4. Determine how the corporation will report tax for each item.

Match each item to a choice:

Interest from money placements in the banks, P 30,000

Dividends from its stock investments in domestic corporations, P20,000.

Gross receipts from a trading business. P500,000.

Gains from stock transaction through the Philippine Stock Exchange (PSE), P 50,000

Proceeds under an insurance policy on the loss of goods P 100,000

Choices:

Subject to capital gains tax

Subject to 30% income tax

Exempt

Exempt

Subject to 20% final tax