TEST 1 DONORS TAX THEORY

1.

21. C

41. A

61. D

2.

22. D

42. D

62. D

3.

23. C

43. C

63. C

4.

24. D

44. D

64. C

5.

25. A

45. A

65. B

6.

26. C

46. D

66. C

7.

27. D

47. C

67. C

8.

28. B

48. D

68. C

9.

29. C

49. C

69. C

10. C

30. D

50. C

70. C

11.

31. D

51. B

71. B

12.

32. D

52. A

72. D

13.

33. C

53. C

73. D

14.

34. C

54. D

74. C

15.

35. A

55. B

75. A

16.

36. B

56. C

76. C

17.

37. D

57. D

77. D

18.

38. C

58. C

78. A

19.

39. C

59. C

79. A

20.

40. B

60. B

80. D
81. D
82. C

32.

Answer: D

53

Capital property
Community property (500,000/2)
Gross gift
33
.

P100,000
250,000
350,000

Answer: C
Paraphernal property
Community property (500,000/2)
Gross gift

34
.
35
.
36
.

P300,000
250,000
550,000

Answer: C

Answer: A (see Solution in Question No. 5)

Answer: B
To Ara
Alice

120,000
75,00
0
250,00
0
200,00
0
125,00
0
770,000

Aiko
Assunta
Naga City
Gross gift
Less: Exemptions/Deductions
On Ara
Assunta (75,000 x 50%)
Naga City

10,000
37,500
125,000

Net gift
38

Answer:

172,50
0
597,50
0

Market value at the time of sale

P
450,000
250,000
200,000

Less: Selling price

Deemed gift
On P200,000
39
.

Answer:

40
.

Answer:

2,000

Gross gift
Less: Exemption

P 500,000
.

54

Net gift
Rate of tax (stranger)
Gift tax due
41
.

Answer:

500,000
30%
150,000

Gross gift
Less: Exemption
Net gift
Rate (stranger)
Gift tax
42
.

Answer:

P 700,000
_______
700,000
30%
210,000

Gross gift (brother)

Less: Exemption
Net gift

P 40,000
- .
40,000

On P40,000

Exempt

Jewelries
Rate of tax (stranger)
Gift tax
43
.

Answer:

P 25,000
30%
7,500

Market value
Less: Selling price
Deemed gift
Rate of tax
Gift tax due
44
.

Answer:

45
.

Answer:

P 250,000
100,000
150,000
30%
45,000

Donation to first cousin:

Gross gift

P200,00
0
.
200,00
0

Less: Exemptions
Net gift
Tax on P200,000

P 2,000

Donation to fiancee of first cousin:

Net gift

P
50,000
30%
15,00

Rate (stranger)
Gift tax

55

0
Tax on donation to first cousin
Tax on donation to fiancee

2,000
15,00
0
17,00
0

Donor's tax due

50
.

Answer:

Gross gift (P100,000 x 2)

P
200,000
_______
200,000

Less: Exemption
Net gift
On P200,000
51
.

Answer:

2,000

Gross gift

P
100,000
10,000
90,000
200,000
290,000

Less: Exemption
Net gift
Add: Net gift, August 15
Total net gifts
On P 200,000
90,000 x 4%
Gift tax due
Less: Tax paid, August 15
Gift tax due
52
.

P 2,000
3,600
5,600
2,000
3,600

Answer: A
Gross gift

P
185,000
.
185,000
30%
55,500

Less: Exemption
Net gift
Rate (stranger)
Gift tax
53
.

Answer:

Gross gift

P
170,000
_______
170,000

Less: Exemption
Net gift
On P 100,000
70,000 x 2%
54
.

Answer:

Exempt
P 1,400

Gross gift

P
30,000
.

Less: Exemption

56

Net gift
Add: Net gift, July 15
Total net gift

30,000
170,000
200,000

On P 200,000
Less: Tax paid, July 15
Gift tax due
55
.

P 2,000
1,400
600

Answer: B
Mr. Cruz
P 190,000
3
570,000
.
570,000

Mrs.
Cruz
P 190,000
3
570,000
.
570,000

P 14,000
4,200
18,200

P 14,000
4,200
18,200

P150,000
10,000
140,000
570,000
710,000

P150,000
10,000
140,000
570,000
710,000

Tax on P 500,000
210,000 x 6%
Tax on total
Less: Tax paid, July 16, 2008
Gift tax due

14,000
12,600
26,600
18,200
8,400

14,000
12,600
26,600
18,200
8,400

Total donor's tax due (8,400 + 8,400)

16,800

Value of property (380,000/2)

No. of donees
Gross gift
Less: Exemptions
Net gift
Tax on P 500,000
70,000 x 6%
Gift tax due
56
.

Answer:

57
.

Answer:

C (see the solution in No. 13

above)

Gross gift (P300,000/2)

Less: Exemptions
Net gift
Add; Net gift, July 16, 2008
Total

58
.

Answer: C
Amount of exemption allowed by law
Less: Exemption claimed on January 30
Allowed exemption on March 7

59
.

Answer: C

57

P 10,000
7,500
2,500

Gross gift
Less: Exemptions
Net gift
Add: Net gift, March 7 (25,000 - 2,500)
Total

P 80,000
.
80,000
22,500
102,500

Tax on P100,000
2,500 x 2%
60
.

Answer:

Exempt
P 50

Gross gift

P
100,000
.
100,000
49,000
149,000

Less: Exemption
Net gift
Add: Net gift, July 15 (P 50,000 1,000)
Total net gift
Tax on P 100,000
49,000 x 2%
61
.

