ERRATUM – CPA Reviewer

TAX 1 – INCOME TAXATION

I. PRINCIPLES
 Quizzer # 5 - “B” ; Quizzer # 15 - “D” ; Quizzer # 106 - “C”

II. INDIVIDUALS
1. Quizzer # 39-43: change label in the sol’n ”CGT on shares” to “Interest income from FCDS”. Remove
in the given data the “CGT on shares of DC”.
2. Quizzer #44 – change 4th Quarter Sales to P3,500,000; answer is “B – P289,200”
3. Quizzer # 73: Explanatory Note, 2nd bulleted item – change ”II and III” to “III and IV”
4. Quizzer # 135: Solution/Explanatory Note, add “ZV” after SP and FMV

III. CORPORATIONS
1. Quizzer #30: answer should be “A” . The tax rate for FCDU shall be “7.5%”
 ADD in the explanatory note: Under TRAIN Law, interest income from FCDU deposit is now
subject to 15% FWT except if received by RFC (7.5%) and NRFC (Exempt)
2. Quizzer #54: answer should be “D”

IV. DEDUCTIONS FROM GROSS INCOME

1. Quizzer #45: answer should be P205,100. Exclude NOLCO. The results of operations is already
negative even before deducting NOLCO.
2. Quizzer #46: answer should only be P1M. The interest expense for late payment of income tax is non-
deductible because the tax itself (income tax) is a non-deductible item.
3. Quizzer #101: Change taxable year from “2018” to “2017” ; Quizzer #120: answer should be “C”

TAX 2 – TRANSFER & BUSINESS TAXES

V. ESTATE TAX
1. Page 368, Format of Computation – transfer funeral and judicial expenses to “common” deductions
and; transfer TFPU from “common” to “exclusive”
2. Quizzer #35 – answer should be “B”
3. Page 436: Explanatory Note – change ”Requirement” to “Required”
4. Quizzer # 94 - answer should be “B”; remove “out of exclusive property” in letter “C”
5. Quizzer # 124 – Change taxable year to 2017 ; Quizzer # 153 - “C”; Quizzer # 210 - “B”
6. Quizzer #195 change the explanatory note: from “When Requirement” to “When Required?”

VI. DONOR’S TAX

3. Quizzer #8 -“C” ; Quizzer #9 - “D” ; Quizzer #57 - “D”; Quizzer 99 & 100 – “D”

VII. OTHER PERCENTAGE TAXES

1. Page 487 – change the rate (%) of Sec. 124 to 4%
2. Quizzer #22 – “D”; Quizzer #35 – “B”; Quizzer #42 – “A”
3. Page 502, Explanatory note for Quizzer #44, the second Domestic Common Carrier shall be changed
to “ International Carrier”
4. Quizzer #70 – “B”; Quizzer #80 – “B”
5. Quizzer #100 – answer should be “D”; change Gross Receipts from P8.8M to P9.8M; effect on Quizzer
#101 – answer “D”; change P1,320,000 to P1,470,000
6. Quizzer #106 – answer should be “B”
7. Quizzer #126&127 – Cost should be P5M and GSP is 5.5.M

VIII. VALUE ADDED TAX

1. Quizzer #2 – “C”; Quizzer #25 – “A”; Quizzer #35 – “D”; Quizzer #38 – “C”
2. Quizzer #78 – Change the figure in the solution “vat on importation” from P60k to P78k.
3. Quizzer #100 – solution is correct, but the letter of the answer should be “D”
4. Quizzer #119 – the explanation is correct, but the letter of the answer should be “D”
5. Quizzer #141 – answer should be “A”; should only be for the month of Nov.
6. Quizzer #151 – solution is correct, but the letter of the answer should be “A”
7. Page 597, change the given data… Four (4) “heavy equipment” with UL of 4yrs. to “light equipment”