MULTIPLE CHOICE. Choose the letter of the correct answer.

Transfer Taxes
1. Which of the following statements is false? Transfer tax is
a. Imposed upon gratuitous transfer of property
b. Of two kinds: estate tax and donors\' tax
c. Classified as national tax
d. None of the above

2. The object of estate tax is the:

a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries

3. Justification for the imposition of transfer tax.

a. Redistribution of wealth theory;
b. Benefit received theory;
c. State partnership theory;
d. All of the above

4. Mortis causa transfer of property is effected:

a. When the property is received by the heir.
b. When the court awarded the ownership of property to a particular heir.
c. Upon the death of the decedent.
d. Upon payment of estate tax.

5. The tax imposed on the transfer of property without consideration between two or more persons
who are living at the time the transfer is made.
a. Estate tax
b. Business tax
c. Donor's tax
d. Personal tax

6. Statement 1: Cancellation of existing debt as payment for services rendered by the debtor to the
creditor is a gratuitous transfer.
Statement 2: A sale is a form of transfer transaction that requires payment of transfer tax.
a. Statements 1 & 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

7. Statement 1: A sale on installment basis is considered as an onerous transfer.

Statement 2: A gift out of love to former girlfriend is an onerous transfer.
a. Statements 1 & 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

Definition/Elements of Succession
8. It is a mode of acquisition by virtue of which, the property, rights and obligations, to the extent of the
value of the inheritance, of a person are transmitted through his death to another either by his will or by
operation of law.
a. Succession
b. Purchase
с. Barter
d. Donation

9. The elements of succession are:

I. Decedent
II. Estate
III. Heirs
IV. Administrators/Executors
a. I and II only
b. I, II and II only
c. All of the above
d. None of the above