Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

Comprehensive Examination - TAXATION

Acc 418: Accountancy Refresher with Comprehensive Examination
Second Semester, AY 2022 – 2023

Name: ________________________________ Score: _____________________

Section: ______________________________ Date: ______________________

General Directions:
1. Erasures should be avoided.
2. Answers must be complete and in correct spelling.
3. Unanswered questions will be marked wrong.

I. Multiple Choice
Directions: Read each test item carefully and select the response that best answers the
question or statement. Shade the circle that corresponds to the letter of your choice
on the provided answer sheet.

1. The President, through an Executive Order, exempted Chinese individuals operating Offshore
Gaming Sites from paying taxes. This order is:
a. Valid, since it was through an Executive Order
b. Void, since it did not come from the Legislature
c. Valid, since there is valid delegation of power to tax to the President
d. Void, since walang alam ang Presidente sa ganitong bagay

2. Which of the following is not a legal reason an individual may raise to avoid paying taxes?
a. That his right to due process was violated
b. Lack of territorial jurisdiction to tax
c. That he will derive no benefit from the tax
d. That the period to collect has already prescribed

3. Which of the following inherent powers cannot raise money for the government?
a. Taxation
b. Police Power
c. Eminent Domain
d. None of the above

4. The following are considered national taxes, except:

a. Income tax
b. Documentary stamp tax
c. Real property tax
d. Donor’s tax

5. As to amount, a tax can be classified as ________ when the amounts fixed is imposed by the
head or number or some measurements, hence, no valuation is needed except for the list of
things to be taxed:
a. Specific
b. Proportionate
c. Ad valorem
d. Indirect

6. Which of the following is not among the sumptuary purposes of the power to tax?
a. To serve as key instrument of social control

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

b. To effect a more equitable distribution of wealth among people

c. To achieve social and economic stability
d. To raise revenue to defray the necessary expenses of the government

7. Which of the following is incorrect?

a. Tax laws must originate from the House of the Representatives and the Senate may
propose amendments
b. Tax laws may originate from the Senate and the House of Representatives may
propose amendments
c. Tax laws may have a House version and a Senate version approved separately
d. Tax laws may be suggested by the President through the Department of Finance to
Congress

8. Which of the following income of a non-resident alien not engaged in trade or business is not
subject to 25% final tax?
a. Prizes more than P10,000
b. Interest income received from a bank’s foreign currency deposit system
c. Yield or other monetary benefit from trust funds and similar arrangements
d. Other winnings

For items 9-11

Meliodas is engaged in the sale of packed lunch and other food products. For the first quarter of 2023,
his Gross sales amounted to P1,580,000, Cost of Sales – P825,000, and Operating Expenses (all
deductible) – P140,000.

9. Assuming Meliodas availed of the 8% Flat rate, how much is his tax due for the quarter?
a. 126,400
b. 106,400
c. 83,750
d. Answer not given

10. If Meliodas availed of the Optional Standard Deduction, how much is his taxable income?
a. 948,000
b. 453,000
c. 369,000
d. Answer not given

11. In relation to the preceding number, assuming Meliodas is a corporation, how much would be
its taxable income if it opted to avail of the Optional Standard Deduction?
a. 948,000
b. 453,000
c. 369,000
d. Answer not given

For items 12-14

Dao Yow is an employee of SIM Corporation with the following information:
Gross compensation income 620,000
SSS, Pag-Ibig, Philhealth Contributions 15,000
Union Dues 5,000
Interest income on receivables from his brother in the Philippines 30,000
Interest income on dollar deposits in BPI Manila Branch 50,000
Rental income of property co-owned with his wife 420,000

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

Gain on sale of car co-owned with his wife 40,000

Dividend income from Jollibee Corp 30,000
Expenses of the family 500,000

12. How much would be Dao’s income subject to regular or ordinary income tax?
a. 910,000
b. 860,000
c. 1,090,000
d. Answer not given

13. If Dao is an OFW, how much would be his taxable income?

a. 1,090,000
b. 260,000
c. 860,000
d. Answer not given

14. If Dao is an OFW, how much would be the final withholding tax due on the above items?
a. 12,750
b. 16,5000
c. 3,000
d. Answer not given

15. X Ph paid dividends to X USA and withheld 30% tax. The tax withheld has the effect of:
a. Final settlement of the tax liability on the income
b. A credit from the recipient’s income tax liability
c. Consummating the transaction resulting in an income
d. A deduction in the recipient’s income etax

16. Andeng is an employee of Ibarra Corp and earned P200,000 for the taxable year 2021. If for the
same year, she earned P450,000 in commission income and opted to avail of the 8% flat rate,
how much is her total income tax due?
a. 36,000
b. 32,000
c. 16,000
d. Answer not given

17. The following relates to the 8% income flat rate, except:

a. The taxpayer shall be exempt from the payment of the 3% other percentage tax
b. The taxpayer must signify his intention to avail the 8% flat rate otherwise he will be
subjected to the graduated rates
c. The taxpayer is exempt from the requirements of keeping books of accounts
d. The taxpayer is no longer required to file Financial Statements together with the Annual
Income Tax Return.

