1. Which of the following is an ordinary asset?

A. Inventory B. Jewelry received through inheritance, C. Shares of stock in a domestic corporation, D. Land held for speculation. E. Answer not given

2. Statement 1: All sales or exchanges of capital asset are subject to capital gains tax Statement 2: Even if there is a loss, there is capital gains tax to be paid if the capital asset being sold is a real property. A. True, true B. True, false C. False, true. D. False, false 3. Which of the following is subject to 6% capital gains tax? A. Sale of family home B. Sale of shares of stock in a domestic corporation to a direct buyer

C. Sale of pieces of jewelry held as capital asset D. Sale of shares of stock through Philippine Stock Exchange

E. Answer not given