BAM 208 EXAM Version 2

* Required

1. Email address *

2. LAST NAME *

3. FIRST NAME *

4. CLASS SECTION *

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Section 1

Section 2

Section 3

Select the best answer from the following choices.

Multiple Choices
5. Mr. A, married on June 5, 2016 died on April 29, 2018 with the following data: 1 point

Gross estate –conjugal, P3,000,000; exclusive, P2,000,000. Said amount

includes a land which he received as wedding gift from his father, valued at
P540,000. His father mortgaged the land for P20,000 which was paid by
Marlon before his death. He mortgaged again the land for P50,000 after
marriage but was able to pay only P20,000 until his death. Losses and
indebtedness claimed (excluding the unpaid mortgage)amounted to
P170,000. The vanishing deduction should be: *

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399,360

384,000

299,520

288,000

6. Mr. A, single, died leaving properties he inherited 4 ½ years ago which had fair 1 point
market value ofP800,000 at the time of his death (P650,000 at the time of
inheritance). Pedro mortgaged the property for P50,000 when he already
owned it. He paid the mortgage indebtedness before he died. Other
properties in his gross estate had fair market value of P1,000,000. The total
expenses, losses, indebtedness, taxes and transfer for public purpose
amounted to P300,000. How much was the vanishing deduction? *

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108,333

225,000

208,333

508,333
7. A died leaving a house and lot to B on March 31, 2012 which was questioned by 1 point

C and it is under litigation but, subsequently, the parties executed an extra-

judicial settlement. The last day for filing the estate tax return is: *

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April 30, 2013

April 30, 2016

September 30, 2012

October 30, 2012

8. Mr. A died on October 20, 2018. During his lifetime, upon knowing that he had 1 point

Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair
market value of the car at the time of sale isP3,000,000 while it is already
valued at P5,000,000 at the time of death. The amount that will be added to
gross estate is *

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P500,000

P0

P800,000

P1,200,000
9. Mr. A died on October 20, 2018. During his lifetime, upon knowing that he had 1 point

Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair
market value of the car at the time of sale isP3,000,000 while it is already
valued at P5,000,000 at the time of death. if the consideration is fictitious,
how much will form part of gross estate? *

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P1,000,000

P2,000,000

P5,000,000

None

10. The following properties will be classified uniformly under Conjugal 1 point
Partnership of Gains and Absolute Community of Property, except: *

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Property inherited or received as donation during the marriage

Property acquired from labor, industry, work, or profession of spouses

Fruits or income due or derived during the marriage coming from common properties

Fruits or income due or derived during the marriage coming from exclusive properties

11. The personal property of a non-resident, not citizen of the Philippines would 1 point
not be included in the gross estate if: *

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The intangible personal property is in the Philippines

The intangible property is in the Philippines and the reciprocity clause of the estate tax
applies

The tangible property is in the Philippines

The personal property is shares of stocks of a domestic corporation 90% of whose

business is in the Philippines
12. Mr. A gave the following donations during 2018: January 24 - Land located in 1 point
the Philippines valued at P2,000,000 to her uncle subject to the condition
that the after will pay the donor’s tax due and unpaid mortgage amounting to
P500,000. Nov. 30 p Building in the U.S. valued at P4,500,000 to her sister.
Donor’s tax paid in the U.S. was P400,000. The donor’s tax payable on the
January 24donation shall be: *

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Zero

P 75,000

P 90,000

P 120,000

13. Mr. A gave the following donations during 2018: January 24 - Land located in 1 point
the Philippines valued at P2,000,000 to her uncle subject to the condition
that the after will pay the donor’s tax due and unpaid mortgage amounting to
P500,000. Nov. 30 p Building in the U.S. valued at P4,500,000 to her sister.
Donor’s tax paid in the U.S. was P400,000. The donor’s tax payable on the
November 30donation shall be: *

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Zero

P 11,250

P 248,750

P 345,000
14. Mr. A sold to Mr. B, his shares of stock in ABC Corporation (a closely held 1 point
domestic corporation)for P450,000 when its fair market value was
P900,000. The shares were purchased by Ms. C five years ago for
P500,000. Determine the donor’s tax due *

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P18,000

P12,000

P10,000

P9,000

15. This pertains to the total amount of money or its equivalent which the 1 point
purchaser pays or is obligated to pay to the seller in consideration of the
sale, barter or exchange of the goods or properties, excluding VAT *

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Gross Selling Price

Net Selling Price

Fair Market Value

Gross Receipts
16. * 1 point

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70,162

70,000

60,162

60,000

17. The following information for the first quarter (exclusive of vat) are from the 1 point

records of AAA., a vat registered construction firm. Accounts receivable:

January 1 - P180,000; March 31 - P 120,000 Retention receivable: January 1-
P 90,000; March 31 - P85,000 Purchase of materials: Jan. - Mar. - P480,000
Total billings for the completed works: Jan. to Mar. - P850,000 Disregarding
monthly payments, how much should be the VAT payable? *

