“You “You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
ransfer ransfer and !usiness !usiness a"ation #ccountancy $ro%ram School of !usiness and &overnance #teneo de Davao niversity DEPARTMENTAL DEPARTMENTAL EXAMINATION EXA MINATION
(ame) *********************************************** Year + Section) ************ ******************* *******
General Instruction)
,rite your answers in the space provided below. (o erasures allowed. #ny alteration in the answers shall be invalidated and warrants a -point deduction. /.
0/.
1/.
2/.
0.
00.
10.
20.
3.
03.
13.
23.
1.
01.
11.
21.
-.
0-.
1-.
2-.
2.
02.
12.
22.
4.
04.
14.
24.
5.
05.
15.
25.
6.
06.
16.
26.
/7.
37.
-7.
47.
//.
3/.
-/.
4/.
/0.
30.
-0.
40.
/3.
33.
-3.
43.
/1.
31.
-1.
41.
/-.
3-.
--.
4-.
/2.
32.
-2.
42.
/4.
34.
-4.
44.
/5.
35.
-5.
45.
/6.
36.
-6.
46.
07.
17.
27.
57.
$ a % e / 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss I.
ESTATE TAX
99. /. ,hich of the followin% statements is:are true; a. !rothers and sisters can become heirs in the le%al succession b. #n oral will corroborated by witnesses is valid c. 9n the absence of a le%itimate os parents and survivin% spouse. d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 0. ,hich of the followin% is:are incorrect; a. @states and trusts are considered ta"able entities under the (ational 9nternal Aevenue ?ode. b. #n estate that is under Budicial administration is not ta"able c. #n administrator is appointed in the last will and testament by the decedent= whereas an e"ecutor is appointed by the court d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 3. he deductible e"penses of an estate may consist of) a. Deductible e"penses allowed to an individual ta"payer b. 9ncome distributed to the beneciaries c. !oth Ca and Cb d. (either Ca nor Cb 1. ,hich of the followin% is:are false; a. (o income is realiEed when the estate is
-.
2.
4.
5.
distributed to the le%al heirs b. #n estate is entitled to an e"emption of $hp -7=777 Bust like an individual ta"payer c. # duciary may be an e"ecutor= administrator= or trustee d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% ,hich of the followin% statement is:are true; a. Fe%itimate and ille%itimate children have eGual shares under the intestate distribution. b. 9n all cases= the survivin% spouse shall receive one half of the net distributable estate c. he presence of a le%itimate son precludes the ascendants from the share of the estate d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% Donation mortis causa transfer of property is e
$ a % e 0 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
c. $ar Kalue d. Jarket Kalue 6. ,hich of the followin% statements is:are false; a. Shares of stocks acGuired by a nonresident alien from a domestic corporation are ta"able in the $hilippines b. he amount received under Aep. #ct 16/4 is not ta"able= hence= it shall not be included as part of the %ross estate c. 9f there is reciprocity= all properties within of a nonresident alien are not subBect to $hilippine estate ta" d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% /7.,hich of the followin% statement is:are true; a. nder the conBu%al property re%ime= the properties belon%in% to each spouse before marria%e shall be treated as e"clusive properties= but the income derived therefrom durin% marria%e shall be conBu%al properties b. ,hen the desi%nation of a beneciary is ambi%uous= the presumption is that it is a revocable desi%nation c. # property that is subBect to a %eneral power of appointment is to be included as part of the %ross estate d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% //.Hne of the followin% items mark the si%nicant di
/0.he ta"able year of an estate or trust shall be) a. ?alendar Year b. Iiscal Year c. @ither Ca or Cb d. (either Ca or Cb /3.,hich of the followin% statements is:are true; a. #n estate must adopt the calendar year as its ta"able period b. 9n a revocable trust= the %rantor shall include the trust income in his personal income ta" return. c. #n employee>s trust which forms part of a pension plan of an employer for the benet of his employees is e"empt from income ta". d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% /1.,hich of the followin% items is:are false; a. Iuneral e"penses incurred after the interment are not deductible but could be claimed as claims a%ainst the estate b. Ludicial e"pense incurred within 2 months from the date of the death is allowed as deduction from the %ross estate c. ?laims a%ainst the estate are unpaid lawful obli%ations by the decedent which should be paid by the heir if the value of the estate is inadeGuate d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% /-.,hich of the followin% statements is:are true; a. (o deduction is allowed on the property which is not included in the decedent>s %ross estate
