1. Which of the following is correct?

a. Interest incurred on loan from a brother is deductible

b. Interest expense incurred on unpaid value added tax is reduced by 38% of interest income subjected to final tax

c. Interest payable which had already prescribed is deductible if paid voluntarily by the taxpayer

d. Interest incurred to acquire a business asset may be added to the cost of the property

1. This is a non-deductible interest expense

a. Interest paid on indebtedness incurred to finance petroleum exploration

b. Interest paid by a corporation on scrip dividends

c. Interest paid by a corporate taxpayer who is liable on a mortgage upon real property of which the said corporation is the legal or equitable owner

d. Interest paid on tax deficiency if the tax where the interest is in itself an item that is deductible from gross income

1. Which of the following interest expense is deductible in full?

a. Interest on tax delinquency

b. Interest on personal loans

c. Interest expense which is 200% of the interest income for the same year.

d. Interest paid in advance

1. Among which of the following taxes are non-deductible for income tax purposes except?

a. Income tax

b. Value added tax

c. Excise tax

d. Donor's tax

1. Which of the following taxes incurred in the conduct of business is not allowed as deduction from business income?

a. Foreign income tax claimed as tax credit

b. Documentary stamp tax

c. Import duties

d. Local business tax

1. One is a deductible tax

a. estate taxc. donor's tax

b. franchise taxd. special assessment

1. The following taxes are deductible as itemized deductions by a self-employed resident citizen taxpayer except:

a. Customs duties and VAT on imported articles;

b. Real property taxes on property used in trade or business;

c. Documentary stamp taxes;

d. Transfer tax on sale of shares of stock through the local stock exchange.