1. Three years after acquisition, a domestic corporation disposed of its real property classified as capital asset for P3,000,000 when its fair value was P3,300,000. It was acquired for P2,800,000 when its fair value was P2,900,000. How much is the reportable net capital gain subject to regular income tax?

a. 300,000 b. 200,000 c. 100,000

2. An individual income taxpayer reported the following: Capital loss - current year: P50,000; Capital gain - current year: P200,000; and net capital loss - last year: P70,000. If the net income last year was P40,000, how much is the deductible capital loss against capital gain in the current year?

a. 90,000 b. 50,000 c. 120,000

3. C, Inc. owns a residential property it acquired for P2,000,000. It allowed it supervisory employee to use the property for ten years for free. How much is the quarterly fringe benefit tax if the employee is a non-resident alien?

a. 16,666.67 b. 4,1667.67 c. 8,333.33

4. After five years of use, Pedro disposed of his malfunctioning factory machinery at a loss of P200,000. It was acquired for P1,000,000 and depreciated over 20 years. How much is the reportable net capital loss?

a. 200,000 b. 0 c. 550,000 d. none of these

5. Generous, Inc. paid P1,1000,000 compensation to its admin employees net of P300,000 mandatory contributions and P1000,000 withholding tax on compensation. It also paid P500,000 employer share on the mandatory contributions. How much is the deductible salaries and wages?

a. 1,600,000 b. 1,500,00 c. 2,000,000

6. An individual has the following dealings in a property for the year 2019:

Short-term capital gain - P300,000

Short-Term Ordinary Loss - P100,000

Long-Term Capital Loss - P800,000

Compute the reportable net capital gain

a. (100,000) b. (500,000) c. 300,000

7. A private employee has the following remuneration for the year 2019:

Gross salaries, net of mandatory contributions - P315,000

Fixed Allowances - P35,000

13th month pay - P28,000

Christmas Gift - P5,000

Laundry Allowance - P8,000

What is the exempt benefit?

a. 36,600 b. 41,000 c. 36,000

8. A taxpayer incurred P400,000 interest expense and P120,000 interest income on time deposit. Compute the deductible interest expense.

a. 360,000 b. 400,000 c. 280,000

9. Assume the following:

2019 2020

Past Service Cost P 400,000

Current Service Cost 200,000 300,000

Annual Contribution to pension fund 150,000 850,000

How much is the 2020 deductible pension expense?

a. 340,000 b. 390,000 c, 400,000

10. A taxpayer paid the following:

Percentage Tax P 21,000

Transportation Expense 50,000

Entertainment, Amusement, and Recreation 20,000

Rental of Shop 100,000

Vet Fees on Pet Dog 25,000

Spa of Kasambahay 10,000

Salaries and wages of employee, net of P20,000 mandatory contribution 180,000

Donation to government school 20,000

Assume a gross sales of P700,000 for the year, how much is the allowable deductions from gross income?

a. 407,050 b. 394,500 c. 411,500

Please use the Philippine tax law