1.) 2.) 3.) 4.) Income from source within the Philippines will be taxable in the Philippines: A B C D Non-resident Alien No Yes Yes No Non-resident Citizen Yes Yes No No Interest expense under Section 34 of the Tax Code is: A B C A Capitalizable in case Qualifying Asset Yes Yes No No Deductible if paid to related party No Yes Yes No The following relates to Depreciation expense under Section 34 of the Tax Code and current Revenue Regulation: A. Straight line method, inventory method and escalated method of depreciation is allowed while double declining balance method is equally allowed B. Depreciation of inventory held for sale can only be allowed if straight line method of deprecation is to be used C. Depreciation of machineries used in production is best charged to product cost as depreciation of this type of asset is directly proportional to its usage in the production activity D. Change in previously communicated method or life used in determination of depreciation is not required to be communicated to the Commissioner of Internal Revenue Capital Gains tax on sale of real property at P 2,000,000 with an asessor's far value of P 1,800,000 and fair value of the Commissioner is at determined at P 3,000,000. : B C D Amount Due P150,000 Type of Tax Final P 150,000 Creditable P 180,000 Final P 180,000 Creditable 5.) Income from source from foreign countries will be taxable in the Philippines: A B C D Filipino OFW residing in HK No Yes Yes No Short-term Filipino OFW resident of Manila Yes Yes No No