ACT 184 – QUIZ 3 SET B

Name: _______________________________, CPA Section: _____ Date: ____________

GENERAL INSTRUCTIONS: This quiz is good for 1 hr and 30 minutes. Write your ORIGINAL
SECTION as reflected on your COR. A deduction of 5 points if failure to indicate your
section properly. Provide your FINAL ANSWERS CLEARLY AND ELIGIBLY on the space provided
USING BLACK OR BLUE INKS. DO NOT TRACE YOUR FINAL ANSWERS WRITTEN IN PENCILS. SHOW ALL
YOUR POSSIBLE SOLUTIONS. Use the back portion of your paper. ANY FORMS OF CHEATING ARE
NOT ALLOWED. Anyone caught cheating will automatically receive 0 points. NO CR BREAK
DURING THE QUIZ. A MAXIMUM OF 3 ERASURES AND/OR ALTERATIONS ARE ALLOWED. FAILURE TO
FOLLOW THE INSTRUCTIONS MEANS REDUCTION OF POINTS. Good Luck! 

I. Provided below are independent tax problems faced by Klay, a BS Accountancy student,
while she is reviewing for her ACT 184 quiz next week. She needs your help in solving each
tax case so that she will be able to share her knowledge to Fidel upon entering the El
Filibusterismo book. (3 points each)

Case 1: Tele-Pono Company, owned by Sisa, is a franchise grantee of telephone services and
reported the following receipts for the 2nd quarter of 2023:
Receipts from domestic calls P 3,500,000
Receipts from overseas calls 2,800,000
Receipts from the Philippine government for overseas calls 1,700,000
Receipts international organizations based in the Philippines 3,200,000
Total receipts P11,200,000

Case 2: Padre Damaso operates a cockpit. Due to high demand and pressure from the patrons
of his cockpit, he also operates a parlor shop and massage center inside the cockpit. Data
for a particular quarter follow:
Gross receipts:
Cockpit operations P 5,000,000
Parlor operations 1,000,000
Massage operations 700,000

Case 3: Basilio, a financial intermediary not performing quasi-banking functions, revealed

the following during the year:
Interest income from lending
Short term maturing instruments P 1,560,000
Medium term maturing instruments 2,550,000
Long term, over 5 years, maturing instruments 1,000,000
Rent income 670,000
Other income 1,000,000
Dividend income from subsidiary 200,000

Case 4: Crispin Lines operated 15 buses with a capacity of 45 passengers plying the route
from Cavite City to Las Piñas City, 10 taxis that runs in Makati City and 8 cars with
chauffaer. The total gross receipts during the quarter amounted to P 120,000, P 88,000, and
P 30,000, respectively.

Case 5: Kapitan Tyago is an operator of four buses plying the route from Baguio to Manila.
During November 2023, the buses remitted a total of P 450,000 including P 30,000 freight
and charges for baggage and mails.

Case 6: Doña Victorina is a grantee of several franchisees. Her gross receipts for the year
2023 included the following:
From water distribution P 1,300,000
From electric distribution 2,000,000
From gas distribution 2,400,000
From Radio VTRS (prior annual gross receipts of P10M) 8,000,000
From TV Pilipinas (prior annual gross receipts of P10.2M) 6,450,000
Total receipts P 20,150,000

Prepared by: Ms. Normallah C. Abubakar, CPA (2nd semester, AY 2022 – 2023) Page 1 of 3
ACT 184 – QUIZ 3 SET B

Case 7: Maria Clara Co. is engaged in selling telephone services to the public. Crisostomo
Ibarra availed of Maria Clara’s services by calling her girlfriend in Spain. He paid P 8,000
for thirty minutes call.

