CPAR B94 TAX Final PB Exam - Answers - Solutions
CPAR B94 TAX Final PB Exam - Answers - Solutions
CPAR B94 TAX Final PB Exam - Answers - Solutions
1. B 7. C 13. B 19. C
2. C 8. D 14. B 20. A
3. A 9. B 15. C 21. A
4. B 10. D 16. A 22. D
5. C 11. A 17. B 23. D
6. D 12. B 18. A 24. B
25. D
Sales to registered activities P 5,000,000 Sales to P 1,000,000
unregistered
activities
Allocated Cost of Sales Allocated Cost of
(5M/6M *3M) 2,500,000 Sales (1M/6M 500,000
*3M)
2,500,000 Gross Income 500,000
Tax Rate for National Gov’t 3% Less: Allocated 200,000
Expenses
(1M/6M *1.2M)
75,000 300,000
Corporate Income 25%
Tax Average Rate
for 2022
75,000
Share of National Government in P 75,000
GIT 5%
Corporate Income Tax 75,000
Total tax due to the National Gov’t P 150,000
26. D
Taxable income 300,000
Bad Debts (5,000)
R&D (100,000)
Depreciation (40,000)
Taxable income before contributions 155,000
Limit 10%
Allowed contribution 15,500
Contribution in full 50,000
TOTAL ALLOWABLE CONTRIBUTION 65,500
2
27. A
Charitable Contribution 65,500
Bad Debts 5,000
R&D 100,000
Depreciation 40,000
ALLOWABLE DEDUCTION 210,500
28. B
29. C
Compensation 360,000
ADD: Housing loan 48,000
Premiums 6,000
HIPP 4,800
TAXABLE COMPENSATION 418,800
30. B 31. D
32. B
Rent 2,800,000
ADD: Advance Rent 200,00
Sale of real property 2,000,000
Total REVENUE 5,000,000
33. D
Documentary Stamp Tax 30,000
ADD: Permits 20,000
TAXES 50,000
34. D
Actual EAR Ceiling Prevail
2/5 x 40,000 16,000 10,000 10,000
3/5 x 40,000 24,000 30,000 24,000
Allowed EAR 34,000
35. C
Gross Income (5,000,000-1,500,000) 3,500,000
Allowable Deductions
(1,300,000-130,000-6,000-9,900) 1,154,100
Taxable income 2,345,900
Tax Due 703,770
Tax Credit (450,000)
TAX PAYABLE 253,770
36. D
3
37. A
38. B
Out of the remaining assets of B, the estate will be paid only ₱24,000 (40% of
₱60,000). The remaining portion of the credit in the amount of ₱16,000 (₱40,000 less
₱24,000) shall be available as a deduction by the estate for purposes of computing the
estate tax.
39. B
VD on Land
Value of land (PPT) ₱ 50,000
Less: Mortgage on land paid by decedent (30,000)
Net value of PPT ₱ 20,000
Less: Prorated deductions
₱20,000 (Net value of PPT) x ₱90,000 = (1,475)
₱1,220,000 (Gross estate)
Final basis ₱ 18,525
x Rate (interval of over 2 years,
but less than 3 years) x 60%
Vanishing Deduction ₱11,115
4
40. B
VD on Land
Value of land (PPT) ₱ 50,000
Less: Mortgage on land paid by decedent (20,000)
Net value of PPT ₱30,000
Less: Prorated deductions
₱30,000 (Net value of PPT) x ₱100,000 = (2,459)
₱1,220,000 (Gross estate)
Final basis ₱27,541
x Rate (interval of over 2 years,
but less than 3 years) x 60%
Vanishing deduction ₱16,525
41. A 42. D
43. B
5
44. A
6
Notes:
a) All properties located within and without the Philippines are included in the
gross estate, the decedent being a resident of the Philippines at the time of his
death. His estate is taxed like the estate of a citizen of the Philippines.
b) The claim against the insolvent debtor was taken up as a deduction because the
corresponding account receivable from the same debtor was included in the
gross estate.
d) Actual funeral expenses and the judicial expenses incurred in the settlement of
the estate are not allowed as deductions for purposes of calculating the taxable
net estate.
45. D
7
a) Only properties located in the Philippines were included in the gross estate,
the decedent being a non-resident alien. The foreign shares, and account
receivable from a debtor residing in the U.S. are properties located outside
the Philippines, and were not included in the gross estate.
b) The claim against the insolvent person cannot be deducted because the
corresponding account receivable was not included in the gross estate.
c) When the decedent is a non-resident alien, the CCLUT expenses are prorated.
The formula for prorating is:
46. A
47. D
48. C
49. D
8
54. B 55. B
10
66. A 67. B
11
68. B 69. B
12
70. C
THE END