18. The tax base in computing Capital Gains Tax on Sale of Shares of Stock of a Domestic
Corporation not listed or traded on a Local Stock Exchange is:
a. Selling Price
b. Selling Price or Fair market value, whichever is higher
c. Selling Price or Fair Market Value, whichever is higher, less Cost of Acquisition
d. Selling Price or Fair Market Value, whichever is lower, less Cost of Acquisition

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

19. Wax Construction Company rented a house for its manager, where the rental payments are
P87,395.67 a month. How much would be the FBT due per quarter, if any?
a. 23,529
b. 70,588
c. 141,176
d. Answer not given

20. Mountaintop Corporation had the following information:

2017 2018 2019 2020 2021
RCIT 150,000 170,000 165,000 170,000 200,000
MCIT 180,000 160,000 180,000 175,000 110,000

How much is the income tax payable for the year 2021?
a. 90,000
b. 160,000
c. 180,000
d. 200,000

21. Which of the following fringe benefits may be subject to regular income tax?
a. Car not used in the ordinary course of business given to a supervisor
b. Housing benefit given to a rank-and-file employee
c. Laundry allowance of P2,500 per year given to a managerial employee
d. Tuition fees of children of managerial employee

22. Which is the exempt monthly threshold for the following de minimis benefits starting January 1,
2018?

Medical Cash Allowance

Rice Allowance to Dependents
a 2,000 300
b 1,500 150
c 1,800 200
d 2,400 450

23. For individuals who are mixed income earners, the return to be filed is BIR Form No. _____
which is due every ____ of the following year.
a. 1700; April 15
b. 1701; April 15
c. 1700; May 15
d. 1701; May 15

24. Prior to amendments of the CREATE Law, all of the following are subject to 10% on their
taxable income, except
a. Foreign currency deposit unit as to their onshore income
b. Non-profit hospitals
c. Regional operating headquarters
d. Proprietary educational institutions

25. Generally, foreign travel expenses paid by the employer for the employee for a convention is
exempt from Fringe Benefit Tax, except
a. 70% of the first-class airplane ticket
b. $300 a day allowance for conferences excluding lodging costs

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

c. The cost of economy and business class airplane ticket

d. Traveling expense of family members of employees

26. An individual’s taxable year:

a. Calendar year
b. Fiscal year
c. Either A or B
d. None of the choices

27. Charlie was hit by a bus outside her office on her way home. As a result of the same, she
incurred hospitalization fees of P150,000, was unable to work for 6 months and did not receive
her salary of P10,000 a month. She succeeded in recovering damages of P610,000, including
moral damages of P250,000 and exemplary damages of P150,000 plus the salaries she did not
earn for the hospitalization period and the hospitalization fees. How much will be regarded as
income of Charlie?
a. 460,000
b. 610,000
c. 550,000
d. 60,000

28. LMN Corporation incurred the following taxes and licenses:

Mayor’s permit 120,000
Real property taxes 20,000
Capital gains tax 15,000
Stock Transaction Tax 12,000
Other Percentage Taxes 15,000
The mayor’s permit account included Local Business Tax in the amount of 112,000.

How much is deductible taxes and licenses?

a. 182,000
b. 155,000
c. 58,000
d. Answer not given

For items 29-30

G established a revocable trust, XYZ Bank is the trustee, in favor of G Jr., his son. During 2017, the
trust earned P1,230,000, of which P150,000 was given to G Jr., and incurred expenses amounting to
P580,000. Out of the trust, cash of P340,000 was transferred to G Jr.

