Professional Documents
Culture Documents
Administration
826 R. Papa St. Sampaloc, Manila
32. D pledged his ring to C for P100,000. D failed to pay his obligation on time. C sold it at public
auction for P8,000.
a. C can recover the deficiency even without stipulation
b. C cannot recover the deficiency even there is stipulation
c. C cannot recover the deficiency
d. C can recover the deficiency
33. Which is not a characteristic of contract of sale?
a. Onerous c. Consensual
b. Innominate d. Commutative
34. Mr. Ong leased to Mr. Santos a 5 KVA generator for two years at a lease rental fee of P2,000
per month and signed an option in favor of Mr. Santos to buy the generator at the end of the
term of the lease at P60,000. All rental fees are paid to be considered as partial payment of the
sale. After 12 months, Mr. Santos was able to pay the rental fees for nine months and was in
arrear for the three months rental fees. Mr. Ong terminated the lease contract and repossessed
the generator. The consequence of the transaction is:
a. Mr. Ong can collect the rental fees for the three months which are in arrears.
b. Mr. Ong can collect the rental fees for the unexpired 12 months of the lease contract.
c. When Mr. Ong took possession of the generator, he has no further action against Mr.
Santos.
d. Mr. Ong, in terminating the lease and repossessing the generator, is obliged to refund
the nine months rental fees paid by Mr. Santos.
35. When the period is on or before date, the debtor has the benefit of the period. This benefit is
lost and the obligation becomes demandable when:
a. The debtor attempts to abscond.
b. After contracting the obligation, the creditor suspects the debtor becoming insolvent.
c. The guarantee given by the debtor is not acceptable to the creditor.
d. Demand by the creditor could be useless.
36. In the following cases, the sale should be considered an equitable mortgage, except:
a. If the vendee still keeps a substantial portion of the purchase price.
b. When seller paid the capital gains tax on the property sold.
c. When the price is unusually low.
d. When seller keeps the possession of the property.
37. S sold his car to B payable in ten (10) equal monthly installments and with a mortgage
constituted on the same property (car). For Bs failure to pay a months installment, which
statement is correct?
a. S may foreclose the mortgage on Bs car but he no longer has the right to recover the
balance should it (the car) be sold for an amount lower than what he claims from B.
b. S may seek the cancellation of the sale made to B.
c.S may seek the cancellation of the same and later on foreclose the mortgage should he
find it impossible to collect from B.
d. S may seek fulfilment of the obligation of B to pay the amount due.
38. Which statement is correct about extinguishments of obligation?
a. Confusion or merger rights may occur in the person of a guarantor.
b. Agency wherein novation is effected must be in writing and thru a Special Power of
Attorney.
c. Prescription is a primary mode of extinguishing an obligation.
d. Condonation is generally gratuitous.
39. S sold to B a specific car for P20,000 payable in four equal installments. S delivered the car to
B but required to mortgage it back to S to answer for the unpaid installments. B paid the 1 st
installment, but the last three he failed to pay. S foreclosed the mortgaged property and sold it
at public auction for P13,000.
a. S can recover from B the balance of P2,000.
b. S can recover from B & balance of P2,000 if there is stipulation to that effect.
c. S cannot recover the deficiency any more even if there is stipulation to that effect.
d. None of the above.
40. When it is stipulated that the repurchase of the property sold could be made at any time, the
repurchase shall be exercised
a. Within four years from the date of the contract
b. Within ten years from the date of the contract
c. After ten years from the date of the contract
d. None of them.
41. S sold to B a parcel of land for a lump sum of P50,000 the contract states that the area is 500
square meters. Subsequently, it was ascertained that the area included within the boundaries
is really 550 square meters.
a. S to deliver 550 sq. meters and B to pay same amount.
b. S or B can rescind the We because there is no meeting of minds.
c. S is bound to deliver 500 square meters and B to pay P55,000.
d. S is bound to deliver 500 square meters and B to pay P50,000.
42. Statement No. 1: If the property is sold for nonpayment of taxes due and not made known to
the vendee before the sale, the vendor is still liable for warranty against hidden defects.
Statement No. 2: In the eviction, if seller is at fault, he must reimburse to the buyer the
purchase price of the thing sold.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true
43. A, B and C are co-owners of an undivided parcel of land. B sold his 1/3 interest to C absolutely.
Which is correct?
a. A may exercise his right of redemption on the interest sold by B to C.
b. A cannot exercise the right of redemption because the sale was made in favor of a co-
owner.
c. The sale made by B to C is void because it was not made in favor of a stranger.
d. A may redeem only of the interest sold by B to C.
44. Which of the statements is not true?
a. In sale or return ownership is transferred to the buyer upon delivery
b. Warranty against hidden defects is an accidental element of a contract of sale
c. In sale the obligation of the buyer is not only the payment of the price
d. In dacion en pago, an obligation is extinguished while in contract of sale, obligation
arise.
