BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)

SUGGESTED ANSWERS
Ch!t"# $%: DOCU&ENTARY STA&' TAXES
C(A'TER $%
DOCU&ENTARY STA&' TAXES
Problem 14 1
1. True
2. True
3. False the transaction.
4. False to be taxed against the party who is not exempt.
5. True
6. False 1 days !rom the close o! the month
". True
#. True
$. True
1. True
Problem 14 2 B
%ocumentary stamp tax to be paid &'1()'2* x '1 x '2 ' 1
Problem 14 3 A
%ocumentary stamp tax to be paid &+5( x '4)'2* x '.3 ' 3
Problem 14 4 B
%,T on !irst '5(
%,T on excess o! the !irst '5( - &'3$5()'5(* x '1
Total documentary stamp tax
' 2
"$
'#1
Problem 14 5 C
%ocumentary stamp tax &'#()'1(* x '15 '12(
Problem 14 6 D
%,T on !irst '2(
%,T on excess o! the !irst '2( - &'142()'1(* x '1
Total
.ultiply by
Total documentary stamp tax
' 3
142
'145
2
'2$
Problem 14 7
Face /alue o! the bonds
%i/ide by
.ultiply by documentary stamp tax
%ocumentary stamp tax
'5(
2
25
' 1.5
' 3"5
Problem 14 8
'ar /alue o! the stoc0 &'1 x 1( shares*
%i/ide by
.ultiply by documentary stamp tax
%ocumentary stamp tax
'1(
2
5
' 2.
' 1(
Problem 14 9
'ar /alue &'1 x 1 shares*
%i/ide by /alue
'1(
2
"2
BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)
SUGGESTED ANSWERS
Ch!t"# $%: DOCU&ENTARY STA&' TAXES
.ultiply by documentary stamp tax
%ocumentary stamp tax
5
' 1.5
' "5
Problem 14 10
Face /alue o! document
%i/ide by
.ultiply by documentary stamp tax rate
%ocumentary stamp tax
'1(
2
5
' .3
' 15
Problem 14 11
Face /alue o! document &'5 x +5(*
%i/ide by
.ultiply by documentary stamp tax rate
%ocumentary stamp tax
'25(
2
1(25
' .3
' 3"5
Problem 14 12
1nsurance policy
%i/ide by
.ultiply by documentary stamp tax rate
%ocumentary stamp tax
'1((
2
5(
' .5
' 2(5
Problem 14 13
2nnual insurance premium
%i/ide by
.ultiply by documentary stamp tax rate
%ocumentary stamp tax
' 5(
4
1(25
' .5
' 625
Problem 14 14
The documentary stamp tax on the a!!ida/it o! loss is '15..
Problem 14 15
The documentary stamp tax would be '1..
Problem 14 16
,ales price
3ess4 5npaid mortgage balance
6alance
3ess4 2mount not sub7ect to %,T
6alance
%i/ide by
.ultiply by
%ocumentary stamp tax
2dd4 %,T !or the !irst '1(
Total documentary stamp tax
'1((
2(
' #(
1(
' "$$(
' 1(
"$$
' 15
' 11($#5
15
' 12(
Problem 14 17
"3
BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)
SUGGESTED ANSWERS
Ch!t"# $%: DOCU&ENTARY STA&' TAXES
%ocumentary stamp &'1(() '1(* x 15
,urcharge &'15( x 258*
1nterest &!rom 9une 25 to 9uly 25* &'15( x 28*
Total payable
'15(
3("5
25
'1$(
Problem 14 18
a. '
b. '
,ee page 53 o! the textboo0. %eeds o! property donated to the go/ernment are exempt !rom documentary stamp tax.
"4