1.Levox Corporation wanted to donate P5 million as prize money for the world professional billiard championship to be held in the Philippines. Since the Billiard sports Confederation of the Philippines does not recognize the event it was held under the auspices of the International Professional Billiards Association, Inc. Is Levox subject to the donor's tax on its donation?

a.No, so long as the donated money goes directly to the winners and not through the association.

b.Yes, since the national sports association for billiards does not sanction the event.

c.No, because it is donated as prize for an international competition under the billiards association.

d.Yes, but only that part that exceeds the first P100,000.00 of total Levox donations for the calendar year.

2.The excess of allowable deductions over gross income of the business in a taxable year is known as:

a.Net operating loss

b.Ordinary loss

c.Net deductible loss

d.NOLCO

3.Which of the following requires public improvement?

I.Taxation

II.Police Power

III.Eminent domain

a.I onlyc. III only

b.I and II onlyd. II and III only

4.The strongest of all inherent powers of the government is

a. Power of taxationc. The power of eminent domain

b. Police powerd. Power of recall

5.The following statement correctly states the difference among the inherent powers of the state, except;

a. The property taken under eminent domain and taxation are preserved but their of police power is destroyed

b. Eminent domain does not require constitutional grant but taxation being formidable does in order to limit its exercise by the legislature

c. Police owner and taxation is exercised only by the government but eminent domain may be exercised by private entities

d. Police power regulates both property and liberty while eminent domain and taxation affects only property rights.