29. How much is the taxable income of the trust?

a. 500,000
b. 160,000
c. 480,000
d. Answer not given

30. Assuming in the preceding number, that G Jr. warned gross income of P238,000 from his own
business, how much is his taxable income?
a. 388,000
b. 728,000
c. 337,000
d. Answer not given

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

31. Pinay Company had taxable income amounting to P650,000 before considering the following
information for taxable year 2021:

Net Operating Loss Carry-Over 100,000

Excess MCIT Carry-Over 8,000
Creditable Withheld Taxes at Source 15,000
Quarterly Tax Payments 40,000
Excess Prior Year Tax Credits 5,000
How much is the Income Tax still payable or due?
a. 137,500
b. 82,500
c. 69,500
d. Answer not given

32. Under the TRAIN, which of the following are allowable deductions for individuals earning
purely compensation income?
a. Basic personal exemption of P50,000
b. Premiums on health and/or hospitalization insurance to a maximum of P2,400 per year,
provided the gross income of the family does not exceed P250,000
c. Optional Standard Deduction of 40% of his Gross Receipts/Sales
d. None of the choices

33. A and B inherited a huge tract of land with a fair market value of P40,000,000 from their late
father C. The land earned P2,000,000 in 2021 from rentals. The relationship between A and B
for purposes of taxation is a:
a. Taxable partnership
b. General professional partnership
c. Co-ownership
d. Taxable trust

34. What purpose of taxation is served by granting an Income Tax Holiday to PEZA/BOI
registered entities?
a. Promotion of general welfare
b. Protectionism
c. Reduction of social inequity
d. Encouragement of economic growth

35. The official document that empowers a revenue officer to examine and scrutinize a taxpayer’s
books of accounts and other accounting records, in order to determine the taxpayer’s correct
internal revenue taxes
a. Letter of Authority
b. Letter Notice
c. Tax Verification Notice
d. Power of Attorney

36. An heir to particular personal property given by virtue of will

a. Devise
b. Devisee
c. Successor
d. Legatee

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

37. The following are exempt from Estate Tax, except:

a. Merger of the usufruct with the owner of the naked title
b. A devise by virtue of a fideicommissary substitution in a will
c. Transmission to a charitable institution by virtue of a special power of attorney
d. Legacy in favor of the church

38. When Juan dela Cruz died, he left a piece of land for his friend Pedro dela Cruz through a will,
with a special instruction that Pedro will transfer said property to Juan dela Cruz Jr., in the
event of Pedro’s death. The value of the real property will be included in who’s estate?

Juan dela Cruz Pedro dela Cruz

a Included Included
b Included Excluded
c Excluded Excluded
d Excluded Included

39. Jose dela Cruz died on Jan 4, 2023. His gross estate amounted to P4,500,000, which included a
house with a book value of P1,700,000 and was completely destroyed by a fire on July 4, 2023.
It was insured for P1,200,000. How much would be deductible loss, if any?
a. 1,700,000
b. 1,200,000
c. 500,000
d. 0

40. The decedent had 800 shares of ABC Corporation whose equity has a book value of
P29,900,000 and a fair market value of P39,100,000. It has common stock amounting to
P23,000,000 at P10 par value. How much would be included as part of the gross estate of the
decedent?
a. 13,600
b. 10,400
c. 13,000
d. Answer not given

41. Shi Nga Lin is a resident and citizen of China who had the following assets and their fair
market value when he died:
Shares of stock of a domestic corporation 800,000
Shares of stock of a foreign corporation 300,000
Shares of stock of a foreign corporation, 90%
of the business of which is in the Philippines 500,000
Patent exercised in the Philippines 1,500,000
Patent exercised in China 2,300,000
Deposit to BPI – Binondo Branch 400,000
Deposit to BPI – Shanghai Branch 1,200,000

China does not impose any transfer taxes in respect of intangible personal property of citizens
of the Philippines (reciprocity rule applies). How much is considered as not subject to estate
tax?
a. 7,000,000
b. 4,300,000
c. 5,400,000
d. Answer not given

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

42. The valuation of real property to be included in gross estate is:

a. The zonal value, fair market value as determined by the local assessor, fair market value
per independent assessor whichever is higher
b. The zonal value, fair market value as determined by the local assessor, whichever
is higher
c. The zonal value
d. Fair market value as determined by the local assessor

43. The following are no longer allowable deductions for estate tax under the TRAIN, except:
a. Medical Expenses
b. Funeral Expenses
c. Judicial Expenses
d. Standard Deduction

44. X Sr. donated his land to his son X Jr., at the time the land had a zonal value of P1,200,000 and
the Fair market value as determined by the local assessor was P1,300,000, at which time the
land was subject of a mortgage to secure X Sr.’s loan amounting to P800,000, of which 50%
was already paid. X Jr. died 3 years after, when his father was still alive at which time the fair
market value of the land was P1,500,000. His gross estate (not including the subject land) had a
fair market value of P5,500,000. The total allowable ordinary deductions from X Jr.’s estate
was P300,000, excluding the remaining balance of the loan of P120,000. How much is the
vanishing deductions, if any?
a. P558,000
b. P573,429
c. P654,000
d. Answer not given