45. A land was sold to different vendees, the ownership shall be transferred to the person
a. Who have first taken possession in good faith.
b. Who presents the oldest title in good faith.
c. Who in good faith recorded it in the Registry of Property
d. Who have paid in good faith the purchase price in full
46. S sold car for P300,000 to B. Despite his knowledge of this defect, S obtained a waiver from B
of the latters right under the warranty against hidden defects. Subsequently, the car was
wrecked due to the recklessness of B who only the discovered the defects when the FMV of
the car was P250, 000. Choose the best answer.
a. The liability of S remains to be P300,000 because of breach of warranty against hidden
defect.
b. S is not liable anymore because the car got loss due to recklessness of B
c. The waiver is void because S knew the defect
d. S is still liable to reimburse B P50,000 plus damages and he must pay damages.
47. Here the owner of the property became the lessee thereof so no physical delivery is still
required.
a. Traditio longa manu c. Traditio constitutum possessorium
b. Traditio brevi manu d. Traditio clarium
48. In redemption, which will not be paid by the buyer- a retro?
a. Price of the thing sold.
b. Useful expenses.
c. Necessary expenses.
d. Expenses of the sale if paid by the seller.
49. Which is not a constitutional limitation?
a. Due process of law in taxation
b. Uniformity of taxation
c. Double taxation
d. Equality in Taxation
50. Which is incorrect?
a. Collection of taxes is an administrative act.
b. There can be no tax if there is no law providing for the said tax.
c. No person can be imprisoned for non-payment of capitation tax.
d. A tax is a form of administrative revenue.
51. All are essential characteristics of a tax except:
a. Payment of the tax is mandatory.
b. It is generally payable in money.
c. It is generally unlimited in amount.
d. It is proportionate in character.
52. First Statement: Estate tax is an excise, direct and proportionate tax.
Second Statement: Our tax are civil, prospective and penal in nature.
a. True; True c. True; False
b. False; False d. False; True
53. Who is the taxpayer in estate tax?
a. The heirs or successors
b. The deceased persons estate
c. The heirs legal representative
d. The executor or administrator of the estate
54. All are considered legal mode of escape from taxation except:
a. Shifting
b. Transformation
c. Capitalization
d. Tax dodging
55. One of the following is not subject to 0-15% first donors tax rates:
a. A donation to the illegitimate child of the donors niece
b. A donation to the only brother of his paternal uncle
c. A donation to the only sister of his maternal aunt
d. A donation to the grandson of his fathers brother
56. Boboy sold his residential land in Manila for P500,000. Its fair market value was P800,000, with
historical cost P100,000 only. Later Boboy died within the year of transfer due to accident. What
is the tax liability of Boboy?
a. Basic Income Tax
b. Capital Gains Tax
c. Donors tax
d. Estate tax
57. All are incorrect except one:
a. Claims against insolvent person must be notarised to be deductible
b. Losses must occur before decedents death to be deductible
c. Allowable deduction for funeral expenses can never be more than the actual expenses
d. Onerous revocable transfers are includible in the gross estate
58. Mr. and Mrs. Reyes gave the following gifts out of their conjugal property. March 15, 2000 - Land
valued at P200,000, mortgaged for P50,000 and P20,000 of which was assumed by the donee,
brother of Mr. Reyes on account of his brothers marriage held last February 14, 2000.The donors
tax due on the gift is:
a. P27,000 c. P1,600
b. P54,000 d. P 0
59. In addition to the above problem, if on April 15, 2000, Mr. and Mrs. Reyes donated a car in USA
worth P395,000 to their daughter (he paid P15,000 donors tax) but the car is exclusive property of
Mr. Reyes, and a conjugal car in the Philippines worth P300,000 to the son of Mr. Reyes by first
marriage on account of marriage last April 25, 1999. The donors tax due for Mr. and Mrs. Reyes
shall be:
a. P21,500; P45,000 c. P22,100; P42,000
b. P7,912: P45,000 d. P8,600; P42,000
60. Mr. and Mrs. Cruz gave the following conjugal donations:
Date Donee
7/15/05 Son on account of marriage on 8/20/04 P100,000 with mortgage of
P20,000 assumed by the donee.
8/15/05 Daughter on account of marriage 8/1/04 P160,000
10/22/05 Niece of Mrs. Cruz on account of marriage 11/20/05 P60,000
11/22/05 Granddaughter on account of marriage 12/22/05 P140,000.
