EXERCISES 22-1.

MULTIPLE CHOICE QUESTIONS

1. Answer: A

2. Answers: B

3. Answer: D

4. Answer: B

5. Answer: D

6. Answer: C

7. Answer: D

8. Answer: A

Gift tax due per return P120,00

0
Add: Surcharge (25% x P120,000) 30,00
0
Interest (120,000 x 20% x . 1,00
5/12) 0
Total amount due 151,00
0

9. Answer: C

Gift tax due per return P120,00

0
Add: Surcharge (50% x P120,000) 60,00
0
Interest (120,000 x 20% x . 1,00
5/12) 0
Total amount due 181,00
0

10. Answer: C

Gift tax due P120,00

0
Add: Surcharge (25% x 120,000) 30,00
0
Total amount due 150,00
0
Less: Amount paid 120,00
0
Amount still due 30,00
0

11. Answer: B

Tax due per audit P 75,000

90
 Less: Tax paid 50,000
Deficiency estate tax 25,000
Add: Interest (25,000 x 20% x 7,500
18/12)
Amount still due 32,500

12. Answer: D

Total tax due P 32,500

Add: Surcharge (32,500 x 25%) 8,125
Interest (32,500 x 20% x 1,625
3/12)
Total amount due 42,250

13. Answer: C

Estate tax due per return P240,00

0
Add: Surcharge (25% x 240,000) 60,00
0
Interest (240,000 x 20% x 52,0
13/12) 00
Total amount due 352,00
0
Times portion paid 50%
Amount paid 176,00
0

14. Answer: C

Amount still due P176,00

0
Add: Interest (176,000 x 20% x 8,800
3/12)
Total amount payable 184,800

15. Answer: C

Interest (P20,000 x 20% x 12/12) P 4,000

16. Answer: C

Estate tax P
10,000
Surcharges (P10,000 x 25%) 2,500
Interest (10,000 x 20% x 3/12) 500
Estate tax due on September 30, 13,000
2001

17. Answer: D

18. Answer: A

Interest (P 40,000 x 20% x 6/12) P 4,000

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19. Answer: C

20. Answer: D

VAT due 6,000

Surcharges (6,000 x 25%) 1,500
Interest (6,000 x 20% x 2/12) 200
Payable as of June 25, 2007 7,700

21. Answer: D

22. Answer: A

Amount due (150,000 / 4) 37,500

23. Answer: C

Installment due 37,500

Add: Interest (April 15 to May 15)
(112,500 x 20% x 1/12) 1,875
Due, May 15, 2009 39,375

24. Answer: D

Installment due 37,500

Add: Interest (May 15 to June 15)
(75,000 x 20% x 1,250
1/12)
Due, June 15, 2009 38,750

25. Answer: B

Tax due 150,000

Less: Payment, April 15 37,500
Balance (basis of interest on May) 112,500
Add: Interest (April 15 to May 15) 1,875
Total 114,375
Less: Payment, May 15 39,375
Balance (basis of interest on June 75,000
Add: Interest (May 15 to June 15) 1,250
Total 76,250
Less: Payment, June 15 38,750
Balance 37,500
Add: Interest (June 15 to July 15)
(37,500 x 20% x 625
1/12)
Amount due, July 15, 2009 38,125

92