Cpa Review - Vat Quizzer - 2019.docx

1. A lessor has 15 residential units for P14,500 a month. During the taxable year, his accumulated gross receipts amounted to P2,610,000. Compute business tax. a. P313,200 c. P279,643 b. P78,300 d. P0 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 January 2022

10,000,000 10,000,000

1,220,000 1,220,000

5 years 5 years

9. Which is incorrect with respect to business taxes? a. VAT is a top-up tax on sales b. Percentage tax is an expensed tax c. VAT is due quarterly but is paid monthly d. Percentage tax is an explicit consumption tax 10. Which of the following transactions has no consumption tax? a. Importation b. Domestic consumption from VAT suppliers c. Domestic consumption from non-VAT suppliers d. Exportation 11. Which of these importations is subject to VAT? a. Lumber b. Flour c. Canned tuna d. Wine 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. Which of the following is subject to VAT? a. Importation of coffee drier from Colombia b. Sale of coffee drier to Mr. Mabanag c. Sale of coffee to NesFe Corporation

d. Sale of coffee by members to Mabiga Cooperative 16. Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below: Peso value of supplier’s invoice Other cost incurred to bring the goods to Philippine port Other inland costs prior to release of goods from Customs Customs duties Freight cost to bring merchandise to Ammacian’s warehouse

P 2,000,000 70,000 85,000 10%

Compute the Customs duties on the dutiable value. a. P 207,000 c. P 215,500 b. P 200,000 d. P 208,500 17. Compute the VAT on importation on the landed cost. a. P 258,600 c. P 282,600 b. P 283,440 d. P 284,460 18. Which is subject to business tax? a. Business for subsistence b. Privilege stores c. Non-resident sellers d. All of these 19. Which is considered pure consumption tax? a. VAT on importation b. Percentage tax c. Value Added Tax on sales d. Excise tax 20. Who is statutory liable to pay the VAT on importation? a. The non-resident seller b. The resident buyer c. Both seller and buyer d. The Bureau of Customs 21. A business taxpayer had the following summarized transactions during the quarter: Cash sales Sales on credit (account sales) Installment sales (P30,000 collected) Sales returns and allowances Quota discounts (ftr event – only allowed for Inc Tax) Advances for goods not yet delivered Purchase of goods, including of P72,000 VAT passed on by sellers

P

400,000 600,000 100,000 20,000 10,000 20,000 672,000

Compute the gross selling price. a. P1,100,000 b. P1,080,000

c. P1,030,000 d. P1,010,000

22. A lending investor had the following data during a month: Cash collection for loan principal Cash collection for interest Cash collection for penalties Uncollected loan principal Billed but uncollected interest Billed but uncollected penalties What is the gross receipt? a. P 456,000 b. P 450,000

P

400,000 50,000 6,000 300,000 2,000 1,000

c. P 59,000 d. P 56,000

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 Compute the output VAT. a. P 60,000 b. P 54,240

c. P 62,400 d. P 63,600

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 What is the output VAT? a. P 34,080 b. P 28,080

c. P 42,000 d. P 40,500

26. The following pertain to a VAT-registered taxpayer in July 2016: Fees from senior citizens, before 20% discount Fees from PWD, before 20% discount Fees received from regular customers Total fees Compute the output VAT assuming the given figures are exclusive of VAT.

P

P

225,000 75,000 340,000 640,000

a. P 48,000 b. P 40,800

c. P 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 Compute the output VAT. a. P 0 b. P 580,000

c. P 624,000 d. P 420,000

Notes: Item v entity specific GSP: SP v FV; Higher If: SP – inclusive If: FV – exclusive Jump to 32 and 33 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: Sales of own inventories Sales made through consignees Sales made for consignors Commission income from consignors (OV from Service) Commissions paid to consignees Compute the output VAT. a. P 96,000 b. P 92,400

c. P 80,400 d. P 62,400

P

500,000 150,000 100,000 20,000 30,000

30. Mr. Misamis, a VAT-registered taxpayer, ceases business operation in May 2015. His business properties upon termination of business operation include the following: Cash Accounts receivables Investments Inventories Property, plant and equipment Total assets

P

P

50,000 120,000 180,000 200,000 800,000 1,350,000

Compute the Output VAT on deemed sales. a. P 162,000 c. P 24,000 b. P 120,000 d. P 0 Retirement: Just check for IV sources, then counter: FV or COST - Lower 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. What would be the output VAT on the foreclosure of the property? a. None, because the same is a capital asset b. None, because the same is below the threshold on residential dwellings c. P 240,000, because the deemed sales is based on fair value d. P 180,000, because deemed sales on foreclosure sales is based on the lower of cost or fair value 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. What is the output VAT? a. P 268,800 b. P 252,000

c. P 240,000 d. P 225,000

Same rule applies to residential property. 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 34. Which is not a deemed sale transaction? a. Exchange of inventory for stocks b. Exchange of property, plants and equipment for stocks c. Exchange of inventory for property d. Exchange of stocks for property 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 Frozen meat and eggs Fruits and vegetables Shampoos, soaps and detergents Baked bread

P

76,500 30,200 20,360 12,100 6,040

Compute the transitional input VAT. a. P 0 c. P 9,493 b. P 2,904 d. P 10,140 H: Actual v Transitional 36. A VAT taxpayer had the following data regarding its sales and input VAT during a particular quarter: Sales Regular sales Export sales Sales to government Exempt sales Total

