Txqna

Yellow sure
Green not sure
Dark yellow yung mga word na pinagkaiba sa may halos same na tanong
Turquoise wag pansinin
ABC Corp., a pharmaceutical company registered in 2020 had made available the following
financial information for TY2021:
Balance sheet:
Asset – Php 500,000
Liability – Php 100,000
Stockholders’ Equity – Php 400,000
Income Statement:
Gross sales – Php 5,000,000
Cost of Sales – Php 4,000,000
Operating Expenses – Php 500,000,000
How much is the income tax due under CREATE Law?
Php 125,000,000 vero
Php 100,000
Php 10,000,000
Php 150,000,000
ABC Corp., a DC, registered in 2010 made available the following financial information for
TY2021:
Balance sheet:
Asset – Php 500,000
Liability – Php 100,000
Stockholders’ Equity – Php 400,000
Income Statement:
Gross sales – Php 100,000,000
Cost of Sales – Php 60,000,000
Operating Expenses – Php 30,000,000
How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law
0 vero
Php 800,000
Php 2,100,000
Php 400,000 chegg
Kung 0 sagot
Kasi ang excess MCIT is nangyayari if mas mataas ang MCIT sa RCIT and magbabayad ka ng
MCIT for the year
Dahil nagbayad ka ng MCIT, magkakaroon ka ng excess MCIT which is pwrde mo ibawas para
sa next year mo
E since ang computation ng RCIT dyan is:
100M - 60M = 40 M gross income
40 M - 30 M OPEX = 10 M taxable income
10 M x 25% = 2.5 M tax payable
Tapos ang MCIT is 40M x 1% =400k
Mas mataas ang RCIT, kaya di ka magbabayad ng MCIT
So meaning walang excess MCIT kang irerecord kaya nilagay 0

Nicanor, an employee of ABC Corp., suffered an accident at work and died. The following are
information were made available by the employer:
Basic salary Php 600,000.00
13th month pay and other benefits 100,000.00
Commission 100,000.00
Separation Pay 500,000.00
Gross compensation income Php 1,300,000.00
Question: How much is the total exclusions from gross income?
Php 180,000
Php 590,000 kung exclusion yung separation pay ***** vero
Php 600,000
Php 90,000 kung inclusion yung separation pay
In preparing the Annual Income Tax Return of Nicanor, the following information were culled
from his accounting records:
Gross sales - Php 1,500,000
Cost of sales - Php 500,000
Gross Profit - Php 1,000,000
Operating expenses:
Depreciation - Php 100,000
Rent Expense - Php 100,000

Repairs and Maintenance - Php 100,000
Salaries and wages - Php 100,000
Utilities Expense - Php 100,000
Other income:
Cash Prizes - Php 100,000
Dividends from ABC Corp. - Php 100,000
Interest income from bank deposits - Php 100,000
Rental income - Php 1,000,000
Appraiser's value - Php 12 Million
Fair market value at time of his father's death - Php 8 Million
Shares of stocks not listed in stock exchange:
Audited Financial Statements of the company disclosed the following:
Balance Sheet: Asset - Php 5 Million
Liability - Php 3 Million
Stockholders' Equity - Php 2 Million
Income Statement: Revenue - Php 2 Million
Cost and Expense - Php 1 Million
Net Income - Php 1 Million
Additional information: Outstanding shares of stocks is 10,000
If Nicanor will sell the residential house and lot for Php 7 Million and he ask you how much is the
capital gains tax, your answer should be?
Php 600,000
Php 720,000
Php 540,000
Php 480,000 vero
Fair market value at time of his father's death - Php 8 Million
If Nicanor will sell the shares of stocks for Php 2 Million and he ask you how much is the capital
gains tax, your answer should he?
Php 30,000
Php 270,000
Php 150,000
Php 300,000
ABC Corp. registered in 2010 made available the following financial information for TY2021:
Balance Sheet:
Asset - Php 50,000,000
Liability - Php 30,000,000
Stockholders' Equity - Php 20,000,000