Case 8: In a recently completed race, Fidel noted the following winning tickets:
Straight bets – P 40,000, 20 tickets at P100 per ticket
Combination bets – P 20,000, 2 tickets at P200 per ticket
Trifecta bets – P 12,000, 5 tickets at P150 per ticket

Case 9: Elias insured his life with Tiyak Yarn Insurance Co. The total premium paid was
P80,000. Out of this amount, P48,000 was paid in cash and the balance in promissory note.

Case 10: Padre Salvi is a proprietor of bowling alleys has the following gross receipts:
Gross receipts from bowling operation P2,000,000
Gross receipts from sale of food and drinks inside the bowling alley 1,000,000
Gross receipts from rental of stalls inside the bowling alley 700,000

Finally, answer the following questions:

1. How much is the amusement tax due to be paid by Padre Salvi? ___________________________

2. What total amount of franchise tax should be paid by Doña Victorina? _____________________

3. The gross receipts tax of Basilio is ______________________

4. How much is the overseas communication tax to be remitted by Tele-Pono Company to BIR?
___________________________________

5. The amusement tax due of Padre Damaso is ___________________________.

6. Refer to Case 8. Assume that the parlor and massage center is not owned by Padre Damaso
but is owned by Tata Selo, non-VAT registered and whose annual gross receipts never exceeded
P 3,000,000. The amusement tax due from Padre Damaso is ____________________________.

7. The percentage tax due from Tata Selo is ______________________________.

8. How much is the overseas communication tax to be paid by Maria Clara Co? __________

9. How much is the overseas communication tax if the long distance call by Ibarra is made
to his sister in Cebu City? ______________________

10. How much is the tax on life insurance premiums? ___________________________

11. How much common carriers tax is payable by Crispin Lines? ____________________

12. Compute Kapitan Tyago’s percentage tax if he is registered as non-VAT taxpayer. _________

13. Compute the percentage tax withheld on the winnings of Fidel. ___________________

Prepared by: Ms. Normallah C. Abubakar, CPA (2nd semester, AY 2022 – 2023) Page 2 of 3
ACT 184 – QUIZ 3 SET B

II. Fill in the blanks with correct and appropriate answers (2 points each).

Tax on winnings from straight bets 1. Tax Base: ______________ 2. Tax Rate: ________

3. Tax on overseas dispatch, message

Tax Base: Amount paid for
or conversation originating from the 3. Tax Rate: 10%
the services rendered
____________
Tax Base: Gross sales/
Tax on gas and water franchises 4. Tax Rate: ________
receipts
5 - 6. Tax on sale, barter or sale of
7. Tax Base: __________ or
_____________ of stock listed and Tax Rate: 6/10 of 1%
gross value in money
traded through __________________

8. Tax on cockpits, ____________, Tax Base: Gross

Tax Rate: 18%
night or day clubs sales/receipts
Tax on Transport Network Companies
(TNC) with a valid Certificate of
Tax Base: Gross
Public Convenience with annual gross 9. Tax Rate: ________
sales/receipts
receipts of more than the VAT
threshold.

10-11. Business tax, being an indirect tax, is collected from the ___________ rather than
from the __________-consumer.

12. The entity shall pay 3% general percentage tax if its gross receipts do not exceed
_________.

13. The tax on international carriers is imposed on gross receipts from the transport of
__________ from the Philippines to a foreign country.

14 - 15. Radio and TV broadcasting companies whose annual gross receipts of the preceding
year do not exceed its special threshold may opt to register within _____ days before the
beginning of the calendar year under VAT system. Once the option is exercised, its
application is __________ irrevocable.

16. The special threshold for radio and/or TV broadcasting companies is _________________.

17. Boxing exhibitions which are promoted by Filipino citizens or by a corporation or

association which at least ________ of its capital is owned by such citizens shall be
exempts from amusement tax.
18. Business refers to ____________ engagement in a commercial activity involving the sale
of goods or services for a profit.

“Tough times last but not tough people.” 

-end-

Prepared by: Ms. Normallah C. Abubakar, CPA (2nd semester, AY 2022 – 2023) Page 3 of 3