$ a % e 3 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
b. @"penses primarily incurred by an heir intended to establish his interest in the estate are deductible Budicial e"penses from the %ross estate. c. # vanishin% deduction is allowed for property received from donation if it is part of the %ross estate. d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% /2.he followin% ordinary deductions from the %ross estate actually reduce the value of the estate= e"cept a. Kanishin% Deduction b. Iuneral @"penses c. Ludicial @"penses d. ransfer for $ublic se /4.,hich of the followin% statements is:are false; a. ,here there is reciprocity= the intan%ible personal property in the $hilippines of a resident alien will be e"empt from estate ta" b. he shares of stock issued by a forei%n corporation are intan%ible personal property within if these shares have acGuired a business situs in the $hilippines c. ?ouples who %ot married on #u%ust 3= /655 are %overned by the #bsolute ?ommunity re%ime in the absence of any pre nuptial a%reement to the contrary. d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% /5.MS!#(D recently died and is survived by ,9I@ and # Cchild of M and , and ! Cle%itimate child of , from a former marria%e. ,hich of the followin% properties shall form part of the
%ross estate of MS!#(D under the ?onBu%al $roperty re%ime; a. Kehicle donated to ,9I@ by her %randfather when she was already married to MS!#(D b. #%ricultural land inherited by ,9I@ from previous husband c. Iruits or income derived from the a%ricultural land referred to in letter Cb d. (one of the fore%oin% /6.#ssume the same facts in no. /5= e"cept that the property relations of the spouses is %overned by the #bsolute ?ommunity re%ime. ,hich of the followin% properties shall form part of the %ross estate of MS!#(D; a. Kehicle donated to ,9I@ by her %randfather when she was already married to MS!#(D b. #%ricultural land inherited by ,9I@ from previous husband c. Iruits or income derived from the a%ricultural land referred to in letter Cb d. (one of the fore%oin% 07.,hich of the followin% properties constitutes the common property of the spouses M and , under the ?onBu%al re%ime; a. Fand inherited by M durin% marria%e b. Iruits of land in letter Ca c. Lewelry inherited by , durin% marria%e d. !uildin% donated to , before marria%e 0/. a"ation of the estate shall be %overned by the stature or law in force at the time of distribution of the estate to the heirs. Succession takes place upon determination of the respective share of the heirs in the estate of the decedent a. rue= rue b. rue= Ialse c. Ialse= rue d. Ialse= Ialse 00.,hich of the followin% statements is correct;
$ a % e 1 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
a. he power of ta"ation reaches even the citiEens abroad and their income earned from sources outside the $hilippines b. $riests and reli%ious institutions are e"empt from income and property ta"es c. Separation benets received by terminated employees resultin% from a deadlock in their collective bar%ainin% a%reement are e"empt from income ta" d. he value of the property received as a %ift= or under a will or testament or throu%h le%al succession is e"empt from ta"ation 999. 9K. V.
DONOR’S TAX
03.Ior donor>s ta" purposes= who amon% the followin% is:are stran%erCs to you a. he %randson of the dau%hter of your %randson b. he %randfather of the mother of your %randmother c. he brother of the father of your %randfather d. he %randson of the sister of your mother a. 9 and 99 b. 999 and 9K c. 999 only d. 9K only 01.#. he %ift is perfected from the moment the donor es ta" is a property ta" imposed on the property transferred by way of %ift inter vivos a. b. c. d.
