less: Ordinary deductions 3,500,000
36 Estate after ordinary deductions 38,500,000
37D Less: Total special deductions 15,000,000
40 Net taxable estate P23,500,000
Page 2 of 6 pages
lOMoARcPSD|6075687
ReSA - The Review School of Accountancy TAX Quiz 1
Coverage: TAX – 101 to 501 (ReSA Batch 43 – May 2022 Batch)
11. How much is to be reflected in line 16 of BIR Form No. 1800 (the donor’s tax), if any, on certain transfer
mentioned in the information given above?
B a. P120,000 c. P90,000
b. P105,000 d. None
36 Total net gifts P2,000,000
37 Less: Exempt gift 250,000
38 Total net gifts subject to tax 1,750,000
15 Applicable donor’s tax rate 6%
16 Total donor’s tax due P 105,000
12. Donor’s tax is not:
A a. a property tax. c. a direct tax.
b. a national tax. d. an excise tax.
13. Mr. Segundo Primero died. He was survived by his wife and two (2) children, Pedro and Juan. The wife
renounced her share in common property in favor of their two children. Was the renunciation subject to donor’s
tax?
A a. Yes, because what was renounced is her share in the conjugal partnership or absolute
community after the dissolution of the marriage in favor of the heirs of the deceased spouse or
any other person/s.
b. No, because the renunciation by the surviving spouse of his/her share in the conjugal
partnership or absolute community after the dissolution of the marriage was not done in favor
of a specified heir to the exclusion or disadvantage of the other co-heirs.
c. Yes, because the renunciation by the surviving spouse of his/her share in the conjugal
partnership or absolute community after the dissolution of the marriage was done in favor of
specified heirs.
d. No, because, as a rule, the surviving spouse cannot renounce her share in the conjugal
partnership or absolute community after the dissolution of the marriage.
14. First statement: The gross gifts of a donor who is a citizen or resident of the Philippines will include all
properties wherever situated.
Second statement: The gross gifts of a donor who is not a citizen, and not a resident of the Philippines will
include only properties situated in the Philippines.
A a. True, True c. True, False
b. False, False d. False, True
15. On March 12, 2020, Faith gave a piece of land to her best friend who is a graduate of Agricultural Engineering.
The land had a fair market value of P500,000 and had an unpaid realty tax of P10,000 which was assumed by the
donee.
How much was the donor’s tax due?
C a. P30,000 c. P14,400
b. P29,400 d. None
27 Total gifts in this return P500,000
33 Less: Total deductions 10,000
34 Total net gifts in this return 490,000
35 Add: Total prior net gifts during the calendar year -
36 Total net gifts 490,000
37 Less: Exempt gift 250,000
38 Total net gifts subject to tax 240,000
15 Applicable donor’s tax rate 6%
16 Total donor’s tax due P 14,400
Page 3 of 6 pages
lOMoARcPSD|6075687
ReSA - The Review School of Accountancy TAX Quiz 1
Coverage: TAX – 101 to 501 (ReSA Batch 43 – May 2022 Batch)
16. This refers to any person who is required to register under the provisions of the Tax Code but failed to register.
B a. VAT-registered person c. VAT-exempt person
b. VAT-registrable person d. None of the choices
17. A VAT-registered owner of a shoe store wants to replace the old display cabinets in the store. He decides to sell
them. He asks whether or not the sale of display cabinets used in his store is subject to VAT. What answer will
you give him?
B a. No, the sale of display cabinets used in the shoe store is not subject to VAT because it is not
considered his regular conduct or pursuit of commercial or economic activity.
b. Yes, the sale of display cabinets used in the shoe store is subject to VAT because it is
considered an incidental transaction to his regular conduct or pursuit of commercial or
economic activity.
c. No, the sale of display cabinets used in the shoe store is not subject to VAT because he is not
a dealer of display cabinets.
d. Yes, the sale of display cabinets used in the shoe store is subject to VAT because, as a rule,
such sale is always subject to VAT.
18. Sale of orchids and other ornamental plants is:
A a. subject to 12% VAT. c. exempt from VAT.
b. subject to 0% VAT. d. none of the choices
19. The sale of parking lot by a VAT-registered real estate dealer:
A a. shall be subject to VAT regardless of the amount of selling price.
b. shall be subject to VAT provided the amount of selling price exceeds the threshold amount.
c. shall be subject to VAT only when it is included as part of the sale of condominium unit.
d. shall be subject to VAT only when it is sold separately from the sale of condominium unit.
20. Lease of residential unit is exempt from VAT, regardless of the aggregate of such rentals of the lessor during the
year, if monthly rental per unit does not exceed:
C a. P10,000 c. P15,000
b. P12,800 d. P20,000
21. Mr. Juan Cruz, VAT-exempt, issued VAT invoice to Mr. S. Santos, VAT-registered trader. As a consequence:
A. Mr. Juan Cruz would be liable to percentage tax, VAT, and a surcharge of 50%.
B. Mr. S. Santos can claim input tax on his purchase provided the requisite information required under the
Regulations is shown on the invoice or receipt.
