Delfin corporation a security dealer declared the

9. Delfin Corporation, a security dealer, declared the following dividends in March 2020:
Cash dividend P 1, 200,000
Property dividend 800,000
The property dividend represents various merchandise inventories.
Compute the output VAT.
a. P 0
b. P 96,000 (P800,000 x 12%)
c. P 144,000
d. P 240,000
10. After consecutive years of persistent losses, Luigi Corporation decided to liquidate its business. It
had the following items in its possession upon termination of operations:
Book value Fair value
Receivables 1,200,000 1,200,000
Investments 200,000 400,000
Inventories 600,000 700,000
Properties and equipment 1,200,000 800,000
Compute the output VAT on the deemed sale transaction.
Multiple-Choice - Problems: Part 4
1. Mr. Yaobang is a VAT-registered professional. He also owns a hotel and has a professional practice.
He instructed his accounting staff to indicate zero-rated sales in hotel receipts. During the month, he
had the following receipts from his business and exercise of profession: Gross receipts from
profession P 1, 000, 000
Gross receipts from hotel 800,000
Total P 1, 800, 000

Compute the Output VAT.
2. Mang Juan applied for the cancellation of his VAT registration. His application was granted by the
BIR. At that time, he had the following inventories of vatable goods:
Supplies, bought from non-VAT suppliers P 50,000
Supplies, bought from VAT suppliers 80,000
Merchandise, bought from VAT suppliers 100,000
Merchandise, bought from non-VAT suppliers 20, 000
Total P 250,000
Compute the output VAT on the deemed sales.
3. A VAT-registered farm supply dealer sold the following during a month:
Fertilizers P 200,000
Corn seeds 250,000
Farm equipment1,200,000
Pesticides 300,000
Total 1,950,000
What is the output VAT?
a. P 234,000
b. P204,000
c. P 180,000 (P1,200,000+P300,000) x 12%
d. P 144,000
4. A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books P 300,000
Sales of books held as inventory 400,000
Sales of school supplies 900,000
Total P 1,600,000
Compute the output VAT.