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Multiple Choices - Problems: Part 2 1. B. P 9,000
Multiple Choices - Problems: Part 2 1. B. P 9,000
Ramirez
BSMA-2A
BUSINESS TAX
1. B. P 9,000
P 300,000 x 3% = P 9,000
2. A. P 0
The transaction is not subject to percentage tax as its purpose is to transport mails which are vatable
or subject to VAT. Also, it is mentioned it is a mail courier company and not indicated whether non-VAT
taxpayer therefore, the assumption is it is not subject to percentage tax but to VAT.
3. B. P 150,000
5,000,000 x 3% = P 150,000
4. A. P 0
The company is a domestic airliner which indicates that the transaction is vatable or subject to VAT
and not to percentage tax.
5. B. P 54,000
1,800,000 x 3% = P 54,000
6. B. P 51,000
1,700,000 X 3% = P 51,000
7. B. P 24,000
1,200,000 x 2% = P 24,000
8. B. P 110,000
1,200,000 x 5% = 60,000
800,000 x 5% = 40,000
600,000 x 1% = 6,000
400,000 x 1% = 4,000
110,000
9. C. P 180,000
2,000,000 x 5% = 100,000
1,000,000 x 1% = 10,000
800,000 x 7% = 56,000
200,000 x 7% = 14,000
180,000
10. B. P 40,000
800,000 x 5% = 40,000
11. D. P 250,000
2,500,000 x 10% = P 250,000
12. D. P 133,200
200,000
240,000
300,000
740,000 x 18% = 133,200
13. A. P 0
The issuing shares are mentioned as additional therefore, it must be treated as follow-through
offering which is no longer subject to IPO tax since this tax is only applicable on the initial listing.
14. C. P 4,584
P 40,000 – (20 x 100) = P 38,000 x 10% = P 3,800
P 20,000 – (2 x 200) = P 19,600 x 4% = P 784
P 4,584
15. C. 1,400,000
P 1,000,000 x 100/40 = P 2,500,000
P 700,000/P 2,500,000 x 100% = 28%, which means subject to 32% IPO tax.
P 700,000 x P100 x 2% = P 1,400,000
16. A. P 162,000
P 300,000 x 90 x .6 x .01 = P 162,000
17. C. P 120,000
P 2,000,000/P 6,000,000 x 100% = 33.33%, which means it is subject to 2% IPO tax.
P 2,000,000 x P 3 x 2% = P 120,000
18. D. P 4,500
(P 142,500/95%) x 3% = P 4,500
19. D. P 6,000
200,000 x 3% = P 6,000