1.

A realtor transferred to his daughter who was getting married the ownership over a residential
property which was held for sale. The property had a cost basis of P2,400,000.00 and a fair
market value of P2,800,000.00 at the date of transfer.
2. 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 June 30, 2016.

Particulars Amount
Sales – own inventories 500,000.00
Sales-reported by consignees 150,000.00
Sales-in behalf of consignors 100,000.00
Commission income on goods sold for consignors 20,000.00

The billed prices of outstanding consignments still held by consignees as of April 30, 2015 are as
follows:

Month Amount
April 2016 50,000.00
May 2016 80,000.00
June 2016 120,000.00

3. Mr. Arcilla, a VAT-registered taxpayer, ceased business operation in May 2016. His business
properties upon termination of business operation include:

Particulars Amount
Cash 100,000.00
Accounts Receivables 250,000.00
Investments 300,000.00
Inventories 350,000.00
Property Plant and Equipment 1,200,000.00

4. ABC Corporation, a VAT Taxpayer, declared its goods inventory with a production costs of
P400,000.00 but with a sales value of P520,000.00 as dividends to its shareholders.
5. DEF Corporation, a VAT-registered lessor of commercial spaces, declared its stock investments in
another corporation with a total cost of P3,000,000.00 but with a current value of 3,500,000.00
as dividends to its shareholders.
6. Mr. Katamaran, a VAT-registered laywer, had a residence with a zonal value of P3,000,000.00
and assessed value of P2,500,000.00. The same was foreclosed by a bank for his failure to pay
his bank loan.
7. Uber Corporation, a Non-VAT merchandising business, made the following sales and
consignments during the month:

Particulars Amount
Sales of goods 50,000.00
Sale of Equipment 80,000.00
Consignment-80 days old 120,000.00