Income Statement:
Cost of sales - Php 60,000,000
Operating Expenses - Php 50,000,000
How much is the income tax payable under CREATE if the taxpayer is a domestic corporation?
Php 800,000
Php 2,500,000
Php 400,000 vero SURE NA SURE
Php 0
A taxpayer registered in 2010 made available the following financial information for TY2021:
Balance Sheet:
Asset - Php 500,000
Liability - Php 100,000
Stockholders' Equity - Php 400,000
Income Statement:
Gross sales - Php 100,000.000
Cost of sales - Php 60,000.000
How much is the income tax payable under CREATE Law if the taxpayer is a domestic
corporation?
Php 2,000,000
Php 400,000
Php 3,000,000
Php 2,500,000 chegg sure
A taxpayer made available the following financial information:
Expenses:
Salaries and wages - Php 1,000,000
Transportation and travel - Php 20,000
Rental - Php 240,000
Representation expense - Php 200,000
Depreciation expense - Php 200,000
Office supplies - Php 20,000
Miscellaneous expenses - Php 10,000
How much is the taxable income if the taxpayer is a domestic corporation and opted for OSD?
PhP 0
Php 4,000,000
Php 2,400,000 vero
Php 6,000,000 chegg
Kung 2.4M
10M - 6M = 4M
4M x 40% = 1.6 M (ito yung parang operating expense mo)

4M - 1.6 M = 2.4 M
Expenses:
Other information:
• Asset - Php 5,000,000
• Liability - Php 3,000,000
• SHE - Php 2,000,000
How much is the income tax due under CREATE Law if the taxpayer is an ordinary partnership
and opted for OSD?
Php 720,000
Php 600,000
Php 480,000
Php 120,000
In 2021, ABC Corp., established in 2015 reported the following information:

Balance Sheet:
Asset - Php 50,000,000
Stockholders' Equity - Php 20,000,000
Income Statement:
Until when can ABC Corp carry-over the loss against its gross income?
2026 vero
2025
2023
2024
Gross receipts - Php 10,000,000
Cost of service - Php 6,000,000
Expenses:

How much is the income tax due if the taxpayer is an individual resident citizen?
Php 361,000
Php 2,278,800
Php 340,000
Php 621,200 vero
Expenses:
How much is the total allowable deduction if the taxpayer is a domestic corporation?
Php 1,570,000
Php 1,500,000
Php 1,590,000 vero
Php 7,590,000
Balance Sheet:
Asset - Php 50,000,000
Stockholders. Equity Php 20.000.000
Income Statement:
Cost of sales -Php 6,000,000
How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation
and uses itemized deduction as method of deduction?
Php480,000
Php 400,000 chegg and ch
Php 500,000
PhP 600,000
Balance Sheet:
Asset - Php 500,000
Income Statement:
Gross sales Php 100,000,000
How much is the income tax Payable under CREATE Law if the taxpayer is a domestic
corporation?
Php 3,000,000
Php 400,000
Php 2,000,000
Php 2,500,000 chegg
The following information appeared in the 2020 BIR Form 2316 (Certificate of Compensation
Payment/Tax Withheld) of Nicanor, a purely compensation income earner:
Gross compensation income 400,000.00
13m month pay and other benefits 40,000.00
Amount of taxes withheld (by the employer) 30,000.00
Commission 50,000.00
Pagibig contributions 10,000.00
Phithealth contributions 10,000.00
SSS 10.000.00
Union dues 10,000.00
Question: The total non-taxable portion to be deducted from gross compensation income of
Nicanor is:
Php 110.000
Php 80,000
Php 60,000
Php 70,000
ABC Corp., a Non-Resident Foreign Corporation (NRFC) bought 10,000 (PV Php 100) shares of
stocks of XYZ Corp., a Domestic Corporation (DC) in the amount Php 1 Million in 2010. On
September 12, 2021, ABC Corp. sold the shares of stock to DEF Corp., a Domestic Corporation
for Php 2 Million.
Php 600,000 *
Php 300,000
Php 150,000 ****
Php 250,000
Walang sagot yung nasa chegg
The following persons are your clients: Who is allowed to claim deduction?
•Nicanor, an employee of ABC Corp
• ABC Corp, a foreign corporation doing business in the Philippines
• X17 Corp. a foreign corporation based in Europe
• inday Manobart a Thai-Korean and member of the PinkBlack K-Pop b... Korea
ABC Corp
Nicanor
The Commissioner can force a taxpayer to produce its accounting records if the taxpayer
refuses to provide the same during audit.
TRUE
Wala sa chegg
The BIR can issue an assessment even without the benefit of a notice of audit.
TRUE from ch
The Commissioner can estimate the income and expense of a taxpayer.
TRUE fromCH
FALSE from chegg
Regressive system of taxation is not allowed in the Philippines due to Inherent Limitation.
TRUE fromCH
Pres. Duterty exempted the Chinese contractor building the Kanan Dam. The next President
cannot change the agreement and impose tax thereon as a general rule.
FALSE
Direct tax can be shifted to another taxpayer.
FALSE
If Nicanor failed to signify his choice of method of taxation in the 1st quarter ITR, he shall use
the graduated tax table in computing his annual tax due.
TRUE
Facts: During year-end, Nicanor, an independent accountant has determined that his client
Inday will save more money if she will opt for graduated tax instead of the 8% optional income
tax. Nicanor, wanting to impress Inday, filed the Annual ITR using graduated tax. Statement:
Nicanor is wrong.
FALSE
Facts: During year-end, Nicanor, an independent accountant has determined that his client
Inday will save more money if she will opt for 8% optional income tax rather than the graduated
tax Inday initially chose. Nicanor, wanting to impress Inday, filed the Annual ITR using 8% tax
rate. Statement: Nicanor is wrong.
TRUE
Income of on-line sellers are taxable.
TRUE
The Sangguniang Panglungsod ng Mandaluyong issued an ordinance prohibiting riding in

