15. Tax basis Celia donated P110,000.00 to her friend Victoria who was getting married. Celia gave no other gift during the calendar year. What is…

The question

15. Tax basis Celia donated P110,000.00 to her friend Victoria who was getting married. Celia gave no other gift during the calendar year. What is the donor's tax implication on Celia’s donation? (2011 Bar Question)

1. A.The P100,000.00 portion of the donation is exempt since given in consideration of marriage.
2. B.A P10,000.00 portion of the donation is exempt being a donation in consideration of marriage.
3. C.Celia shall pay a 30% donor's tax on the P110,000.00 donation.
4. D.The P100,000.00 portion of the donation is exempt under the rate schedule for donor's tax.

This question has not been answered yet.