What is the donor's tax for a property donation made by Manolo valued at P40,000?

To determine the correct answer for the donor's tax on a property donation valued at P40,000, it's important to understand how donor's tax typically works. In many jurisdictions, the donor's tax is calculated as a percentage of the value of the donated property.

In this case, if the donor's tax rate is 10% (a common rate in several areas), then the tax owed on a property valued at P40,000 would be calculated as follows:

Donor's Tax = Value of Property x Tax Rate

Donor's Tax = P40,000 x 10% = P4,000

Therefore, the correct answer reflects the accurate calculation of the donor's tax based on the given property value of P40,000. This aligns with the rules governing donations and the donor's tax, which is designed to ensure that donated property is taxed appropriately.

The other options cannot be correct because they do not accurately reflect either the percentage of the donation or the established tax rates applicable to such donations. For instance, stating P40,000 would imply the full value of the property rather than the tax on that value, while P400 and P4,000,000 are not consistent with the expected tax rate of a