For items 4 and 5:

NAME : Taxpayer is a citizen of the Philippines who is single.

Capital gain on sale of bonds held for 20 months P50,000
DATE : Capital gain on direct sale to buyer of shares of domestic
corporation held for 6 months P120,000
TAXATION Capital loss on sale of family car held for 11 months
P80,000
Capital loss on sale of land in the Philippines held for 3
1. Which is an ordinary asset?
years P60,000
A. Personal car
Net capital loss in 2021 (net taxable income of the year
B. Delivery truck
was P10,000) P20,000
C. Principal residence of the taxpayer
D. Wedding ring of the taxpayer
4. Total capital gains to consider at the end of the year:
A. P145,000
D. Co. is a domestic corporation with the following data for
B. P25,000
2002 (first year of operations):
C. P120,000
D. P130,000
Gross profit from sales P2,000,000
Dividend from domestic corporation 20,000
5. The net capital loss carry-over from 2021 would have
Capital gain on sale of land in the Philippines held for
been:
two
A. P40,000
years (sold at P1,000,000) 200,000
B. P55,000
Capital gains on sale of shares of domestic corporation
C. P10,000
held for two
D. P0
months (direct sale to buyer) 120,000
Business expenses 1,100,000
6. Which statement is wrong? The rule that capital losses are
Capital loss on bonds of domestic corporation held for 6
deductible only to the extent of capital gains is applicable:
months 30,000
A. To a corporation.
B. To an individual.
The total capital gains taxes for the year: C. To the individual taking the Optional Standard
a. P64,000. Deduction.
b. P54,000. D. To the individual taking the itemized deduction from
c. P67,000. gross income.
d. P0.
2. Jrvs Corporation is a domestic corporation with the 7. Which is a capital asset to a realty developer?
following data for 2022 (first year of operations): A. Construction equipment
Gross profit from sales P2,000,000 B. Vacant lot held for future development
Dividend from domestic corporation P20,000 C. Domestic stocks
Capital gain on sale of land in the Philippines held for two D. Head office building of the developer
years (sold at P1,000,000) P200,000
Capital gains on sale of shares of domestic corporation
held for two months (direct sale to buyer) For items 8 – 12:
P120,000 Husband and wife, with five qualified dependent children,
Business expenses P1,100,000 (with husband claiming the additional exemptions) had the
Capital loss on bonds of domestic corporation held for 6 following data for 2022:
months P30,000
Wife:
The total capital gains taxes for the year: Salaries P180,000
A. P64,000 Thirteenth month pay P15,000
B. P54,000 Premiums on health insurance paid P5,000
C. P67,000
D. P0 Husband:
Sales P2,000,000
3. Which is not an ordinary asset? Dividend from domestic corporation P20,000
A. Personal laptop of the taxpayer Dividend from resident corporation P15,000
B. Machineries and equipment Interest on PH currency bank deposit P100,000
C. Real property held for sale Royalty from patented invention P60,000
D. Leasehold improvements Royalty from books P30,000
 D. Office supplies
Capital gains on assets held for not more than 12 months:
On sale directly to buyer of shares of domestic corporation 14. Which of the following assets, if not used in business, is
P135,000 subject to regular tax?
On sale directly to buyer on bond of domestic corporation A. Real property
P40,000 B. Domestic stock rights
On sale thru the Philippine Stock Exchange of shares of C. Domestic stock option
domestic corporation P60,000 D. Taxpayer's personal car
On sale thru a real estate broker of land in the Philippines
(fair market value-P2,800,000, selling price-P3,000,000) 15. Which is a capital asset for a security dealer?
P500,000 A. Domestic stocks
On sale of vacation house and lot in Malaysia 200,000 Cost of B. Domestic bonds
sales P980,000 C. Real property held for speculation
D. Office equipment
Capital loss on asset held for more than 12 months:
On sale directly to buyer of land in Indonesia P250,000 16. Which is subject to the 5%-10% capital gains tax?
On sale of family car P100,000 A. Sale of domestic stocks directly to a buyer within or
On sale directly to buyer of bonds of domestic corporation outside the Philippines
P25,000 B. Sale of domestic bonds directly to a buyer within the
Contributions to churches P5,000 Philippines
Business expenses P500,000 C. Sale of domestic stocks through the Philippine Stock
Exchange
D. All of the above

8. The income tax withheld on the compensation income is: 17. A feature of ordinary gains as distinguished from capital
A. P20,400 gains:
B. P24,500 A. Gains from sales of assets not stock in trade.
C. P32,650 B. May or may not be taxable in full.
D. P35,400 C. Sources are capital assets.
D. No holding period.
9. What is the final tax on passive income?
A. P35,000 18. Who is not subject to capital gains tax on the sale of
B. P39,200 domestic stocks directly to a buyer?
C. P20,000 A. Dealer of cars
D. P37,000 B. Real property developer
C. Dealer of securities
10. What is the capital gain tax on real property? D. Realty dealer
A. P150,000
B. P180,000 19. Which of the following, when sold, is not subject to capital
C. P100,000 gains tax?
D. P120,000 A. Boarding house C. House and lot
B. Warehouse D. A and B
11. What is the capital gain tax on shares of stock?
A. P8,500 20. Which is not subject to the 6% capital gains tax?
B. P17,000 A. Donation of property
C. P13,500 B. Foreclosure of a mortgaged property
D. P27,000 C. Expropriation of one's property in favor of the
government
12. What is the net capital gain (loss) at the end of the year? D. Sale of property for an insufficient consideration
A. P105,000
B. P(135,000) ---Nothing Follows---
C. P52,500
D. P40,500

13. Which is an ordinary asset?

A. Appliances
B. Personal car
C. Personal cellphone
KEY ANSWERS:

1. C
2. C
3. A
4. B
5. D
6. C
7. B
8. B
9. D
10. B
11. A
12. C
13. D
14. D
15. C
16. A
17. D
18. C
19. D
20. A