tandem. This power exercised by the legislative department is in keeping with?
POLICE POWER
In order to help fast-tracked development, the Government of the Philippines expropriated

properties along the proposed national rail track. This power exercised by the State is in
keeping with?
EMINENT DOMAIN
Military power
Police power
Power of taxation
It refers to the imposition of the tax
TAXATION
States do not tax other foreign states due to this principle.
INTERNATIONAL COMITY
The legislative body cannot impose tax upon income of certain persons outside Philippine
jurisdiction due to this principle
Territoriality
Reciprocity
International comity
Inherent limitation of taxation
Nusseir Yassin is a popular Palestinian-Israeli blogger using the page "Daily Nas". Under
Philippine taxation, he is ALIEN classified as?
NON-RESIDENT ALIEN
Basel Manadil (a.k.a. The Hungry Syrian Wanderer) is a Syrian vlogger based in the
Philippines. For taxation purposes, he is classified as?
RESIDENT ALIEN
The payor in withholding tax system
WITHHOLDING AGENT
A kind of withholding tax which was deducted on commission of agents not considered
employees of the company
final withholding tax ( from CH)
Generally, tax laws operate only within Philippine jurisdiction.
INHERENT
Visa fees collected by the United States are not taxed by the Philippine government.
INHERENT
If Nicanor are both engaged in trade or business, both must be taxed alike.
CONSTITUTIONAL
Nicanor reported to the BIR that Inday is a tax evader. The BIR cannot forthwith collect the tax
because it has to go through a process.
CONSTITUTIONAL ******
INHERENT
Congress is proposing a law giving franchise to ABC Network Corporation. However, the State
proposes imposition of a higher tax if it is proven that ABC Network will not help the government
with the reporting of its programs and projects. This is not allowed due to this limitation.
CONSTITUTIONAL
The following are essential elements of a tax, except:
a. It must be levied by lawmaking body
b. It must be levied for public purpose
c. It must be payable in money
d. It must be proportionate in character
Real property tax is an example of:
a. Capitation tax
b. Excise tax
c. Privilege tax
d. Property tax (jas)

Professional tax collected by Treasurers of local government units is an example of:
a. Direct tax (from CH)
b. Income tax
c. Privilege tax FINALasnwer
d. Specific tax
With the intention of limiting contact by taxpayers when dealing with the BIR and at the same
time save time and money, the Bureau allowed on-line filing of returns and other reports. This is
in keeping with:
a. Fiscal Adequacy
b. Administrative Feasibility (from ch
c. Theoretical Justice
d. Uniformity in Taxation
(nasa chegg rin https://www.chegg.com/homework-help/questions-and-answers/commissioner-