Amount P 800,000 400,000 200,000 100,000 P 1,500,000

Traceable input VAT P 40,000 18,000 15,000 8,000 P 81,000

Non-traceable input VAT totaled P 24,000. Input VAT applied for tax refund totaled P 6,000. Compute the total Output VAT. a. P 180,000 c. P 120,000 b. P 168,000 d. P 96,000 37. Compute the total creditable input VAT. a. P 99,000 c. P 91,200 b. P 95,400 d. P 85,200 38. Compute the VAT still due. a. P 81,000 c. P 34,800 b. P 76,800 d. P 24,800 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: Sales of rice Sale of flour Sale of fertilizers and seeds

P

80,000 20,000 40,000

Total Compute the output VAT. a. P 0 b. P 2,400

P

140,000

c. P 7,200 d. P 16,800

41. A non-VAT professional service provider which exceeded the VAT threshold had the following revenue and collections during the quarter: Total collections, inclusive of P13,440 advances Total revenue Compute the total output VAT. a. P 0 b. P 27,360

P

268,800 392,000

c. P 28,800 d. P 42,000

Mandatory registration: within 12 months 42. Which of the following is subject to value added tax? a. Importation of grapes and apples b. Sale of seaweeds c. Sale of fire wood and charcoal d. Sale of husked rice, corn grits and molasses 43. All of the following entities are VAT-exempt, except? a. Notre Dame, a proprietary hospital b. Philippine Airlines, a domestic air carrier c. Bank of the Philippine Islands, a commercial bank d. Tagbilaran University, a proprietary educational institution 44. Which is subject to VAT? a. Life insurance companies b. Operators of hotels, motels and inns c. International air or sea carrier d. Agricultural, credit or multi-purpose cooperative 45. Which is not subject to output VAT? a. Sale of residential lot for P1,500,000 b. Direct export sales of goods c. Cessation of status as VAT taxpayer with respect to all goods or properties on hand d. Sale of residential dwelling for P2,800,000 46. Which is not a transaction deemed sales? a. Withdrawal of goods by the proprietor for personal use b. Corporate merger or consolidation c. Retirement from or cessation of business d. Declaring business properties as property dividends

47. Which is not a zero-rated sale of goods or service? a. Transmission of messages message originating from the Philippines to abroad other than news services, embassies and diplomatic calls. b. Sale of gold to the Bangko Sentral ng Pilipinas c. Sale of electricity from hydropower and solar power plants d. Transport of passengers by air or sea from Philippines to abroad 48. Which is correct statement? a. If the monthly aggregate acquisition cost of capital goods exceeds P1,000,000, the input VAT shall be allocated over a period of 60 months starting from the month of purchase. b. The export sales of non-VAT taxpayers are exempt from VAT. c. The excess of input VAT over standard input VAT on government sales is a taxable gain subject to income tax. d. Monthly VAT is due 25 days from the end of each month with the quarterly VAT payable 20 days from the end of each quarter. 49. Wendy shows the following input VAT during a quarter: Deferred input VAT P 150,000 Allocation of current input VAT: - To Regular sales P 200,000 - To Zero-rated sales 300,000 - To Sales to the government* 100,000 - To Exempt sales 50,000 *equivalent to 8% of sales to government Compute the creditable input VAT. a. P800,000 b. P650,000

c. P587,500 d. P350,000

50. Wholesale traders of which of the following is allowed presumptive input VAT? A. Raw sugar C. Mackerel B. Packed noodles D. Processed milk a. All, except A b. All, except B

c. All of these d. None of these

51. Rural Bank of Gumaca, Inc. (RBG) shows the following receipts during a quarter: Interest income from more than 5 year loans Interest income from less than 5 year loans Gain on sale of ROPA Rental income from ROPA Service fees Dividend income Assuming RBG is not a cooperative bank, compute the gross receipt tax. a. P408,000 c. P385,000

P 1,000,000 6,000,000 400,000 200,000 800,000 100,000

b. P415,000

d. P208,000

52. Which is a correct statement? a. Distraint and levy should not be implemented simultaneously so as not to violate the proprietary interest of the taxpayer. b. Assessment must be made by the BIR within 5 years from the date the return is filed. Collection shall be enforced within 3 years from the date of such assessment. c. VAT taxpayers shall issue receipts regardless of the amount of the sale. d. Distrait and levy can be effected even in the absence of a prior assessment. 53. A dealer in securities has the following data for the quarter: Sales, shares held as inventory Sales, shares held as investment Cost, shares held as inventory Cost, shares held as investment Supplies expense, net of VAT Rent expense, net of VAT How much is the VAT payable? a. 470,000 b. 324,000

5,000,000 1,500,000 2,000,000 500,000 100,000 200,000

c. 270,000 d. Not subject to VAT

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 Compute the transitional input VAT. a. P 0 b. P1,200

c. P2,000 d. P6,000

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 Landed cost of merchandise withdrawn from the BOC What is the creditable input VAT? a. P 0 b. P41,280

82,400 224,000

c. P38,400 d. P50,108

58. A VAT-registered customer ordered the following from a non-VAT-registered supplier: Eggs P 100,000 Dried fish 150,000 Marinated fish 200,000 Under current revenue regulations, what is the output VAT? a. P 0 c. P24,000 b. P12,000 d. P36,000 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