Professional Documents
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CHAPTER 3 - Transfer and Business Tax
CHAPTER 3 - Transfer and Business Tax
1. Mrs. Belle, self-employed, generated the following receipts during the year:
Proceeds of Health Insurance
Receipts from business advisory services
Receipts of rentals from boarding house
300,000
250,000
100,000
P 200,000
2,200,000
500,000
P 200,000
300,000
500,000
P 2,000
3,000
3,000
P 8,000
a. P 0
c. P 5,000
b. P 2,000
d. P 8,000
7. Mr. Kim Jong, a security dealer, sold the following during the month:
Sales of securities for own account
Commission income on sale of securities of clients
Sale of vacant lot held as investment
P 400,000
36,000
1,000,000
P 200,000
50,000
180,000
30,000
200,000
300,000
P 150,000
7,500
142,500
3,000
40,000
22,000
Multiple-Choice- Problem 2
1. Jackpruit, a seller of goods, had the following transactions in January 2015.
Cash Sales
Credit/ Installment sales (40% collected)
Sales Returns and Allowances
Freight-out charged to customers
P 200,000
300,000
40,000
20,000
80,000
150,000
20,000
40,000
20,000
P
330,000
200,000
400,000
2,000,000
2,600,000
Which is correct?
a. The taxpayer is subject to VAT on other sales
b. The taxpayer is subject to VAT on taxable sales other than exempt sales
c. The taxpayer is subject to percentage tax to taxable sales other than exempt sales.
d. The taxpayer is subject to percentage tax on all sales.
7. The following data pertains to a business taxpayer during a quarter:
January
February
March
Revenue (Sales)
P 200,000
P 240,000
P 230,000
Cash Collections
180,000
240,000
220,000
Which of these properly reflect the monthly reporting of a non-VAT service provider?
January
February
March
a.
P 170,000
P
240,000
P 640,000
b.
P 200,000
P
250,000
P 220,000
c.
P 180,000
P
240,000
P 220,000
d.
P
200,000
P
250,000
P 670,000
8. Which of these properly reflect the monthly reporting of a non-VAT seller of goods?
January
February
March
a.
P 170,000
P
240,000
P 640,000
b.
P 200,000
P
250,000
P 220,000
c.
P 180,000
P
240,000
P 220,000
d.
P
200,000
P
250,000
P 670,000
9. Which of these properly reflect the monthly reporting of a VAT service provider?
January
February
March
a.
P 170,000
P
240,000
P 640,000
b.
P 200,000
P
250,000
P 220,000
c.
P 180,000
P
240,000
P 220,000
d.
P
200,000
P
250,000
P 670,000
10.Which of these properly reflect the monthly reporting of a VAT seller of goods?
January
February
March
a.
P 170,000
P
240,000
P 640,000
b.
P 200,000
P
250,000
P 220,000
c.
P 180,000
P
240,000
P 220,000
d.
P
200,000
P
250,000
P 670,000
11.Mrs. Bote sells cakes to jeepney drivers who patronize her hot and sweet cakes. During the
month, Mrs. Bote sold P 300,000 worth of cakes and collected P 280,000. What is the
amount to be reported for business tax purposes?
a. None
b. P 280,000
c. P 300,000
d. Indeterminable
12.The Non-Taste is a restaurant offering local cuisines. Which is correct?
a. No-taste is engaged in the sale of service
b. No-taste is engaged in the sale of goods
c. No-taste is engaged both in sale of goods and service
d. No-taste is not engaged in business
13.Marilyn is a beautician operating a beauty parlor. She is indebted to Zeus for P 30,000.
Unable to pay her debt, Marilyn agreed to render services to Zeus. In return, Zeus cancels
Marilyns indebtedness. Which is correct?
a. The cancellation of the P 30,000 indebtedness is a gratuity subject to donors tax
b. The cancellation of the P 30,000 indebtedness is exempt from income tax
c. The cancellation of the P 30,000 indebtedness is a constructive receipt of Marilyn
subject to tax
d. The cancellation of the P 30,000 indebtedness is a constructive receipt of Zeus subject
to business tax.
14.A is a VAT registered seller with annual sales of P 1,000,000. During the month, he
recorded only P 10,000 in sales and sustained an operating loss of P 40,000. Which is
correct?
a. The tax payer is exempt from business tax during the month since there is an operating
loss.
b. The taxpayer shall pay VAT
c. The taxpayer shall pay percentage tax
d. The taxpayer shall pay VAT if their annual sales exceeds P 1,919,500 during the year.
Otherwise, he shall pay percentage tax
15.Chemrex Company, a non-VAT taxpayer paying 3% percentage tax, exceeded the VAT
threshold on September 2014. Chemrex generated P 300,000 and P 400,000 sales in
October and November and paid P 12,000 and P 28,000 input vat in these month,
respectively. Chemrex immediately registered to the VAT system at start of November
2014.
Compute the business tax in October, assuming no claim for tax credit was filed
a. P 9,000
b. P 24,000
c. P 27,000
d. P 36,000
16. Compute the business tax in October, assuming Chemrex claim for tax credit and was
approved by the BIR
a. P 9,000
b. P 24,000
c. P 27,000
d. P 36,000
17.Compute the business tax in October, Chemrex filed for her claim for tax refund
a. P 9,000
b. P 24,000
c. P 27,000
d. P 36,000
18.Compute the business tax payable in November
a. P 12,000
b. P 20,000
c. P 36,000
d. P 48,000
19.A non-VAT taxpayer paying 3% percentage tax received P 104,000 cash and P 6,000 CWT
from the sales of services by the period. Compute the percentage tax
a. P 3,000
b. P 3,120
c. P 3,240
d. P 3,300
20.A VAT taxpayer received P 52,000, plus P4,000 creditable withholding ta certificate. What
is the output VAT?
a. P 5,571
b. P 5,760
c. P 5,820
d. P 6,000