Answer the following and show your solution.

On January 2, 2021, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna. The placement earns 10% annual interest. Quezon, Inc. pre-terminated the deposit on June 30, 2024. Compute the final tax to be withheld on pre-termination PO P10,000 O P17,500 P42,000 Mr. Arturo is in a quandary and approached you to help him identify which of the following is considered as gross income for taxation purposes: P90,000 300,000 20,000 Proceeds of loan from a bank @ 7% interest per annum Basic salary Employee allowances and honoraria Indebtedness to employer which was cancelled by the latter because of their budding friendship Selling price of crops harvested for sale Costs and expenses incurred in relation to the harvested crops 50,000 400,000 150,000 P710,000 P660,000 O P570,000 O P320,000