For items 45-46

Mr. Dy Do died in 2021 and left Mrs. Alay V, his wife of 40 years. Mr. Dy Do had the following data
as of the date of his death:
Real property brought into the marriage 2,000,000
Income earned from said real property 580,000
Personal property inherited from his father during the marriage 1,500,000
House acquired during the marriage 1,850,000
Property for personal and exclusive use of Mrs. Alay V brought
into the marriage, including jewelry worth P54,000 754,000
Jewelry inherited by Mr. Dy Do after marriage 38,000

45. How much is the net share of the surviving spouse?

a. 2,242,000
b. 1,215,000
c. 925,000
d. Answer not given

46. What if they were married in 1998, how much is the net share of the surviving spouse?
a. 2,242,000
b. 1,215,000
c. 2,261,000
d. Answer not given

47. Donor’s tax is a/an ______ tax as to subject matter

a. Property

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

b. Excise
c. Specific
d. Ad valorem

48. Mr. and Mrs. Kalaguyo donated cash to their son and the latter’s wife on account of their
marriage celebrated on November 30, 2017, or 7 months ago, amounting to P700,000. How
much is the donor’s tax due for Mrs. Kalaguyo?
a. 12,000
b. 6,000
c. 53,800
d. Answer not given

49. Before the TRAIN, transfers of real property, not otherwise subject to CGT, whose fair market
value exceeds the selling price or consideration received is:
a. Subject to donor’s tax on the FMV
b. Subject to donor’s tax on the excess of the FMV over the consideration
c. Exempt from donor’s tax
d. Exempt from donor’s tax if considered a bona fide business transaction

50. Alan is a dealer of husked rice and sold his delivery truck used in such business. The sale of the
truck is considered:
a. Subject to capital gains tax
b. Subject to 12% VAT
c. Exempt from VAT
d. Subject to Amusement Tax

51. The term “gross selling price” includes all of the following, except
a. Total amount which the purchaser pays the seller
b. Total amount which the purchaser is obligated to pay the seller
c. Excise tax
d. Value-added tax

52. The VAT base for dealer in securities is

a. Gross receipts
b. Gross selling price
c. Gross selling price less cost of the securities sold
d. Gross receipts less cost of the securities sold

For items 53-55

For the year 2023, the following transactions transpired, all exclusive of VAT:
Sale of A Corp, a domestic supplier to B Corp, and
entity located inside the Laguna Economic Zone 3,360,000
Sale of B Corp to C Corp, an entity located inside the
Laguna Economic Zone 1,800,000
Sale of C Corp to D Corp, an entity within the customs
territory 2,680,000
Sale of D Corp to E Corp, and entity located outside the
Laguna Economic Zone 3,136,000

A, B, C, and D are all VAT-registered.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

53. How much is the output VAT liability of A Corp?

a. 360,000
b. 403,200
c. 0
d. Answer not given

54. How much is the input tax credit available to C Corp?

a. 216,000
b. 1992,857
c. 0
d. Answer not given

55. How much is the VAT payable of D Corp?

a. 376,320
b. 54,720
c. 48,857
d. Answer not given

56. Which of the following cannot claim presumptive input VAT?

a. Those engaged in the processing of sardines
b. Those engaged in the processing of milk
c. Those engaged in the manufacture of packed noodle-based instant meals
d. Those engaged in the manufacture of crude oil

57. Jumbo Corp had the following transactions that affected inventory as of April 30, 2023:
Used to pay a consultant 150,000
Donated to a charitable institution 32,000
Goods delivered for consignment on January 22, 2023 80,000
Goods delivered for consignment on February 22, 2023 100,000
Distributed as property dividends 225,000
Given as gifts to employees 28,000
The normal gross margin based on sales is 20%

How much is output VAT liability from transactions deemed sale?

a. 92,250
b. 73,800
c. 88,560
d. Answer not given

58. The following are VAT-exempt transactions, except:

a. Sale of roast turkey
b. Importation of smoked fish
c. Importation of seeds used in the manufacture of feeds for aquarium fish
d. Sale of dried rabbit

59. A returning Filipino who stayed abroad for 7 years is exempt from VAT on the importation of
his/her personal/household effects, up to:
a. 350,000
b. 250,000
c. 150,000
d. 10,000

