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

4. Which of the following is subject to 15% 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

5. Statement 1: Sale of shares of stock through Philippine stock exchange is not subject to capital gains tax Statement 2: Sale of shares of stock to a direct buyer is subject to 15% capital gains tax based on the selling price.

A. True, true B. True, false C. False, true D. False, false

Statement 1: There is capital gains tax to be paid even if the sale results to a loss if the capital asset being sold is a real property. Statement 2: Sale of shares of stock to a direct buyer resulting to a loss is exempted from payment of capital gains tax.

A. True, true B. True, false C. False, true D. False, false