1. During the year, the taxpayer estimates an additional of P80,000 uncollectible accounts. From the estimated uncollectible accounts last period, P40,000 is ascertained to be a receivable from a client who has become bankrupt. Another uncollectible account for P20,000 is ascertained to be a receivable from an employee. How much is the reportable bad debts expense for taxation purposes?

a. P140,000

b. P80,000

c. P60,000

d. P40,000

2. Mr. Lardizabal is a grocery proprietor. He shows the following figures in relation to a motor vehicle used by his family for personal purposes:

Fair value	P900,000
Cost	1,500,000
Estimated value after useful life	300,000
Estimated useful life	10 years

How much is the deductible depreciation expense for the current taxable year?

a. Zero

b. P90,000

c. P120,000

d. P150,000

3. ABAKA Enterprise, a taxpayer using cash basis, reports the following:

Salaries expenses incurred and paid	P150,000
Salaries expenses incurred but unpaid	30,000
Advance advertising expense	25,000
Depreciation expense	5,000
Bad debts expense	10,000

How much is the deductible business expense for the taxable period?

a. P190,000

b. P165,000

c. P160,000

d. P155,000

e. P150,000