1. A real property was transferred to a revocable trust with Carding as the beneficiary. The property earned a total of 900,000 gross rentals during the taxable period. The expenses attributable to the maintenance of the same property amounted to P200,000. During the period, 250,000 of the total rentals was distributed to the beneficiary. How much is the allowable special deduction for income distribution to the beneficiary?

a. Zero

b. 200,000

c. 250,000

d. 300,000

2. A non-life insurance company reported a total gross premium of P2,100,000 and 100,000 cancellations. The legally required amount of reserve fund to be maintained by the company is 800,000. The beginning balance of the reserve fund is 650,000. During the year, the company paid and transferred to its reserve fund. How is the special allowable deduction for payment to reserve fund for the period?

a. 800,000

b. 650,000

c. 150,000

d. Zero