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WorksheetsCup6 - TAX (Hard)
Total questions: 10
Worksheet time: 13mins
On March 1, 2017, Ms. Samira Aquino donated a piece of land to her best friend, Mar Roxas. She also donated to a non – profit religious organization. The donation to her friend was a piece of land which had an assessed value of P 1,000,000 and zonal value of P 800,000 at the time of donation. The donations to a non – profit religious organization were cash amounting to P 200,000 and an automobile with a purchase price of P700,000. The piece of land was encumbered with an unpaid mortgage of P 300,000 which was not assumed by the donee. In addition, the donee agreed to pay the applicable donor’s tax of P 210,000.
How much is the value of the gross gifts?
P 1,900,000
P 1,700,000
P 1,000,000
None of the choices
In the year 2018, Mr. Romy Tanada has the following transactions:
Gross receipts, trucking business P 3,800,000
Gross receipts, lease of residential units (monthly rental is
P 15,000 per unit) 3,500,000
Gross receipts, practice of accountancy 1,000,000
Sale of four (4) residential lots at P 1,500,000 each to
four (4) individual buyers 6,000,000
Sale of three 93) parking spaces at P 500,000 each 1,500,000
How much is the VAT – exempt gross receipts, assuming the taxpayer is VAT – registered?
P 9,500,000
P 3,500,000
P 1,000,000
None of the choices
The Anong Pizza NA, VAT – registered issued the following official receipts to a customer who was with a senior citizen:
Ordered by a senior citizen
Parma pizza P 880.00
Mango basil 80.00
P 1,060.00
Ordered by the non – senior citizen
House salad 420.00
Beef rendang 590.00
Avocado smoothie 190.00
1,200.00
Total sales (VAT inclusive) P 2,260.00
How much is the VAT – exempt sale?
P 2,017.85
P 1,060.00
P 946.43
None of the choices
On March 1, 2017, Ms. Samira Aquino donated a piece of land to her best friend, Mar Roxas. She also donated to a non – profit religious organization. The donation to her friend was a piece of land which had an assessed value of P 1,000,000 and zonal value of P 800,000 at the time of donation. The donations to a non – profit religious organization were cash amounting to P 200,000 and an automobile with a purchase price of P700,000. The piece of land was encumbered with an unpaid mortgage of P 300,000 which was not assumed by the donee. In addition, the donee agreed to pay the applicable donor’s tax of P 210,000. How much was the total deductions?
P 1,410,000
P 1,200,000
P 900,000
None of the choices
Transport of passengers P 1,500,000
Transport of goods and cargoes 1,500,000
Expenses, transport of passengers 300,000
Expenses, transport of goods and cargoes 500,000
A domestic common carrier has the following data on gross receipts and expenses for the first quarter of 2018:
How much is the business tax if it is a domestic common carrier by land?
P 90,000
P 45,000
P 37,350
None of the choices
Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was thought to be sufficient to drive many cigarette companies out of business, and was questioned in court by a cigarette company that would go out of business because it would not be able to pay the increased tax. The cigarette company is
Wrong because taxes are the lifeblood of the government.
Wrong because the law recognizes that the power to tax is the power to destroy.
Correct because no government can deprive a person of his livelihood.
Correct because the Congress, in this case, exceeded its power to tax.
XYZ Corporation manufactures glass panels and is almost at the point of insolvency. It has no more cash and all it has are unsold glass panels. It received an assessment from the BIR for deficiency income taxes. It wants to pay but due to lack of cash, it seeks permission to pay in kind with glass panels. Should the BIR grant the requested permission?
It should grant permission to make payment convenient to taxpayers.
It should not grant permission because a tax is generally a pecuniary burden.
It should grant permission; otherwise, XYZ Corporation would not be able to pay.
It should not grant permission because the government does not have the storage facilities for glass panels.
PRT Corporation purchased a residential house and lot with a swimming pool in an upscale subdivision and required the company president to stay there without paying rent; it reasoned out that the company president must maintain a certain image and be able to entertain guest at the house to promote the company's business. The company president declared that because they are childless, he and his wife would very well live in a smaller house. Was there a taxable fringe benefit?
There was no taxable fringe benefit since it was for the convenience of the employer and was necessary for its business.
There was a taxable fringe benefit since the stay at the house was for free.
There was a taxable fringe benefit because the company was very luxurious.
There was no taxable fringe benefit because the company president was only required to stay there and did not demand free housing.
Aleta sued Boboy for breach of promise to marry. Boboy lost the case and duly paid the court's award that included among others, Php 100,000 as moral damages for the mental anguish Aleta suffered. Did Aleta earn a taxable income?
She had a taxable income of Php 100,000 since income is from whatever source.
She had no taxable income because it was a donation.
She had taxable income since she made a profit.
She had no taxable income since moral damages are compensatory.
Which among the following taxpayers is required to use only the calendar year for tax purposes?
Partnership exclusively for the design of government infrastructure projects considered as practice of civil engineering.
Joint-stock company formed or the purpose of undertaking construction projects.
Business partnership engaged in energy operations under a service contract with the government.
Joint account engaged in trading of mineral ores.