rue= rue rue= Ialse Ialse= rue Ialse= Ialse
0-.he donation of a movable property may be made. a. Hrally b. 9n ,ritin% c. @ither # or ! d. (either # nor ! 02.he donation of an immovable property shall be made a. 9n ,ritin% b. 9n a public instrument c. @ither # or ! d. (either # nor ! 04.sin% the precedin% number= acceptance by the done may be made a. 9n the same deed of donation b. 9n a separate document c. @ither # or ! d. (either # nor ! 05.Determine which of the followin% %ifts %iven by a parent to his child is entitled to the $hp /7=777 e"emption; a. &ift %iven on account of the child>s /5th birthday b. &ift %iven on account of the child>s colle%e %raduation c. &ift %iven on account of the child>s successful recovery from cancer d. (one of the fore%oin% 06.Determine which of the followin% e"empt %ifts shall be included as part of the %ross %ifts in the donor>s ta" return) a. &ift %iven on account of a child>s marria%e b. &ift %iven to the %overnment c. &ift %iven to educational= reli%ious= cultural= or social welfare institutions d. #ll of the fore%oin% 37.N is a ?hinese national who is residin% in ?hina. Me donated his $hilippine shares of stock to his ?hinese friend= Y= who is residin% in the $hilippines. #ssume ?hinese ta" law imposes %ift ta" on real and personal properties donated by ?hinese citiEens= whether located in ?hina or elsewhere= but does not allow any ta" credit for %ift ta"es paid in forei%n countries. N paid %ift ta"es to both ?hinese and
$ a % e - 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
$hilippine %overnments. ,hich of the followin% statements is correct; a. N may claim a ta" credit for ?hina %ift ta" because he also paid $hilippine Donor>s ta" b. N may claim a ta" credit for the ?hina %ift ta" because of the burdensome es ta" return= as well as the donor>s ta" due thereon= shall be led and paid not later than) a. / month from the date of the %ift b. 37 days from the date of the %ift c. 3 months from the date of the %ift d. 67 days from the date of the %ift K99. 30.#. #s a rule= donation between husband and wife durin% the marria%e is void K999. !. Donation can be made to conceived or unborn children. a. rue= rue b. rue= Ialse c. Ialse= rue d. Ialse= Ialse 33.# %ift that is %iven to one of the followin% donees shall be subBect to the 37O %ift ta" rate) a. &randchild b. #unt c. Sisterinlaw d. !rother
31.# %ift %iven to one of the followin% donees shall be subBect to the %raduated donor>s ta" rates) a. (aturally adopted child b. #dulterous child c. Sisterinlaw d. ?hild of the /st cousin 3-.,hich of the followin% transactions is deemed a ta"able %ift; a. ?ondonation or remission of a debt b. Sale of a residential house and lot for less than an adeGuate and full consideration in money or money>s worth c. !oth Ca and Cb d. (either Ca nor Cb 9N. X.
BUSINESS TAXES
N9.
9dentication) 9dentify type of business ta"es followin% transactions subBect to. ?hoose from followin% items)
XII.
!OIES"
the the are the
a. SubBect to 7O K# b. SubBect to /0O K# c. @"empt from K# but SubBect to H$ d. @"empt from K# and not subBect to H$ e. @"empt from !usiness a" N999. 32.Sale or importation in their ori%inal state of a%ricultural and marine food products. 34.9mportation by a%ricultural cooperatives duly re%istered with ?D# of machinery and farm inputs used in their production. 35.9mportation of personal and household e
$ a % e 2 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
car%oes and %oods= %ross receipts e"ceedin% $hp /=6/6=-77. 13.@stablishments whose %ross sales or receipts do not e"ceed $hp /77=777 durin% any /0 month period. 11.!usiness whose annual %ross receipts or sales e"ceeds $hp /=6/6=-77 and who are not K# re%istered. 1-.@stablishments whose annual %ross sales do not e"ceed $hp /=6/6=-77 and who are not K# re%istered. 12.Mospital= medical and dental services= e"cept those rendered by professionals. 14.Aeceipts by educational institutions under Dep@d= ?M@D= and @SD# on educational activities. 15.Service rendered by professionals= such as doctors who are not K# re%isted and whose %ross sale did not e"ceed $hp /=6/6=-77. 16.# person whose sales do not e"ceed $hp /77=777. -7.Hperators of ni%htclubs and day clubs. -/.Services of lawyers duly re%istered with the 9!$ whose %ross receipts e"ceed $hp /=6/6=-77. -0.Services of doctors duly re%istered with the $A? whose %ross receipts e"ceed $hp /=6/6=-77. -3.Services of lawyers duly re%istered with the 9!$ whose %ross receipts do not e"ceed $hp /=6/6=-77 and are K# re%istered. -1.Services of doctors duly re%istered with the $A? whose %ross receipts do not e"ceed $hp /=6/6=-77 and are K# re%istered. --.Services of accountants duly re%istered with the $A? whose %ross receipts do not e"ceed $hp /=6/6=-77 and are K# re%istered. -2.Services of en%ineers duly re%istered with the $A? whose %ross receipts do not e"ceed