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

60. The following are subject to VAT, except:

a. Sale of medicine by a hospital to patients who are not admitted
b. Trainings conducted by CPA firms for Continuing Professional Development
c. Premiums paid for hospitalization coverage to Health Maintenance Organizations
d. None of the above

61. Sta. Rita Cockpit is operated by Mang Gambol. During the first quarter of 2023, it had the
following receipts:
Entrance fees for audience 5,150,000
Registration fees for cockfighters 5,930,000
Receipts from restaurants owned by Mang
Gambol inside the cockpit 3,580,000
Lease payments made by private
concessionaire with places inside the cockpit 4,270,000
Advertisement fees 4,200,000

How much is the amusement tax due?

a. 2,638,800
b. 2,775,600
c. 3,407,400
d. 4,163,400

62. Which of the following is not subject to amusement tax?

a. Enchanted Kingdom, an amusement park
b. Turtles KTV, a karaoke hub
c. Happy Hour, a night club
d. Cockapitan, a cockpit

63. In general, the percentage tax return is required to be filed:

a. Within ten days from the close of the taxable quarter
b. Within 15 days from the close of the taxable quarter
c. Within 20 days from the close of the taxable quarter
d. Within 25 days from the close of the taxable quarter

For items 64-65

Tara na, Bakasyon Company has a fleet of cars, buses, trucks, ships, and planes. During the year, the
following services were rendered by Tara na, Bakasyon Company as a common carrier on the domestic
transport of passengers and cargoes.
Transport by Passengers Cargoes
Cars 627,000 128,000
Buses 585,000 185,000
Trucks 43,000 616,000
Ships 713,000 813,000
Planes 424,000 433,000

64. How much is the common carrier’s tax due?

a. 0
b. 37,650
c. 65,250
d. 71,760

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

65. How much is the output VAT?

a. 0
b. 99,360
c. 261,000
d. 397,440

66. Remingerd, of Norwegian parentage, went to the Philippines for a short lecture series wherein
she lectured about how to identify corruption. Marcoses were the audience on the first day, yet
they did not finish the series as they, and their alalays have some foreign travels to attend to.
The lecture series lasted for four weeks. The following details pertain to Remingerd’s lecture
series in the Philippines:
Professional fees for lecture (P80,000 a week) 320,000
Income from onsite bookselling 140,000
Travel expenses incurred, with receipts 120,000
Food and accommodation expenses incurred,
with receipts 100,000

How much is Remingerd’s Philippine income tax due?

a. 25,000
b. 55,000
c. 110,000
d. 115,000

67. Hanash Corporation is a resident foreign corporation with branches worldwide, including the
Philippines. Its Philippine branch had an income of P10,000,000 in 2022, and it earmarked
P8,000,000 for remittance. It actually remitted P7,000,000. How much is the branch profit
remittance tax due of the Philippine branch?
a. 0
b. 1,050,000
c. 1,200,000
d. 1,500,000

68. Ferdinand, a resident citizen, died on August 15, 2020. Details regarding his gross estate are
presented below:
Value at the death of
Ferdinand
Conjugal property 4,500,000
House, exclusive property of Ferdinand 1,500,000
Other exclusive property of Ferdinand 1,200,000

The house when it was inherited on September 16, 2015, had a fair market value of P1,150,000.
The house was mortgaged to secure a debt of P600,000, which was assumed by Ferdinand. Up
to this date, the debt has not been fully paid, and it is now being claimed as a deductible claim
against the estate.
How much is Ferdinand’s gross estate?
a. 2,700,000
b. 4,950,000
c. 7,200,000
d. 7,620,000

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Bachelor of Science in Accountancy

69. Leni donated to five institutions, with the following details:

• P3,000,000 – cash and equipment to Community Pantry Organization, a non-profit
institution dedicated to providing the homeless with free food
• P4,000,000 – cash to Dolomite Warriors, a non-profit institution which used P1,800,000
for administrative purposes
• P2,000,000 – cash to Filipino Youth, Inc., a youth non-profit organization which pays
dividends to its stockholders
• P6,000,000 – to Department of Social Welfare and Development, a government agency
• P2,500,000 – to Nescafe Corporation, a for-profit corporation

How much is the donor’s tax due?

a. 255,000
b. 315,000
c. 375,000
d. 495,000

70. What is the Value-added tax rate?

a. 10%
b. 11%
c. 12%
d. 13%

Leading Innovations, Transforming Lives, Building the Nation