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WorksheetsFINAL EXAMINATION - BUSINESS TAXATION
Total questions: 50
Worksheet time: 2hrs 40mins
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
1. POKMARU Inc. is a real estate dealer. Details of its sales during the year showed the following:
Date of sale June 2, 2018
Consideration in the deed of sale P 10,000,000
Fair market value in the assessment 9,600,000
Zonal value 10,400,000
Schedule of Payments:
June 2, 2022 2,000,000
June 2, 2023 3,000,000
June 2, 2024 3,000,000
How much is the output tax to be recognized for the June 2, 2024 payment?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
2. POKMARU Inc. is a real estate dealer. Details of its sales during the year showed the following:
Date of sale June 2, 2018
Consideration in the deed of sale P 10,000,000
Fair market value in the assessment 9,600,000
Zonal value 10,400,000
Schedule of Payments:
June 2, 2022 2,000,000
June 2, 2023 3,000,000
June 2, 2024 3,000,000
Assuming that the scheduled payment on June 2, 2022 is P 4,000,000, how much is the output tax to be recognized for the June 2, 2024 payments?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 3 and 4 are based on the following information:
3. ALICE GUO had the following data for the month of June 2024 (all amount is vat exclusive):
CASE 1 CASE 2
Sales 3,800,000 1,800,000
Purchase of Goods 1,260,000 1,600,000
Purchases of machines 1,440,000 900,000
Machine Life 6 years 3 years
The amount of vat payable (excess tax) shall be on CASE 1:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 3 and 4 are based on the following information:
4. ALICE GUO had the following data for the month of June 2024 (all amount is vat exclusive):
CASE 1 CASE 2
Sales 3,800,000 1,800,000
Purchase of Goods 1,260,000 1,600,000
Purchases of machines 1,440,000 900,000
Machine Life 6 years 3 years
The amount of vat payable (excess tax) shall be on CASE 2:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
5. SENRISA, VAT registered, made the following purchases during the month of January 2021:
Goods for sale, inclusive of VAT 246,400
Supplies, exclusive of VAT 20,000
Packaging materials, total invoice amount 56,000
Home appliance for residence, gross of VAT 17,920
Office machines (5 pcs), 8 years useful life, net of VAT 2,000,000
Repair of store amounted to P 20,000, no supporting official receipt. Creditable input taxes are:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
6. GuHuaPing, an owner of warehouse, which used to be vat exempt, because its annual receipts never exceeded the vat threshold, decided to register under the vat system on January 2 ,2024, The following data were from the 1st quarter ending March 31, 2024:
Rental from warehousing services, net of vat P 336,000
Purchases of supplies in February, gross of vat 112,000
Inventory of supplies, January 1, 2024 100,000
Vat on inventory of supplies, January 1, 2024 10,000
What is the VAT Payable for the quarter ending March 31,2024?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 7 and 8 are based on the following information:
YOKO NA is a VAT registered processor of sardines. The following data were provided for purposes of determining the taxpayer’s payable:
SALES (processed sardines, exclusive of vat) P800,000
PURCHASES/PAYMENTS:
Sardines purchased from fish dealers (invoice amount) 200,000
Tomatoes purchased from farmers 85,000
Purchased of olive oil (invoice amount) 67,200
Purchased of can containers (excl. of vat) 25,000
Payments for paper labels (excl. of vat) 12,000
Purchased of cardboard for boxes (incl. of vat) 8,960
Payments for hauling services from non-VAT registered 100,000
7. Determine the presumptive input VAT
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 7 and 8 are based on the following information:
YOKO NA is a VAT registered processor of sardines. The following data were provided for purposes of determining the taxpayer’s payable:
SALES (processed sardines, exclusive of vat) P800,000
PURCHASES/PAYMENTS:
Sardines purchased from fish dealers (invoice amount) 200,000
Tomatoes purchased from farmers 85,000
Purchased of olive oil (invoice amount) 67,200
Purchased of can containers (excl. of vat) 25,000
Payments for paper labels (excl. of vat) 12,000
Purchased of cardboard for boxes (incl. of vat) 8,960
Payments for hauling services from non-VAT registered 100,000
8. Determine the value added tax payable/excess input tax of YOKO NA
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 9 and 10 are based on the following information:
