Multiple Choices: Problems Part 1

1. A taxpayer had the following dealings in properties:

Capital gain P 100,000
Ordinary gain 200,000
Capital loss 120,000
Ordinary loss 150,000

How much shall be included in gross income?

a. P 0 c. P200,000
b. P50,000 d. P300,000

2. In the immediately preceding problem, what is the total net gain which
will be ultimately included in net income?
a. P 0 c. P50,000
b. P30,000 d. P150,000

3. Mr. Herman had the following dealings in capital assets:

Short-term capital gain P 200,000
Long-term capital gain 100,000
Short-term capital loss 100,000
Long-term capital loss 150,000

Compute the reportable net gain.

a. P75,000 c. P40,000
b. P50,000 d. P25,000

4. If Herman is a corporate taxpayer, compute the reportable net capital

gain.
a. P75,000 c. P40,000
b. P50,000 d. P25,000

5. An individual taxpayer had the following dealings in properties:

Capital gain P 150,000
Ordinary gain 200,000
Capital loss 120,000
Ordinary loss 150,000

Compute the total amount of gain to be included in gross income subject

to progressive tax.
a. P350,000 c. P80,000
b. P230,000 d. P 0

6. A taxpayer had a P300,000 net income before the following dealings in

properties:
Ordinary gain P 80,000
Capital gain 60,000
Ordinary loss 90,000
Capital loss 70,000

If the taxpayer is an individual, compute what is the taxable income

before personal exemption?
a. P300,000 c. P280,000
b. P290,000 d. P260,000

7. Assuming the taxpayer is a corporation, compute the taxable income.

a. P300,000 c. P280,000
b. P290,000 d. P260,000
8. In the immediately preceding problem, what is the net capital loss carry
over for an individual and a corporation respectively?
a. P10,000; P10,000 c. P10,000; P 0
b. P5,000; P5,000 d. P5,000; P 0
9. After three years, an individual taxpayer disposed of a capital asset, other
than domestic stock or real property, with the following data:

Fair value P 2,000,000

Selling price 1,500,000
Cost 1,200,000

What is the capital gain subject to regular tax?

a. P800,000 c. P150,000
b. P300,000 d. P 0
10. A taxpayer had the following dealings in properties:
Short-term capital gain P 200,000
Long-term capital gain 100,000
Short-term ordinary gain 50,000
Long-term ordinary gain 150,000
Short-term capital loss 100,000
Long-term capital loss 150,000
Short-term ordinary loss 200,000
Long-term ordinary loss 120,000

Assuming that the taxpayer is an individual, compute respectively the

total items of gross income and the total items of deductions from gross
income.
a. P200,000; P260,000 c. P275,000; P320,000
b. P200,000; P260,000 d. P275,000; P320,000

11. Assuming that the taxpayer is a corporation, compute respectively the

total items of gross income and the total items of deduction from gross
income in regular income tax.
a. P500,000; P570,000 c. P250,000; P570,000
b. P500,000; P320,000 d. P250,000; P320,000

12. Two years after acquisition, a domestic corporation disposed of a real

property capital asset for P3,000,000 at a P300,000 discount from its fair
value. The property was acquired for P2,000,000 when its fair value was
P2,100,000.
Compute the capital gains subject to regular tax.
a. P3,000,000 c. P1,000,000
b. P1,300,000 d. P 0

13. After three years of use, Mr. Bestre disposed of his malfunctioning
factory equipment for P1,000,000. The equipment was acquired for
P1,500,000 and has a carrying value of P800,000 on the date of sale.

Compute the gain(loss) to be included in the determination of regular

income.
a. (P500,000) c. P100,000
b. P200,000 d. P 0

14. Pedro, a realtor, was able to dispose his 2-hectare land inventory to a
buyer after three years. The lot has a fair value of P5,000,000 and was
sold at a discount of P500,000. The lot was purchased at P3,000,000.

Compute the gain to be recognized in regular income.

a. P2,500,000 c. P1,500,000
b. P2,000,000 d. P 0
15. Globex Corporation reports the following dealings in capital assets:
2015 2016
Net Income P 10,000 P 80,000
Capital gains 30,000 50,000
 Capital loss 45,000 20,000

Compute the net capital gains in 2016.

a. P30,000 c. P15,000
b. P20,000 d. P 0
16. Ms. Taylor had the following dealings in properties:
2015 2016
Net Income P 20,000 P 80,000
Capital gains 35,000 60,000
Capital loss 60,000 25,000

Compute the net capital gains in 2016.

a. P60,000 c. P15,000
b. P35,000 d. P10,000