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2. Assuming, from the immediately preceding facts, the lessor has 20 residential units with the same
monthly rent per unit and his accumulated gross receipts during the taxable year amounted to
P3,480,000. Compute the business tax.
a. P417,600 c. P372,857
b. P104,400 d. P0
3. A lessor has 15 residential units for P15,500 a month. During the taxable year, his accumulated gross
receipts amounted to P2,790,000. Compute the business tax.
a. P334,800 c. P298,929
b. P83,700 d. P0
4. Assuming, from the immediately preceding facts, the lessor has 20 residential units with the same
monthly rent per unit and his accumulated gross receipts during the taxable year amounted to
P3,720,000. Compute the business tax.
a. P446,400 c. P398, 571
b. P111,600 d. P0
5. A lessor rents his 2 commercial and 10 residential units for monthly rent of P60,000 and P15,000 per
unit, respectively. During the taxable year, his accumulated gross receipts amounted to P3,240,000
(P1,440,000 from commercial units and P1,800,000 from residential units). Compute the business
tax.
a. P388,800 c. P172,800
b. P43,200 d. P0
6. Assuming, from the immediately preceding facts, the lessor has 5 commercial units and his
accumulated gross receipts during the taxable year amounted to P5,400,000 (P3,600,000 from
commercial units and P1,800,000 from residential units). Compute the business tax.
a. P432,000 c. P486,000
b. P648,000 d. P0
7. A lessor rents his 5 commercial and 10 residential units for monthly rent of P60,000 and P15,500 per
unit, respectively. During the taxable year, his accumulated gross receipts amounted to P5,460,000
(P3,600,000 from commercial units and P1,860,000 from residential units). Compute the business
tax.
a. P655,200 c. P487,800
b. P432,000 d. P585,000
8. Determine the amortization duration for each capital goods acquired on different occasions as
follows:
Amortization
Month of Purchase Amount 12% Input Tax Useful Life
period
January 2018 P500,000 P220,000 6 years
February 2018 8,500,000 1,220,000 4 years
December 2021 10,000,000 1,220,000 5 years
January 2022 10,000,000 1,220,000 5 years
12. The sale of which of the following is exempt from business tax?
a. Urea fertilizer
b. Hybrid corn seeds
c. Herbicides
d. Chicken dung
13. Which of the following ingredients is exempt from the VAT on importation?
a. Ingredients in the manufacture of Improvised Explosive Devices
b. Ingredient used in the manufacture of human foods
c. Ingredients used in the manufacture of pet feeds
d. Ingredients used in the manufacture of poultry or livestock feeds
14. Which of the following agricultural products is not exempt from business tax on sales?
a. Ginseng
b. Coffee beans
c. Tobacco leaf
d. Tea leaf
15. Mabiga Cooperative is an agricultural cooperative which processes the coffee production of its
members for sale to NesFe Corporation, a coffee processing company selling bottled instant cofee.
Mabiga imported a coffee drier from Colombia Coffee Machineries Corporation. After 3 years of
active use, Mabiga disposed the drier to Pedro Mabanag, a member.
16. Ammacian Corporation imported goods from abroad for domestic sale. The details of the
importation is given below:
21. A business taxpayer had the following summarized transactions during the quarter:
23. Geneva Corporation, a VAT lessor which leases commercial spaces to various businesses, received
P1,284,000 rentals from various clients, net of 5% withholding tax. What is the gross receipt?
a. P 1,200,000 c. P 1,284,000
b. P 1,351,579 d. P0
24. A VAT registered seller made the following sales of goods during a month:
Selling price Fair value
To customer A P150,000 P180,000
To customer B 200,000 190,000
To customer C 102,000 150,000
Total sales P452,000
25. A VAT-registered seller made the following sales to the following entities:
Selling price Fair value
City of San Fernando P 134,000 P 200,000
ABC Trading Company 100,500 150,000
Compute the output VAT assuming the given figures are exclusive of VAT.
a. P 48,000 c. P
b. P 40,800 d. P 69,312
27. DEF Realty Corporation, a VAT-registered realty dealer, sold the following residential properties
during the month:
Zonal Assessed Selling
Value Value Price
Residential lot (old law - exempt) P 1,500,000 P 1,200,000 P 1,700,000
Residential dwelling 3,500,000 1,500,000 3,200,000
Notes:
Item v entity specific
GSP: SP v FV; Higher
If: SP – inclusive
If: FV – exclusive
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28. Sarangani, a VAT-taxpayer made a sale of real property with a fair value of P3,000,000 at a selling
price of P2,000,000. The sale qualified for installment reporting of output VAT. Sarangani is due to
receive the following amounts (net of VAT) in the coming month:
Installment P 200,000
Interest 12,000
Penalty 4,000
Total P 216,000
What is the reportable output VAT on the scheduled collection? (Installment: Just use the higher
amount)
a. P 37,920 c. P 25,920
b. P 36,000 d. P 24,420
29. A VAT-registered taxpayer has its own sales operations but also sells goods through consignees. It
also sells goods on consignment for a commission. The following were the results of operations for
the month ended April 30, 2016:
Cash P 50,000
Accounts receivables 120,000
Investments 180,000
Inventories 200,000
Property, plant and equipment 800,000
Total assets P 1,350,000
31. Mr. Kudos, a VAT-registered lawyer, had a residence with a zonal value of P2,000,000 and assessed
value of P1,500,000. The same was foreclosed by a bank for his failure to pay his bank loan.
