Mr$.$ Tan was the President of a highly profitable corporation which was

engage in the marketing of Mercedes Benz. When Mr$.$ Tan's daughter got

married to the son of a senator$,$ the corporation gave the newly wedded

couple a brand new Mercedes Benz worth P$2,000,000$ and entered the

wedding gift in its books as an advertising expense.

$1^{?}$ statement: The Mercedes Benz is not taxable income to the couple

because it is truly a wedding gift, but they should pay gift tax.

Donation, Met Gitt and Donor's Jax

$2^{nl}$ statement: The donor corporation should pay the donor's tax and deduct

it from its gross income.

a$.$ Both statements are correct.

b$.$ Both statements are wrong.

c$.1^{th}$ statement correct, $2^{nd}$ statement wrong.

d$.1^{st}$ statement wrong, $2^{nd}$ statement correct.

Which of the following examples is not subject to donor's tax?

a$.$ A Filipino citizen donated a parcel of land located in the United States to

b a non$-$resident alien.

b$.$ On June $1,2024,$ Aaron made a gift of P$200,000$ to his daughter on

account of her marriage celebrated on May $1,2023.$

c$.$ Mr$.$ Ramos gives his wife a diamond ring worth P$100,000$ as a birthday

gift.

d$.$ Adel and Baby are the only heirs of Celso. Adel renounce his share of

inheritance in favor of Baby.