Answer:

Exempt
P
980

To Suwail

P
125,000
200,000
125,000
150,000
600,000

City of Baguio
Sumakwel
Ysmael
Gross gift
Less: Exemptions
To Suwail

P
10,000
200,000

City of Baguio
Net gift
On P 200,000
190,000 x 4%
Gift tax
62
.

P 2,000
7,600
9,600

Answer: D
Gross gift

P150,00
0
10,00
0
140,00
0

Less: Exemptions
Net gift
Tax on P 100,000
40,000 x 2%
63
.

210,000
390,000

Exempt
P
800

Answer: C
Net gift

P
175,000
140,00

Add: Net gift, Jan. 5, 2008

58

0
315,00
0

Total net gifts

Tax on P 200,000
115,000 x 4%
Tax on total
Less: Tax paid, 1/6
Gift tax due
64
.

P 2,000
4,600
6,600
800
5,800

Answer: C
Gross conjugal (P500,000/2)

P250,00
0
10,00
0
240,00
0

Less: Exemptions
Net gift
Add: Prior net gifts
Net gift, Jan. 5

P140,00
0
175,00
0

April 6
Total
Tax on P500,000
55,000 x 6%
Tax on total
Less: Taxes previously paid
Jan. 5
800
April 6
5,800
Gift tax due
65
.

Answer:

315,00
0
555,00
0

P 14,000
3,300
17,300
P
6,600
10,700

Gross gift

P200,00
0
.
200,00
0
240,00
0
440,00
0

Less: Exemptions
Net gift
Add: Net gift, May 7 (250,000 10,000)
Total

Tax on P 200,000
240,000 x 4%
Tax on total
Less: Tax paid, May 7

P 2,000
9,600
11,600

59

P 200,000

P
2,000
1,600

40,000 x 4%
Gift tax due
66
.

Answer:

3,600
8,000

To Panganay (200,000/2) x

P
50,000
100,00
0
150,00
0

Bunso (200,000/2)
Gross gift
Less: Exemptions
To Panganay
Bunso

P10,000
10,000

20,00
0
130,00
0

Net gift
Tax on P100,000
30,000 x 2%

Exempt
P 600

To Panganays wife (200,000/2) x 1/2

Rate (stranger)
Gift tax

P 50,000
30%
15,000

Gift tax on Panganay and Bunso

Gift tax on Panganays wife
Donors (gift) tax payable

67
.

Answer:

68
.

Answer: C

600
15,000
15,600

C (see Solution in Question No. 9)

To Nevada

P
710,000
10,00
0
700,00
0

Less: Exemptions
Net gift
Tax on P 500,000
200,000 x 6%
Gift tax on Nevada

P14,000
12,000
26,000

To Navera

P
120,000
20,00
0
100,00
0
30%
30,00
0

Less: Deductions
Net gift
Rate of tax (stranger)
Gift tax on Navera

60

Tax on Nevada

P
26,000
30,00
0
56,00
0

Tax on Navera
Total
Less: Tax credit
U.S. tax paid
Limit (700/800 x 56,000)
Allowed (lower)

P15,000
49,000
15,00
0
41,00
0

Gift tax due after tax credit

69
.

Answer:

Gross gift

P150,00
0
.
150,00
0

Less: Exemptions
Net gift
Tax on P100,000
50,000 x 2%
70
.

Exempt
P 1,000

Answer: C
Cash gift (P 50,000 x 3)
Rate (strangers)
Gift tax

71
.

Answer:

P 150,000
30%
45,00
0

Gross gift

P
120,000
10,00
0
110,00
0

Less: Exemptions
Net gift
Tax on P 100,000
10,000 x 2%
72
.

Answer:

Exempt
P 200

Gross gift

P
60,000
10,000
50,000

Less: Exemption
Net gift
Tax on P50,000
73
.

Answer:

Exempt

61

Gross gift

P
60,000
10,000
50,000
50,000
100,000

Less: Exemption
Net gift
Add: Net gift, 1st quarter
Total net gift
Tax on P100,000
74
.

Answer:

Exempt

Gross gift

P
60,000
10,000
50,000

Less: Exemption
Net gift
Add: Prior net gifts
1st quarter
2nd quarter
Total net gift

P 50,000
50,000

Tax on P100,000
50,000 x 2%
75
.

Exempt
P 1,000

Answer: A
Net gift, Philippines

400,00
0
600,0
00
1,000,000

Net gift, Hongkong ($120,000 x 5)

Total net gift
Tax on P1,000,000
Less: Tax credit
Tax paid, Hongkong ($12,500 x 5)
P62,500
Limit (6/10 x 44,000)
26,400
Credit allowed (lower)
Gift tax due after tax credit
76
.

100,000
150,000

Answer:

P44,000

26,400
17,600

Net gift, Philippines

P200,00
0

Net gift, United States

Net gift, Japan
Total net gift

150,000
50,000

Tax on P200,000

2,00
0
8,00
0
10,00
0

200,000 x 4%
Gift tax
Less: Tax credit
Tax paid in U.S.
Limit (15/40 x 10,000)

4,000
3,750

62

200,000
400,000

Allowed (lower)

P
3,750
Tax paid in Japan
3,500
Limit (5/40 x 10,000)
1,250
Allowed (lower)
1,250
Total credits, 1st limitation
5,000
2nd limitation (20/40 x 10,000)
5,000
Allowed (lower)
Gift tax due after tax credit

63

5,00
0
5,00
0