TEST – DONOR’S TAX THEORY C 21 C 41 A 61 D B 22 D 42 D 62 D C 23 C 43 C 63 C B 24 D 44 D 64 C A 25 A 45 A 65 B A 26 C 46 D 66 C A 27 D 47 C 67 C C 28 B 48 D 68 C D 29 C 49 C 69 C 10 C 30 D 50 C 70 C 11 B 31 D 51 B 71 B 12 A 32 D 52 A 72 D 13 A 33 C 53 C 73 D 14 B 34 C 54 D 74 C 15 A 35 A 55 B 75 A 16 D 36 B 56 C 76 C 17 A 37 D 57 D 77 D 18 B 38 C 58 C 78 A 19 D 39 C 59 C 79 A 20 B 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 75,00 250,00 200,00 125,00 770,000 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: 172,50 597,50 A Market value at the time of sale P 450,000 250,000 200,000 Less: Selling price Deemed gift On P200,000 39 Answer: C 40 Answer: B 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 A Gross gift Less: Exemption Net gift Rate (stranger) Gift tax 42 Answer: P 700,000 _ 700,000 30% 210,000 D 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 C Market value Less: Selling price Deemed gift Rate of tax Gift tax due 44 Answer: D 45 Answer: A P 250,000 100,000 150,000 30% 45,000 Donation to first cousin: Gross gift P200,00 200,00 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 Tax on donation to first cousin Tax on donation to fiancee 2,000 15,00 17,00 Donor's tax due 50 Answer: C Gross gift (P100,000 x 2) P 200,000 _ 200,000 Less: Exemption Net gift On P200,000 51 Answer: 2,000 B 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: C 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 D 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 190,000 570,000 570,000 Mrs Cruz P 190,000 570,000 570,000 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) D 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 59 Answer: C 57 P 10,000 7,500 2,500 Gross gift Less: Exemptions Net gift Add: Net gift, March (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 B 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 D 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 10,00 140,00 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 58 315,00 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 10,00 240,00 Less: Exemptions Net gift Add: Prior net gifts Net gift, Jan P140,00 175,00 April Total Tax on P500,000 55,000 x 6% Tax on total Less: Taxes previously paid Jan 800 April 5,800 Gift tax due 65 Answer: 315,00 555,00 P 14,000 3,300 17,300 P 6,600 10,700 B Gross gift P200,00 200,00 240,00 440,00 Less: Exemptions Net gift Add: Net gift, May (250,000 10,000) Total Tax on P 200,000 240,000 x 4% Tax on total Less: Tax paid, May 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 C To Panganay (200,000/2) x ½ P 50,000 100,00 150,00 Bunso (200,000/2) Gross gift Less: Exemptions To Panganay Bunso P10,000 10,000 20,00 130,00 Net gift Tax on P100,000 30,000 x 2% Exempt P 600 To Panganay’s 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 Panganay’s wife Donor’s (gift) tax payable P 67 Answer: 68 Answer: C 600 15,000 15,600 C (see Solution in Question No 9) To Nevada P 710,000 10,00 700,00 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 20,00 100,00 30% 30,00 Less: Deductions Net gift Rate of tax (stranger) Gift tax on Navera 60 Tax on Nevada Tax on Navera P 26,000 30,00 56,00 Total Less: Tax credit U.S tax paid Limit (700/800 x 56,000) Allowed (lower) P15,000 49,000 15,00 41,00 Gift tax due after tax credit 69 Answer: C Gross gift P150,00 150,00 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 B Gross gift P 120,000 10,00 110,00 Less: Exemptions Net gift Tax on P 100,000 10,000 x 2% 72 Answer: Exempt P 200 D Gross gift P 60,000 10,000 50,000 Less: Exemption Net gift Tax on P50,000 73 Answer: Exempt D Gross gift P 61 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 C 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 400,00 600,0 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 C Net gift, Philippines P200,00 Net gift, United States Net gift, Japan Total net gift 150,000 50,000 Tax on P200,000 2,00 8,00 10,00 200,000 x 4% Gift tax Less: Tax credit Tax paid in U.S Limit (15/40 x 10,000) Allowed (lower) 4,000 3,750 P 62 200,000 400,000 3,750 3,500 1,250 Allowed (lower) 1,250 Total credits, 1st limitation 5,000 2nd limitation (20/40 x 10,000) 5,000 Allowed (lower) Tax paid in Japan Limit (5/40 x 10,000) Gift tax due after tax credit 63 5,00 5,00 ... Answer: C (see the solution in No 13 above) D 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... 50,000 30% 15,000 Gift tax on Panganay and Bunso Gift tax on Panganay’s wife Donor’s (gift) tax payable P 67 Answer: 68 Answer: C 600 15,000 15,600 C (see Solution in Question No 9) To Nevada... 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 75,00 250,00 200,00 125,00 770,000 Aiko