32. Mr. Digong sold a commercial land with a selling price of P2,100,000 but with a zonal value of
P2,240,000 and assessed value of P 1,500,000.
33. Assuming the same data in the previous problem except that the commercial land was sold for
P2,464,000, what would be the output VAT.
a. P 295,680 c. P 264,000
b. P 268,800 d. P 240,000
35. A non-VAT retail business exceeded the VAT threshold on October 31, 2016. On that date, it had the
following lists of goods on hand which it acquired from VAT suppliers:
Snacks foods and grocery items P 76,500
Frozen meat and eggs 30,200
Fruits and vegetables 20,360
Shampoos, soaps and detergents 12,100
Baked bread 6,040
H: Actual v Transitional
36. A VAT taxpayer had the following data regarding its sales and input VAT during a particular quarter:
Non-traceable input VAT totaled P 24,000. Input VAT applied for tax refund totaled P 6,000.
39. A non-VAT taxpayer secured the services of a foreign consultant to solve one of its recurring
business problems. It contracted to pay P1,000,000 for the consultancy services. Compute the final
withholding VAT and the creditable input VAT.
a. P 0; P 0 c. P 120,000; P 120,000
b. P 0; P 120,000 d. P 120,000; P 0
40. The sale of a VAT registered taxpayer for the last 12 months failed to exceed the VAT threshold. It
made the following sales during the month:
41. A non-VAT professional service provider which exceeded the VAT threshold had the following
revenue and collections during the quarter:
50. Wholesale traders of which of the following is allowed presumptive input VAT?
A. Raw sugar C. Mackerel
B. Packed noodles D. Processed milk
51. Rural Bank of Gumaca, Inc. (RBG) shows the following receipts during a quarter:
Assuming RBG is not a cooperative bank, compute the gross receipt tax.
a. P408,000 c. P385,000
b. P415,000 d. P208,000
53. A dealer in securities has the following data for the quarter:
Sales, shares held as inventory 5,000,000
Sales, shares held as investment 1,500,000
Cost, shares held as inventory 2,000,000
Cost, shares held as investment 500,000
Supplies expense, net of VAT 100,000
Rent expense, net of VAT 200,000
54. Mr. Juan Cruz, VAT-exempt, issued VAT invoice to Mr. S. Santos, VAT-registered trader. As a
consequence, Mr. Juan Cruz would:
a. Be liable to VAT without the benefit of input tax credit
b. Not be liable to VAT because he is VAT-exempt
c. Be liable to percentage tax, VAT, and a surcharge of 50%
d. Not be liable to any business tax but may be liable to income tax
55. Beneco is a holder of franchise to distribute and sell electricity. In a particular quarter, its gross
receipts amounted to P2,000,000 from distribution and sale of electricity. It has also receipts from
the lease of its auditorium amounting to P600,000.
The value-added tax or percentage tax due for the quarter is:
a. P40,000 percentage tax c. P52,000 percentage tax
b. P72,000 value-added tax d. P312,000 value-added tax
56. Tarlac Company voluntarily registered to VAT. It has the following inventory at the start of the year:
Processed foods from VAT sellers P 11,200
Processed foods from non-VAT sellers 90,000
Agricultural food products 200,000
57. Moses, Inc., a VAT registered trader, compiled the following payments on purchases during the year:
Payments for merchandise from VAT suppliers P 134,400
Payments merchandise from non-VAT suppliers 82,400
Landed cost of merchandise withdrawn from the BOC 224,000
59. A manufacturer of perfume oils which newly registered as VAT taxpayers during the quarter shall
not be allowed which of the following?
a. Transitional input VAT
b. Presumptive input VAT
c. Regular input VAT
d. None of these
60. ABC Corporation sold capital goods on installment on October 1, 2018. It is agreed that the selling
price, including the VAT, shall be payable in five (5) equal monthly installments with the first
installment to be paid on October 1, 2018. The data pertinent to the sold assets are as follows:
Selling price P5,000,000 (exclusive of VAT)
Passed-on VAT P 600,000
Original Cost of Asset P 3,000,000
Accumulate Depreciation at the time of sale P 1,000,000
Unutilized Input Tax (Sold Asset) P 100,000
Required:
Seller: Records on October 1, 2018
Buyer: October 1, 2018