1.Which of the following is/are taxable income?

A.Income derived by political subdivision of the government.

B.Income derived by foreign government in the Philippines

C.Both "a" and "b"

D.Neither "a" nor "b"

2.As a general rule, proceeds of insurance are not taxable because they only constitute a return of what was lost (capital). Which among the following is taxable proceeds?

A.Proceed of life insurance

B.Proceed of accident or health insurance

C.Proceed of property insurance

D.Proceed of crop insurance

3.Argel took out a life insurance policy for P500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Malayan Insurance Corporation will pay Argel the amount of P500,000 after the 25^th year of the policy and her beneficiary, should he die before that date. Argel outlive the policy and received the proceeds. The premiums paid on the policy was P400,000. The proceeds from the life insurance policy of Argel is

A.Exempt from income tax

B.Taxable to the extent of P100,000

C.The entire proceeds of P500,000 is taxable

D.Taxable to the extent of P400,000

4.Which of the following maybe excluded from the gross income of a taxpayer?

A.Income derived from bequests and devices.

B.Interest on proceeds of life insurance policies

C.Compensation income

D.None of the above.

5.Recoveries of damages, shall not part of the taxable income when it represent compensation for personal injuries arising from:

i.Libel

ii.Defamation

iii.Slander

iv.Breach to promise to marry

v.Alienation of affection

A.i and ii only

B.i, ii and iii only

C.i, ii, iii, iv and v

D.None of the above

Sirony received the following prizes and winnings

Cash prize as PBB Big winnerP2,000,000

House and lot won as PBB Big winner3,000,000

Philippine lotto winnings10,000,000

Gambling winnings3,000,000

1. How much is the taxable winning and prizes?

A.P18,000,000

B.P5,000,000

C.P13,000,000

D.P8,000,000