On January 10, 2011, Maria Reyes, single-mother, donated cash in the amount of P50,000.00 to her daughter Cristina, and on December 20, 2011, she…

The question

On January 10, 2011, Maria Reyes, single-mother, donated cash in the amount of P50,000.00 to her daughter Cristina, and on December 20, 2011, she donated another P50,000.00 to Cristina. Which statement is correct? (2012 Bar Question)

1. A.Maria Reyes is subject to donor’s tax in 2011 because gross gift is P100,000.00;
2. B.Maria Reyes is exempt from donor’s tax in 2011 because gross gift is P100,000.00;
3. C.Maria Reyes is exempt from donor’s tax in 2011 only to the extent of P50,000.00;
4. D.Maria Reyes is exempt from donor’s tax in 2011 because the donee is minor.

This question has not been answered yet.