The combined donors tax payable by Mr. and Mrs. Cruz on 8/15/05 is:
a. P200 c. None
b. P400 d. P600
61. The tax payable by Mr. Cruz only on 11/22/05 is:
a. P9,000 c. P7,600
b. P1,400 d. P9,600
62. Below are characteristics of a sound taxation system EXCEPT:
a. Administrative feasibility and compliance
b. Fiscal Adequacy
c. Theoretical Justice or Equality
d. Uniformity of Taxation
63. One of the following is NOT inherent limitation:
a. Taxes must be for public purpose
b. Equality in Taxation
c. Territoriality rule
d. Rule on double taxation
64. Three of the following are exempt or excluded from the donors tax. Which is the exception?
a. P150,000 donation to nonprofit school
b. Donation of condominium in Hong Kong to a Filipina by a British nation not residing in
the Philippines
c. P10,000 cash given by a resident alien donor to his legitimate son who is getting
married in the Philippines
d. P20,000 cash given by a nonresident alien donor to his legitimate son who is getting
married in the Philippines to a Filipina.
65. John sold his car in Manila to Sam. Its cost is P500,000 and has a fair market value of P400,000 at
the same time of sale. It was sold for P200,000. For donors tax purposes, which of the following
statements is correct?
a. There is taxable gift of P300,000
b. There is taxable gift of P200,000
c. The transfer is for insufficient consideration, hence, not subject to gift tax.
d. The transfer is subject to capital gains tax
66. Which of the following is not a scheme of shifting the incidence of taxation?
a. The manufacturer transfer the tax to the customer by adding the tax to the selling price
of the goods sold
b. The tax forms part of the purchase price
c. Changing the terms of the sale like FOB shipping point in the Philippines to FOB
destination on abroad, so that the title passes abroad instead of in the Philippines
d. The manufacturer transfer the sales tax to the distributor, then in turn to the wholesaler,
in turn to the retailer and finally to the consumer
67. In case of conflict between the tax code and generally accepted accounting principles (GAAP):
a. Both tax codes and GAAP shall be enforced
b. GAAP shall prevail over tax code
c. Tax code shall prevail over GAAP
d. The issue shall be resolved by the courts
68. Which of the following statements is not correct?
a. Taxes may be imposed to raise revenues or to regulate certain activities within the
state
b. The state can have the power of taxation even if the Constitution does not expressly
give it the power to tax
c. For the exercise of the power of taxation, the state can tax anything at any time
d. The provisions of taxation in the Philippines Constitution are grants of power not
limitations on taxing powers
69. Mr. Tuna, head of the family died on January 15, 2005, leaving the following properties and
obligations:
House and lot in Makati, F. Home P 1,500,000
Personal Properties 1,500,000
Farm lot, USA 825,000
Claim against an insolvent debtor 225,000
Transfer in contemplation of death (gratuitous) 1,500,000
Transfer passing special power of appointment 75,000
Deduction Claimed:
Funeral Expenses 575,000
Judicial Expenses 67,500
Death benefits from employer 300,000
Unpaid mortgage on the farm lot 75,000
Medical expenses (included in the funeral expense incurred
within the 1 year period with receipts) 225,000
The farm lot was inherited 4 years ago by the decedent before his death with a value then
P575,000 and a mortgage indebtedness of P150,000.
The total deduction from the gross estate is:
a. P3,092,500 b. P3,363,398 c. P867,500 d. P1,867,500
70. Mr. Kukuruku, non-resident Japanese, died leaving the following:
Exclusive properties, Philippines P 560,000
Conjugal properties, Philippines 420,000
Conjugal properties, Abroad 1,820,000
Deductions claimed:
Funeral expenses 100,000
Judicial expenses 100,500
Unpaid expenses 150,500
Losses: occurring 3 mos. After death due to fire 120,000
Donation mortis causa to Makati City Hall 180,000
Family Home (inc. above) 1,000,000
Standard deduction 1,000,000
The taxable net estate is:
a. P216,500 b. P816,500 c. P516,500 d. P916,500
71. The following are transactions and acquisitions exempt firm transfer tax except:
a. Transmission from the first heir or donee in favor of another beneficiary in accordance
with the desire of the predecessor.
b. Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to
the fideicommisary;
c. The merger of usufruct in the owner if the naked title;
d. All bequests, devises, legacies or transfers to social welfare, cultural and charitable
institutions.
72. In determining the net estate of a decedent, which of the following rule is correct?
a. Real estate abroad is not included in the gross estate of a decedent who is a resident
alien;
b. Vanishing deduction must be subject to limitations;
c. Shares of stocks being intangible property shall be included in the decedents gross
estate wherever situated;
d. Funeral expenses are deductible to the extent of 5 % of the total gross estate but not
exceeding P100,000.
73. Y, a Filipino resident, died on November 5, 2002 and his estate incurred losses due to:
1st. Loss: From fire on February 2, 2002 of improvement on his property not compensated by
insurance.
2nd Loss: From flood on February 25, 2003 of household furniture also not compensated by
insurance.
a. 1st loss is not deductible and 2nd loss is deductible;
b. Both losses are not deductible;
c. Both losses are deductible from gross estate;
d. 1st loss is deductible and 2nd loss is not.
-END-
If you lose your confidence you will lose nothing more
d.