Which of the following is not correct regarding NOLCO a NOLCO is allowed as a deduction from business income for the next 3 succeeding years b Domestic and resident foreign corporation subject to normal income tax is allowed with NOLCO c Offshore banking unit of a foreign corporation is allowed with NOLCO d Private educational institution enjoying preferential tax rate is allowed with NOLCO The following are the records of A Company A taxpayer is qualified as head of a household for 2017 tax purposes In 2017, the taxpayer's residence was totally destroyed by fire The property had an adjusted basis and a fair market value of P130,000 before the fire During 2017, the taxpayer received insurance reimbursement of P120,000 for the destruction of his home Taxpayer's 2017 adjusted income was P70,000 The taxpayer had no casualty gains during the year What amount of the fire loss was the taxpayer entitled to claim as an itemized deduction in 2017 tax return a P0c P8,600 b P8,500d P10,000 A Co had investments in shares of stock of B Co that it acquired at a cost of P20,000 It also had investments in shares of stock of C Co that it acquired at a cost of P40,000 The value of the shares of stock of B Co had decreased to P15,000, while the shares of stock of C Co are now worthless, and had to be written off The deductible loss is a P45,000c P60,000 b P40,000d P0 One of the following losses is not deductible from gross income a Loss incurred in trade, profession, or business b Loss due to fires, storms, shipwreck, or other casualties, robbery, theft or embezzlement of property connected with trade, business or profession c Net operating loss carry over d Shrinkage n the value of the stock A company was merged with B, Inc , and only B continues to exist Mr E, a stockholder of A company was asked to surrender his 100 shares of A that he acquired for P100,000 and received under the merger 100 shares of B, Inc with a fair market value of P130,000 and cash of P30,000 The gain to Mr A on the merger was a P60,000c P20,000 b P30,000d P10,000 Antonio, Inc was merged to Teofisto Co Mr Lim, a shareholder of Antonio was required to surrender his Antonio shares of which he acquired at a cost of P180,000 and received in exchange Teofisto shares with a fair market value of P120,000 plus cash of P30,000 and property with a fair market value of P20,000 Mr Lim sold Teofisto shares for P150,000 The gain on sale of Teofisto shares was a P30,000c P35,000 b P25,000d P20,000

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Which of the following is not correct regarding NOLCO? a. NOLCO is allowed as a deduction from business income for the next 3 succeeding years

Which of the following is not correct regarding NOLCO?

a. NOLCO is allowed as a deduction from business income for the next 3 succeeding years

b. Domestic and resident foreign corporation subject to normal income tax is allowed with NOLCO

c. Offshore banking unit of a foreign corporation is allowed with NOLCO.

d. Private educational institution enjoying preferential tax rate is allowed with NOLCO.

The following are the records of A Company:

A taxpayer is qualified as head of a household for 2017 tax purposes. In 2017, the taxpayer's residence was totally destroyed by fire. The property had an adjusted basis and a fair market value of P130,000 before the fire. During 2017, the taxpayer received insurance reimbursement of P120,000 for the destruction of his home. Taxpayer's 2017 adjusted income was P70,000. The taxpayer had no casualty gains during the year. What amount of the fire loss was the taxpayer entitled to claim as an itemized deduction in 2017 tax return?

a. P0c. P8,600

b. P8,500d. P10,000

A Co. had investments in shares of stock of B Co. that it acquired at a cost of P20,000. It also had investments in shares of stock of C Co. that it acquired at a cost of P40,000. The value of the shares of stock of B Co. had decreased to P15,000, while the shares of stock of C Co. are now worthless, and had to be written-off. The deductible loss is:

a. P45,000c. P60,000

b. P40,000d. P0

One of the following losses is not deductible from gross income

a. Loss incurred in trade, profession, or business

b. Loss due to fires, storms, shipwreck, or other casualties, robbery, theft or embezzlement of property connected with trade, business or profession.

c. Net operating loss carry-over

d. Shrinkage n the value of the stock

A company was merged with B, Inc., and only B continues to exist. Mr. E, a stockholder of A company was asked to surrender his 100 shares of A that he acquired for P100,000 and received under the merger 100 shares of B, Inc. with a fair market value of P130,000 and cash of P30,000. The gain to Mr. A on the merger was

a. P60,000c. P20,000

b. P30,000d. P10,000

Antonio, Inc. was merged to Teofisto Co. Mr. Lim, a shareholder of Antonio was required to surrender his Antonio shares of which he acquired at a cost of P180,000 and received in exchange Teofisto shares with a fair market value of P120,000 plus cash of P30,000 and property with a fair market value of P20,000. Mr. Lim sold Teofisto shares for P150,000. The gain on sale of Teofisto shares was

a. P30,000c. P35,000

b. P25,000d. P20,000