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51,600

52,250

50,000

49,250
18. is a business tax imposed on persons, entities, or transactions specified 1 point
under Sections 116 to 127 of the National Internal Revenue Code of 1997 (also
known as Tax Code), as amended, and as required under special laws. *

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Percentage Tax

VAT

Income Tax

Excise Tax

19. Mr. A, who lease residential units where the monthly rental per unit exceeds 1 point

fifteen thousand pesos but the aggregate of such rentals of the lessor
during the year does not exceed three million pesos. Mr. A is liable of *

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Percentage Tax

VAT

Excise Tax

Doc Stamps

20. Mr. A is has business with a gross sales of P 2,000,000 and cost of sales of 1 point

P1,500,000 for the year. Mr. A is liable of *

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P 60,000 Percentage Tax

P 15,000 Percentage Tax

P 60,000 VAT

P 15,000 VAt
21. Mr. A operate a cockpit with annual gross receipts of P800,000. Inside the 1 point

arena is a canteen which generated gross receipts of P50,000 which is

owned and operated by Mr. B. How much should be the percentage tax to be
paid by Mr. A? *

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P144,000

P153,000

P24,000

P25,500

22. Mr. A operate an online store with gross sales of P200,000 and cost of sales 1 point

of P150,000 for the year. At the beginning of the year, Mr. A signified his
intent to be taxed at 8% with regards to income tax. How much is the
business tax liability of Mr. A *

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Zero

6,000

1,500

4,000
23. Mr. A operate an online store with gross sales of P200,000 and cost of sales 1 point
of P150,000 for the year. At the beginning of the year, Mr. A failed to
signified his intent to be taxed at 8% with regards to income tax. How much
is the business tax liability of Mr. A *

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none

6,000

1,500

4,000

24. AAA is a life insurance cooperative which exclusively transacts with its 1 point
members. During the current year total premium collections amounted to
P20,000,000. Which is correct? *

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AAA is not liable to pay business tax because it is a cooperative transacting with
members only.

AAA will be liable to pay VAT as collections is more than the VAT threshold

AAA will be liable to pay 2% of total premium collections

AAA will be liable to pay 4% of total premium collections

25. For percentage tax purposes in connection to winning horses, which is rate 1 point

could not be applicable? *

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10% gross receipts from winnings

2% gross receipts from winnings from double forecast

4% gross receipts from Winnings from quinella and trifecta bets

10% Gross receipts on prizes of owners of winning race horses

26. The PBA, a professional basket ball league, had an exhibition game in the 1 point

municipality of Calasiao. The Gross receipts from such game was

P1,000,000 while all related cost was P400,000. How much should be the
percentage tax due from such ball game? *

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P150,000

P90,000

Zero

P60,000

27. The Percentage Tax Return shall be accompanied by * 1 point

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BIR Form 2551Q

BIR Form 2550M

BIR Form 1700

BIR Form 2316

28. This refers to the excise tax imposed which is based on weight or volume 1 point

capacity or any other physical unit of measurement *

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Specific Tax

Ad Valorem Tax

Value Added Tax

Exercise Tax
29. This refers to the excise tax which is based on selling price or other specified 1 point

value of the goods/articles *

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Specific Tax

Ad Valorem Tax

Value Added Tax

Exercise Tax

30. In general, the following are persons liable to pay excise tax, except * 1 point

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Manufacturer

Producer

Person having possession of articles removed from the place of production without
the payment of the tax

Consumer of such goods

31. In general, persons liable to for excise tax are the following, except * 1 point

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importer

owner

Person who is found in possession of articles which are exempt from excise taxes
other than those legally entitled to exemption

None of the choices

32. Mr. A bought a car for P 1,200,000 inclusive of excise tax. How much is the 1 point

related excise tax? *

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P200,000

P240,000

P100,000

P110,000

33. Mr. A availed of plastic surgery to improve the looks of his nose. The amount 1 point

paid by Mr. A, exclusive of excise tax, was P50,000. How much should be the
excise paid? *

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P2,500

P2,000

P5,000

P3,500

34. Coocoo Cola is a flavored drink which uses a mix of caloric and non-caloric 1 point

sweeteners. If Mr. A bought 10 liters (priced exclusive of excise tax) of P45

per liter, how much should be the total excise tax? *

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P60

P45

P22.50

P120
35. In general, which is correct in terms of payment of excise tax? * 1 point

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On domestic products it shall be paid before removal from the place of production

On domestic products it shall be paid after removal from the place of production

On imported products it shall be after release from the customs' custody

On imported products it shall be after release from the customs has cleared the goods

36. Which of the following is not subject to excise tax? * 1 point

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Tobacco Products

Petroleum Products

Alcohol Products

Essential Goods

37. This is an attached to the Department of Trade and Industry - is the 1 point

Philippine government agency tasked to promote investments, extend

assistance, register, grant incentives to and facilitate the business operations
of investors in export-oriented manufacturing and service facilities inside
selected areas throughout the country. *