SEAHNXTYIR is a VAT registered processor of fruits. The following data were provided for purposes of determining the taxpayer’s VAT payable:
Sales (processed fruits, inclusive of VAT) P 672,000
Purchases/payments:
Purchased of fruits from farmers 200,000
Purchased of raw sugar from millers 60,000
Purchased of bottles (invoice amount) 22,400
Purchased of can containers (exc. of VAT) 50,000
Payments for paper labels (incl. of VAT) 5,600
Purchased of cardboard for boxes (incl. of VAT) 3,360
Payments for hauling services from VAT registered
Forwarders (exc. of VAT) 60,000
9. Determine the presumptive input VAT
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 9 and 10 are based on the following information:
SEAHNXTYIR is a VAT registered processor of fruits. The following data were provided for purposes of determining the taxpayer’s VAT payable:
Sales (processed fruits, inclusive of VAT) P 672,000
Purchases/payments:
Purchased of fruits from farmers 200,000
Purchased of raw sugar from millers 60,000
Purchased of bottles (invoice amount) 22,400
Purchased of can containers (exc. of VAT) 50,000
Payments for paper labels (incl. of VAT) 5,600
Purchased of cardboard for boxes (incl. of VAT) 3,360
Payments for hauling services from VAT registered
Forwarders (exc. of VAT) 60,000
10. Determine the value added tax payable/excess input tax of SEAHNXTYIR
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of residential units:
1. CASE A - MONTHLY RENTAL ₱ 14,000.00 - AGGREGATE ANNUAL RENTAL ₱ 3,200,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of residential units:
2. CASE B - MONTHLY RENTAL ₱ 16,000.00 - AGGREGATE ANNUAL RENTAL ₱ 2,800,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of residential units:
3. CASE C - MONTHLY RENTAL ₱ 15,000.00 - AGGREGATE ANNUAL RENTAL ₱ 3,100,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of residential units:
4. CASE D - MONTHLY RENTAL ₱ 18,000.00 - AGGREGATE ANNUAL RENTAL ₱ 3,200,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of commercial units:
5. CASE E - MONTHLY RENTAL ₱ 12,000.00 - AGGREGATE ANNUAL RENTAL ₱ 3,200,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of commercial units:
8. CASE H - MONTHLY RENTAL ₱ 10,000.00 - AGGREGATE ANNUAL RENTAL ₱ 3,500,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of commercial units:
6. CASE F - MONTHLY RENTAL ₱ 16,000.00 - AGGREGATE ANNUAL RENTAL ₱ 2,800,000.00
ANSWER???
(a)
II. IDENTIFICATION (8pts). Determine the applicable business tax. Is it EXEMPT, 3% OPT, or 12% VAT?
(PLEASE SEE THE PICTURE ATTACHED)
For 2024 taxable year, determine the applicable business tax of the following:
Lease of commercial units:
7. CASE G - MONTHLY RENTAL ₱ 16,000.00 - AGGREGATE ANNUAL RENTAL ₱ 2,980,000.00
ANSWER???
(a)
III. TRUE OR FALSE (10pts).
1. An individual whose gross sales or receipts do not exceed P100,000 is exempt from VAT provided he pays the 3% other percentage tax.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
2. A zero-VAT business is the same with VAT-exempt
TRUE
FALSE
III. TRUE OR FALSE (10pts).
3. Senior citizens are exempted from VAT and subject to 20% discount.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
4. On January 31, 2024, Company B, a non-VAT registered person issues a vatable invoice amounting to P20,000, thus not liable to VAT.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
5. On January 1, 2024, company A, a newly established business is expecting to generate a revenue for year 2024 amounting to P3,500,000, thus mandatorily liable to VAT.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
6. A tax payer whose annual gross receipts or sales exceed P3,000,000 shall pay VAT even if not VAT registered.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
7. A taxpayer whose annual receipts or sales do not exceed P3,000,000 but who is VAT registered shall pay VAT.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
8. Domestic airlines are exempt from VAT on their transport of passengers.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
9. All sales of agricultural or marine food products are subject to business tax.
TRUE
FALSE
III. TRUE OR FALSE (10pts).
10. Habitual engagement is normally manifested by registration as a dealer, service provider, or a practitioner of a profession.
TRUE
FALSE
IV. MULTIPLE CHOICE (22pts).
1. An importer of flowers from abroad:
Is liable to VAT, if it registers as a VAT person
Is exempt from VAT, because the goods are treated as agricultural products
Is exempt from VAT, provided that his total importation of flowers does not exceed P 3,000,000.