A a. Both A and B are correct c. Only A is correct
b. Both A and B are incorrect d. Only B is correct
22. First statement: Construction In Progress is not depreciated until the asset is placed in service.
Second statement: Normally, upon completion, a CIP item is reclassified and the reclassified asset is capitalized
and depreciated.
A a. Both statements are correct c. Only the first statement is correct
b. Neither statement is correct d. Only the second statement is correct
23. Sweet Tooth, Inc. manufactures refined sugar. The following selected data are taken from its books:
Sale of refined sugar, net of VAT P 2,000,000
Purchase of sugar cane from farmers 500,000
Purchases of packaging materials, gross of VAT 784,000
Purchase of labels, gross of VAT 112,000
Advance payment of VAT before release from refinery 60,000
How much is to be reflected under line 17D of BIR Form No. 2550M (the presumptive input tax), if any?
B a. P60,000 c. P10,000
b. P20,000 d. Not allowed
Purchase of sugar cane from farmers P500,000
Rate 4%
Presumptive input tax P 20,000
Page 4 of 6 pages
lOMoARcPSD|6075687
ReSA - The Review School of Accountancy TAX Quiz 1
Coverage: TAX – 101 to 501 (ReSA Batch 43 – May 2022 Batch)
24. Using the same data in the previous number, how much is to be reflected under line 21 of BIR Form No. 2550M
(total input taxes)?
B a. P176,000 c. P104,000
b. P116,000 d. P 96,000
Presumptive input tax P 20,000
Passed-on VAT on purchases of packaging materials, gross of VAT
(784,000 x 12/112) 84,000
Passed-on VAT on purchases of labels, gross of VAT (112,000 x 12/112) 12,000
Total input taxes P116,000
25. Using the same data in the previous number, how much is to be reflected in line 24 of BIR Form No. 2550M
(tax still payable) using 12% VAT rate?
C a. P124,000 c. P64,000
b. P 84,000 d. P20,000
12 Vatable sales (2,000,000 x 12%) 12B 240,000
21 Less: Total allowable input taxes 21 116,000
22 Net VAT Payable 22 124,000
23B Less: Advance payments for sugar and flour 23B 60,000
24 Tax still payable 24 64,000
26. A seller of goods is not VAT-registered. His annual gross sales amount to P3,000,000 (VAT threshold amount).
To what business tax is he liable?
A a. 1% tax on VAT-exempt persons starting July 1, 2020 and ending June 30, 2023
b. 12% value-added tax starting July 1, 2020 up to June 30, 2023
c. 3% common carrier’s tax starting July 1, 2023
d. Not subject to any percentage tax in any year
27. The following data were provided by an air carrier:
Freight and cargo fees (cargo originating from the Philippines in a continuous and
uninterrupted flight to Japan, passage documents sold in Japan) P5,000,000
Mail fees (mail originating from Japan in a continuous and uninterrupted flight to
the Philippines, passage documents sold in the Philippines) 4,000,000
Advance payments for cargo originating from the Philippines in a continuous and
uninterrupted flight to Singapore (passage documents sold in Singapore) 3,000,000
Receipts from sales of tickets to passengers originating from the Philippines in a
continuous and uninterrupted flight to Hongkong (tickets sold in the Philippines) 2,000,000
Expenses, Philippines 1,500,000
How much is the common carrier’s tax due from the air carrier assuming it is an international carrier doing
business in the Philippines?
C a. P420,000 c. P240,000
b. P300,000 d. P210,000
Freight and cargo fees (cargo originating from the Philippines in a continuous and
uninterrupted flight to Japan, passage documents sold in Japan) P5,000,000
Advance payments for cargo originating from the Philippines in a continuous and
uninterrupted flight to Singapore (passage documents sold in Singapore) 3,000,000
Gross receipts 8,000,000
Tax rate 3%
Common carrier’s tax P 240,000
Page 5 of 6 pages
lOMoARcPSD|6075687
ReSA - The Review School of Accountancy TAX Quiz 1
Coverage: TAX – 101 to 501 (ReSA Batch 43 – May 2022 Batch)
28. Chiko operates a cockpit. Inside the cockpit, he also operates a restaurant and has stalls for rent. Data for the
particular quarter follow:
Gross receipts (cockpit operation) P 500,000
Gross receipts (restaurant operation)
Sale of food 100,000
Sale of liquor 150,000
Gross rentals from stalls inside the cockpit 200,000
How much is the amusement tax due from Chiko?
A a. P171,000 c. P142,500
b. P151,650 d. P 90,000
Gross receipts (P500,000+P100,000+P150,000+P200,000) P 950,000
Tax rate 18%
Amusement tax P171,000
29. These are taxes on goods manufactured or produced in the Philippines for domestic sales or consumption
or for any other disposition and to things imported as well as services performed in the Philippine, which tax
shall be in addition to the value-added tax.
A a. Excise tax c. Documentary stamp tax
b. Percentage tax d. Local taxes
30. 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?
C a. P2,500.00 c. P2,232.14
b. P2,272,72 d. Not subject to excise tax
Gross receipts, net of VAT (50,000/1.12) P44,642.85
Tax rate 5%
Excise tax P 2,232.14
END
Page 6 of 6 pages