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PEZA

BOI

CDA

DOF
38. This is the law that generally governs PEZA registered entities * 1 point

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Republic Act No. 7916

Republic Act No. 11494

Republic Act No. 10963

Republic Act No. 11213

39. This refers to is a temporary reduction or elimination of a tax. It is 1 point

synonymous with tax abatement, tax subsidy or tax reduction. Governments

usually create this as incentives for business investment. *

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Tax Holidays

Tax Amnesty

Tax Exemptions

Special Tax Rates

40. AAA Company is a PEZA Registered engaged in export of manufactured 1 point

goods. On its initial year, the company qualified as a pioneer firm. Total gross
sales for the year was P50,000,000 while allowed deductions amounted to
P20,000,000. How much should be the tax due? *

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P1,500,000

P2,500,000

P1,000,000

None
41. AAA Co. is a PEZA registered entity. On the current year which is after the 1 point

end of its income tax holiday, the following cost were incurred: Direct
salaries - P1,000,000; Raw materials used - P 2,000,000; Supplies and fuels
used - P2,500,000; Depreciation of machine used in production -
P3,000,000; Research and Development Cost - P3,200,000. Net Sales
amounted to P30,000,000. How much should be the allowed deduction for
AAA Co.? *

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P10,700,000

P11,700,000

P8,500,000

P7,500,000

42. AAA Co. is a PEZA registered entity. On the current year which is after the 1 point
end of its income tax holiday, the following cost were incurred: Direct
salaries - P1,000,000; Raw materials used - P 2,000,000; Supplies and fuels
used - P2,500,000; Depreciation of machine used in production -
P3,000,000; Research and Development Cost - P3,200,000. Net Sales
amounted to P30,000,000. How much should be the tax to be remitted to
BIR? *

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P 1,075,000

P 915,000

P645,000

P549,000
43. For non-pioneer firms for registered with PEZA, what is the maximum period 1 point
of income tax holiday? *

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6 years

4 years

8 years

10 years

44. AAA Co. is a PEZA registered entity. On the current year which is after the 1 point

end of its income tax holiday, the following cost were incurred: Direct
salaries - P1,000,000; Raw materials used - P 2,000,000; Supplies and fuels
used - P2,500,000; Depreciation of machine used in production -
P3,000,000; Research and Development Cost - P3,200,000. Net Sales
amounted to P30,000,000. How much should be the tax to be remitted to
the Local Government Unit? *

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P430,000

P549,000

P366,000

P645,000

45. This is a type of local tax imposed on real property, such as land, buildings, 1 point

and machinery deemed real property, and other improvements. *

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Real property tax

Occupancy tax

Community tax

Local business tax

46. All entities doing business are required to pay ___________, except for those 1 point

granted exemption under the Local Government Code (LGC) and special
laws. The tax can be paid annually, on or before Jan. 20, or quarterly, within
the first 20 days of January and of the first month of each subsequent
quarter. *

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Real property tax

local business tax

community tax

occupancy tax

47. It is required to be presented every time an individual acknowledges any 1 point

document before a notary public; takes the oath of office upon election or
appointment to any position in the government service; receives any license,
certificate, or permit from any public authority; pays any tax or fees; receives
any money from any public fund; transacts other official business; or
receives any money from any public fund. *

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community tax

local business tax

real property tax

occupancy tax

48. How much is the basic fee for a residence certificate? * 1 point

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P 5.00

P 10.00

P 20.00

P 100.00
49. In computing the required community tax fee of an individual earning 1 point

income. Which statement is correct? *

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If a person is working, an additional one peso for every 1,000 pesos of his gross
annual income is added.

If a person is working, an additional one peso for every 100 pesos of his gross annual
income is added.

If a person is working, an additional ten peso for every 1,000 pesos of his gross annual
income is added.

If a person is working, an additional ten peso for every 100 pesos of his gross annual
income is added.

50. Mr. A is employed with monthly basic salary of P15,000 and allowance of P 1 point
2,000. How much should be the community tax fee? *

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P 209.00

P 204.00

P 180.00

P 185.00

51. Mr. A is a professional with an average earning of P 6,000,000 per year. How 1 point
much should be the community tax of Mr. A? *

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P 5,000.00

P 6,000.00

P 6,005.00

P 5,005.00
52. This is a tax on documents, instruments, loan agreements and papers 1 point

evidencing the acceptance, assignment, sale or transfer of an obligation,

right or property incident thereto. *

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Community tax

Documentary Stamp Tax

Paper Tax

Transaction tax

53. In connection to Documentary Stamp tax, the return shall be filed within 1 point

________ days after the close of the month when the taxable document was
made, signed, issued, accepted or transferred or upon remittance by
revenue collection agents of collection from the sale of loose documentary
stamps. *

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10 Days

15 Days

5 Days

25 Days

54. What BIR Form shall be used for Documentary Stamp Tax Declaration Return 1 point

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BIR Form 2000

BIR Form 2100

BIR Form 1800

BIR Form 1801

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