True or False $1$

$1.$ Capital assets will not become ordinary assets when used in business.

$2.$ A vacant and unused lot is an ordinary asset to a real estate dealer.

$3.$ For taxpayers not engaged in business, assets shall cease to be ordinary asset when they are discontinued from active use for more than two years.

$4.$ Real and other properties acquired are ordinary assets to banks even if they a not engaged in the realty business.

$5.$ An ordinary asset automatically becomes a capital asset when it is withdrawn from active use.

$6.$ The sale of real property capital assets will never be subject to regular income tax.

$7.$ Donated assets become ordinary assets even if the donee do not employ the sa in business.

$8.$ An ordinary asset continues to be an ordinary asset even if idled for more than two years if the taxpayer is engaged in realty business.

$9.$ The real properties used by exempt corporations in their exempt operations

capital assets.

$10.$ Dealers in realties are subject to the regular tax on their sale of real properties.

$11.$ Capital gains from assets other than domestic stocks and real properties subject to regular income tax.

$12.$ Dealers in securities are not subject to the stock transaction tax but are subject to the regular income tax on gains realized upon the sale of stocks through Philippine Stock Exchange.

$13.$ Unit of participations in golf, polo, and similar clubs are considered stocks.

$14.$ The excess premium on the re$-$issuance of treasury stocks is subject to capital gains tax.

$15.$ The issuance of shares of stock for property is subject to capital gains tax.

$16.$ The sale of foreign stocks directly to a buyer is subject to capital gains tax.

$17.$ The $15\%$ final capital gains tax cannot apply unless and until there is a gain on sale, exchange, and other disposition of stocks directly to a buyer.

$18.$ The stock transaction tax on the sale of stocks through the PSE shall apply if there is a loss on the transaction.

$19.$ The $6\%$ capital gains tax shall not apply unless there is a gain on the sale of real property.

$20.$ The sale of real properties located abroad is subject to the $6\%$ capital gains tax.

True or False $2$

$1.$ Installment payment of capital gains tax is allowed if the ratio of downpayments over the selling price of the sale does not exceed $25\%.$

$2.$ The annual capital gains tax return is simultaneously due with the annual regular income tax return.

$3.$ The basis of properties received by way of inheritance is the basis in the hands the last owner who did not acquire the same by donation.

$4.$ When specific identification is impossible, the cost of the stocks sold determined by the weighted average method.

$5.$ The basis of the stocks received in tax$-$free exchanges is the basis of the sha given.

$6.$ The transactional capital gains tax return is required to be filed within $30$ days from the date of sale.

$7.$ The gain on the sale of stocks for stocks pursuant to a plan of merger consolidation is exempt if it resulted in the transferor acquiring corporate control over the absorbed corporation.

$8.$ The selling price is used to determine the propriety of using the installment method but the contract price is used to determine the capital gains tax payable installment.

$9.$ The excess of mortgage over the basis assumed by the buyer constitute indirect receipt which is part of the initial payment and the selling price.

$10.$ Wash sales occur when there is a repurchase of identical securities within $30$ days before and $30$ days after the date of disposal of securities at a loss.

$11.$ Control means more than $50\%$ ownership in the voting power of a corporation.

$12.$ The sale of delisted stocks is subject to stock transaction tax and not to capital received.