Is liable to VAT, despite the fact that it did not register as a VAT person and his total annual sales of flowers do not exceed P 3,000,000
IV. MULTIPLE CHOICE (22pts).
2. Which of the following transactions is exempt from VAT?
Medical services such as dental and veterinary services rendered by professionals.
Legal services
Services arising from employee-employer relationship
Services rendered by domestic air transport companies
IV. MULTIPLE CHOICE (22pts).
3. Seedlings of this tree are exempt from VAT on importation?
Rubber tree
Paper tree
Palm oil tree
Mahogany tree
IV. MULTIPLE CHOICE (22pts).
4. A business wants to make a P10,000 profit from the sale of an inventory costing P30,000. The business is subject to 3% percentage tax. At what amount shall the business invoice the sale?
NO SOLUTIONS, WRONG!!
P41,237
P41,200
P40,000
P38,800
IV. MULTIPLE CHOICE (22pts).
5. Mr. Brew is subject to 3% percentage tax. He made a total collection of P206,000 during the month and paid P103,000 in purchases. Compute his percentage tax.
NO SOLUTIONS, WRONG!!
P0
P3,000
P6,180
P12,000
IV. MULTIPLE CHOICE (22pts).
6. Which is not included in the landed cost?
Purchase price
All incident cost of bringing the goods to the customs warehouse
Taxes other than VAT paid prior to the withdrawal of the goods
Cost of transporting the goods from customs warehouse the importer's warehouse or residence
IV. MULTIPLE CHOICE (22pts).
7. Shakira Company had the following data regarding its importation:
Invoice price in US dollar $ 12,000
Other costs to bring goods to the Philippines P 145,000
BOC charges P 100,000
Customs duties is 10% of dutiable value
Peso-Dollar Exchange rate P 42.80:$1
Compute the VAT on importation.
NO SOLUTIONS, WRONG!!
P0
P81,643.20
P91,032.00
P98,935.20
IV. MULTIPLE CHOICE (22pts).
8. Which must be present to construe the existence of a business?
a. Regularity of transaction
b. Offering of services or goods to the public for a profit
c. Actual presence of profit during the period
d. Both A or B
IV. MULTIPLE CHOICE (22pts).
9. Atty. Saturday Sabado and Atty. Sunday Domingo formed a general professional partnership for the exercise of their legal profession. Their partnership Sabado-Domingo Law Office started operation on July 1, 2023 as a VAT taxpayer. The partnership adopted the calendar year basis.
The professional partnership shall file its first quarterly VAT return on?
July 30, 2023
October 25, 2023
August 25, 2023
August 30, 2023
IV. MULTIPLE CHOICE (22pts).
10. A marginal income earner shall pay
a. Neither C or D
b. Either C or D
c. 12% VAT
d. 3% percentage tax
IV. MULTIPLE CHOICE (22pts).
11. Marites Leasing Company leases residential houses with the following rentals for each unit per month:
10 units of Class A residence 20,000
20 units of Class B residence 15,000
50 units of Class C residence 10,000
Compute the exempt receipt of Marites Leasing Company in one month:
NO SOLUTIONS, WRONG!!
P0
P500,000
P800,000
P1,000,000
IV. MULTIPLE CHOICE (22pts).
12. Jesus Nazareno Dimaquiba, a non-VAT registered senior citizen and owner of St. Peter Drugstore, had the following sales during the first quarter of 2023:
(PLEASE SEE ATTACHED PICTURE)
Compute the exempt sales
NO SOLUTIONS, WRONG!!
P0
P120,000
P130,000
P220,000
IV. MULTIPLE CHOICE (22pts).
13. One of the following is subject to percentage tax
Monthly telephone bill from PLDT.
Telephone bill on a call by a mother in the Philippines to her son in the United States.
Telephone call by Magda in Hong Kong to her friend in Manila.
Long distance call by a son from Sta. Cruz, Manila to his father in lloilo City.
IV. MULTIPLE CHOICE (22pts).
14. Determine the business taxes of the following:
I. Leases of residential units with a monthly rental per unit not exceeding P 15,000 (regardless aggregate annual gross rentals)
II. Leases of residential units with a monthly rental per unit exceeding P 15,000 but the aggregate of such rentals of during the year do not exceed P 3,000,000
III. Lease of commercial units regardless of monthly rental per unit, but the aggregate value of such rentals during the year exceed P 3,000,000.