$hp /=6/6=-77 and are K# re%istered. -4.Services of accountants duly re%istered with the $A? whose %ross receipts $hp /=6/6=-77. -5.Services of en%ineers duly re%istered with the $A? whose %ross receipts $hp /=6/6=-77. -6.Services of doctors duly re%istered with the $A? employed by San Ji%uel ?orporation. 27.Services of accountants duly re%istered with the $A? employed with the ?ommission on #udit. N9K. XV.
VALUE ADDED TAX XVI.
2/.,here the input ta" e"ceed the ouput ta" at the end of any Guarter= the e"cess may be claimed as a) a. a" refund in the succeedin% Guarter or Guarters b. a" credit in the succeedin% Guarter or Guarters c. @ither Ca or Cb d. (either Ca nor Cb 20.he input ta" on the purchase or lease of %oods= properties or services related to a Eerorated transaction may be claimed as a) a. a" refund b. a" credit c. @ither Ca or Cb d. (either Ca nor Cb 23.he prescribed period for the ?ommissioner of 9nternal Aevenue C?9A to act or decide on the application for ta" credit on input ta" is) a. /57 days from submission of ta"payer>s supportin% documents b. /07 days from submission of ta"payer>s supportin% documents c. 67 days from submission of ta"payer>s supportin% documents d. 27 days from submission of ta"payer>s supportin% documents
$ a % e 4 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
21.# ta"payer whose application for ta" credit on input ta" has been denied by the ?ommissioner of 9nternal Aevenue may le a $etition for Aeview before the) a. ?ourt of a" #ppeals in Division b. ?ourt of a" #ppeals en banc c. ?ourt of #ppeals d. Ae%ional rial ?ourt 2-.,hat institution is reGuired to deduct and withhold a nal K# of -O on the purchase of %oods or services subBect to K#; a. (ational &overnment or any political subdivision b. &overnmentowned or P controlled corporations c. !oth Ca and Cb d. (either Ca nor Cb 22.,hich of the followin% statements is:are true; a. he K# shall be withheld where the purchases is a &H?? b. he K# return shall be led and the payment thereof shall be made within 0- days followin% the close of each ta"able Guarter. c. he K# invoice or receipt shall indicate the purchaser>s name= business style= address and ta"payer>s identication number where the sale amounts to $hp /=777 or more d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 24.,hich of the followin% statements is:are false; a. Hutput a" minus 9nput a" eGuals the K# payable b. #ny e"cess of the input ta" over the output ta" may be claimed as refund c. #ny input ta" that is attributable to Eerorated sales by K# re%istered person may be claimed
as a ta" credit from other internal revenue ta"es. d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 25.,hich of the followin% statements is:are false; a. ransitional 9nput K# of 0O of the be%innin% inventory of each year is allowed as ta" credit. b. he presumptive input K# is 1O of all purchases of %oods. c. he creditable input K# is increased by transitional input K# and presumptive input K#. d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 26.,hich of the followin% statements is:are true; a. he value of %oods subBected to K# can still be subBected to the same ta". b. he nonresident forei%n entity is reGuired to le or declare a K# return. c. ransitional input K# allows deduction of a hi%her amount of actual input K# d. # and ! e. ! and ? f. # and ? %. #ll of the fore%oin% h. (one of the fore%oin% 47.he presumptive input K# is not allowed on the primary raw materials used in the production of a. ?ookin% Hil b. Salt= soy= and su%ar c. Sardines and mackerel d. Jilk and packed instant noodle NK99. XVIII. PROBLEM
N9N.
(ormana= a Iilipino ?itiEen= was married to Lill. Hn their weddin% anniversary on 3/ December 07/7= (ormana
$ a % e 5 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
wanted to surprise her husband by brin%in% home an e"pensive ice cream cake and a brand new Aole" watch. Irom work= (ormana immediately went home and strode strai%ht into the bedroom to surprise her husband. !ut (ormana was the one surprised when she opened the bedroom door. NN.
here= (ormana saw their bedroom covered by lavenderscented candles and rose petals scattered on the Qoor. Hn the bed= there she saw her husband Lill= seemin%ly all tied up on bed wearin% his se"iest briefs and a lar%e 9D ta% which says “Mappy #nniversary Darlin%.” !ecause of her e"treme surprise for what she saw= (ormana>s blood pressure shot up and she fell on the %round unconscious. Since Lill was all tied up= he wasn>t able to do anythin% to his fallen spouse. Lill then screamed as loud as he can to %et help. #ll the nei%hbors then rushed into the house and was able to help (ormana and sent her to the hospital for treatment.
NN9.
Lill= on the other hand realiEed that her nei%hbors saw him all tied in bed in his se"y briefs with all the candles and rose petals. Lill su
NN99. NN999. Lill left properties)
the
followin%
/. $roperties inherited from Lill>s father who died on 07 Lanuary 0776) a. #%ricultural land $hp0=777=777 NN9K.
NNK. he a%ricultural land had a IJK of $/=277=777 at the time of Lill>s inheritance. he a%ricultural land was ori%inally acGuired by Lill>s father for $/=377=777. he estate ta" was duly paid. he a%ricultural was previously subBected to a mort%a%e of $277=777 at the time of its acGuisition. Lill was able to pay $177=777 before he died. NNK9. 0. $roperties inherited from Lill>s mother who died sometime on 0777= one week after his marria%e to (ormana) a. Iish pond P $hp 0=777=777 b. ?ommercial buildin% P $hp 0=777=777 NNK99. 3. $roperties acGuired throu%h Lill>s labor) a. Aesidential home Cfamily home P $hp /=777=777 b. ?ommercial land and buildin% P $hp -=777=777 c. Jotor vehicles $hp /=-77=777 d. Hthers P $hp -77=777 NNK999. NN9N. NNN. Lill>s estate claimed the followin% deductions) /. Iuneral @"penses $hp 0-7=777 0. Ludicial @"penses $hp /07=777 3. ?laims a%ainst insolvents Cincluded in others P $hp /57=777 1. Jedical @"penses for Lill>s hospitaliEation P $hp 377=777 NNN9. XXXII.
TRUE OR #ALSE
NNN999.,rite the word A@ if the statement is true. ,rite the word I#FS@ if the statement is false. NNN9K. 4/.he total %ross estate is $/1=777=777. 40.he total funeral e"penses is $077=777. 43.he total vanishin% deduction is $4-2=777. 41.he total ordinary deduction is $/=1-2=777 4-.he total estate after ordinary deduction is $1=460=777.
$ a % e 6 8 /7
“You know you're in love when you can't fall asleep because reality is nally better than your dreams.” ― Dr. Seuss
42.he total conBu%al estate after ordinary deduction is $4=-77=777. 44.he deductible family home is $/=777=777. 45.he share of the survivin% spouse is $3=4-7=777. 46.he net estate is $2=410=777. 57.he estate ta" is $4/0=577. NNNK. NNNK9. NNNK99. NNNK999. NNN9N.
NF.
here are no secrets to success. 9t is the result of preparation= hard work= and learnin% from failure. XLI.
$$$olin Po%ell
NF99. XLIII.
#IN
NF9K. NFK.
$ a % e /7 8 /7