I = VAT; II = VAT; and III = VAT
I = None; II = OPT; and III = VAT
I = None; II = OPT; and III = OPT
I = None; II = VAT; and III = VAT
IV. MULTIPLE CHOICE (22pts).
Numbers 15 and 16 are based on the following information:
Radio Station SKL has annual gross receipts ranging from P 4,000,000 to
P 5,000,000. During the quarter, it had gross receipts from advertisements of
P 330,000, while the disbursements subject to VAT amounted to P 224,000, inclusive of tax.
15. The franchise tax payable by DYKKL is –
NO SOLUTIONS, WRONG!!
P50,000
P10,000
P9,900
P30,000
IV. MULTIPLE CHOICE (22pts).
Numbers 15 and 16 are based on the following information:
Radio Station SKL has annual gross receipts ranging from P 4,000,000 to
P 5,000,000. During the quarter, it had gross receipts from advertisements of
P 330,000, while the disbursements subject to VAT amounted to P 224,000, inclusive of tax.
16. How much is the VAT payable if it is registered under the VAT system?
NO SOLUTIONS, WRONG!!
P10,000
P15,600
P11,357
P9,900
IV. MULTIPLE CHOICE (22pts).
17. Lola Sot, a senior citizen went to Jollibee to treat his 4 grandchildren on account of his retirement. They consumed goods and beverages with gross amount of P1,120 inclusive of VAT. How much is amount to be paid by Lolo Sot?
NO SOLUTIONS, WRONG!!
P1,056
P896
P920
P1,100
IV. MULTIPLE CHOICE (22pts).
18. Lola Trining brought her granddaughter to Jollibee for a treat. Her granddaughter requested that they both order kiddie meals so that the latter will have two (2) new toys since each meal have a free one. The price of each meal is P 120, net of VAT. How much is the amount due from Lola Trining?
NO SOLUTIONS, WRONG!!
P192
P230.40
P268.80
P240
IV. MULTIPLE CHOICE (22pts).
Numbers 19 and 20 are based on the following information:
The ABC Corporation, a vat registered taxpayer sold to Lolo Sot, a senior citizen and to his wife, Ana, a person with disability, as follows:
(PLEASE SEE ATTACHED PICTURE)
19. The prices above are based on menu prices inclusive of VAT. The output tax due is
NO SOLUTIONS, WRONG!!
P0
P38.40
P48
P96
IV. MULTIPLE CHOICE (22pts).
Numbers 19 and 20 are based on the following information:
The ABC Corporation, a vat registered taxpayer sold to Lolo Sot, a senior citizen and to his wife, Ana, a person with disability, as follows:
(PLEASE SEE ATTACHED PICTURE)
20. The total amount to be paid by the spouses is:
NO SOLUTIONS, WRONG!!
P758.40
P800
P896
P640
IV. MULTIPLE CHOICE (22pts).
Numbers 21 and 22 are based on the following information:
Alpha Corporation (vat registered) has the following data for the month:
Sales – private entities and P 2,000,000 individuals
(10% to senior citizens), net of VAT 2,000,000
Sales – vat exempt goods 1,000,000
Sales – government, net of VAT 1,000,000
The following input taxes were passed-on by vat suppliers to Alpha Corporation during the month:
Input vat on goods sold to private entities and individuals P 120,000
Input vat on sale of exempt goods 20,000
Input vat on sale to government 100,000
21. The VAT due for the month is:
NO SOLUTIONS, WRONG!!
P108,000
P216,000
P96,000
P36,000
IV. MULTIPLE CHOICE (22pts).
Numbers 21 and 22 are based on the following information:
Alpha Corporation (vat registered) has the following data for the month:
Sales – private entities and P 2,000,000 individuals
(10% to senior citizens), net of VAT 2,000,000
Sales – vat exempt goods 1,000,000
Sales – government, net of VAT 1,000,000
The following input taxes were passed-on by vat suppliers to Alpha Corporation during the month:
Input vat on goods sold to private entities and individuals P 120,000
Input vat on sale of exempt goods 20,000
Input vat on sale to government 100,000
22. The amount of input vat not available for tax credit but may be recognized as cost or expense is:
NO SOLUTIONS, WRONG!!
P20,000
P62,000
P0
P50,000