force-taxpayer-produce-accounting-records-taxpayer-refuses-provide-audit-grou-q84757287
All of the following principles are inter-related, except:
a. Ability to pay
b. Equity in taxation
c. Progressive system of taxation
d. Theoretical justice
e. Uniformity of taxation
The Congress of the Philippines enacted a law exempting the compensation and/or allowance
or payments given to frontliners in consideration of their efforts in combatting COVID-19. This
power exercised by the legislative department is in keeping with?
Power of Taxation
Power of eminent domain
Police Power
Military power
The following are your clients as a Consultant: Who among them is qualified to use 8% optional
income tax?
an architect who opted for method of deduction whose gross receipts amounted to Php 23
Million
a duly registered Barangay Micro Business Enterprise with gross soles of Php 3 Million
a doctor operating his own clinic with gross receipts of Php 1 and at the same time an employee
of ABC Hospital and Medical Center with a gross salary of Php 3M
a partner in ABC & CO., CPAs whose share in income of GPP amounted to Php 1
https://www.coursehero.com/u/file/108063970/E7C201D7-F57F-4722-B0BF-
26CB035B0FA0png/?justUnlocked=1#/question/as
The following are your clients as a Consultant:
• S1 - an online seller of cakes and pastries whose gross sales amounted to Php 300,000
• S2 - an employee whose gross compensation income amounted to Php 3 million •
• S3 - a VAT registered seller of goods whose gross receipts amounted to Php 1 Milfion
Who among them is qualified to use 8% optional income tax?
S1(eto ata tama)
S2 from ch
S3
All are qualified
S1 - If fringe benefit is given to non-rank and file employees, fringe benefit is generally subject
to FBT
S2 - If fringe benefit is given to rank and file employees, fringe benefit is subject to withholding
tax on compensation.
S1 is true
Both are false
S2 is true
Both are true nasa module ng income tax (jas)
Walang sagot sa chegg
https://www.chegg.com/homework-help/questions-and-answers/commissioner-estimate-income-
expense-taxpayer-group-answer-choices-true-false-s1-fringe-be-q84757231?
trackid=dadf3845a1dd&strackid=0f85cf766775
Indaylyn Diaz became the 1st Filipino gold medalist in the 2020 Olympics held in Tokyo, Japan.
As a result, she received the following monetary rewards:
Nature of Benefit/Reward Donor/Grantor Amount
Cash Incentive under RA10699 National Government 10.000,000
Cash Donation Private individuals (MVP and RSA) 20.000,000
Cash Donation President of the Philippines 3.000.000
Cash Donation City Government of Zamboanga 2.000,000
Condominium unit Private corporation 14,000,000
New car Private corporation 2,500,000
Cosmetics Private corporation 1,000,000
S1- The cash incentive paid by the national government is exempted from income tax
S2 - The cash donation by MVP and RSA are exclusions from gross income
S3 - The cash donation by the President is exempted from tantion
S4 - The cash donation by the City Government of Zamboanga is subject to donor's tax
Which is FALSE?
S2 (jas)
S1
S3
S4
Walang sagot nasa chegg
Wala sa CH
https://www.chegg.com/homework-help/questions-and-answers/commissioner-force-taxpayer-
produce-accounting-records-taxpayer-refuses-provide-audit-grou-q84757287
The Comissioner can impose tax on the digital service providers like Nettlix. Spotify and others.
True (jas)
False
Wala sa chegg wala sa CH nasa bartleby
As the new Accountant, you were reviewing the payroll system of the company. You noticed
that supplementary compensation is mingled with regular compensation. Which should fortn of
regular compensation?
Profit-sharing
Fixed transportation allowance of Php 50.00 per day * jas
Commission of 5% based on collections
Overtime pay ranging from Php 1,000 to Php 10,000
Walang sagot sa chegg wala sa CH
With the intention of limiting contact by taxpayers when dealing with the BR and at the same
time save time and money, the Bureau allowed on-line filing of returns and other reports. This is
in keeping with:
Fiscal Adequacy
Theoretical Justice
Administrative Feasibility (from ch
Uniformity in Taxation
Nasa chegg) https://www.chegg.com/homework-help/questions-and-answers/commissioner-

Who are considered self-employed?
S1 - Nicanor who is a plumber whose clients are corporations
S2 - Nicanor who is engaged by the Office of the Governor of a province under Job Order
Contract
S3 - Nicanor who is a social media influencer
S2
All are self-employed (jas)
S3
S1
General professional partnerships (GPP) are exempted from taxation because:
S1: Partners are liable in their own capacity
S2: GPP is a pass-through entity only
S3: GPP is not a corporation
Which is false?
S2
S3
None are false
S1
Wala sa ch
trackid=72e7de89fcc4&strackid=93cc93d4817d
Income of on-line sellers are generally taxable.
True
False
The BIR issue Revenue Memorandum Circular No. 97-2021 inre: Taxation of Any Income
Received by Social Media Influencers. Which is FALSE?
Social Media Influencers' income are generally subject to income and business taxes
If Social Media Influencer's income has been subjected to foreign taxes. the tax paid can be
credited against the tax due or deducted (from gross income) at the option of the taxpayer
Income of Social Media Influencers prior to issuance of RMC are not taxable
Social Media Influencers are generally required to register with the BIR if they earn. income
even if their objective is to merely vlog
Balance Sheet:
Asset - Php 500,000
Income Statement:
How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?
Php 600,000
Php 300.000
Php 200,000
Php 0
https://www.chegg.com/homework-help/questions-and-answers/nicanor-employee-abc-corp-
suffered-accident-work-died-following-information-made-available-q84757340?
trackid=ff29ce6a5141&strackid=a7ad2eff4f24
https://www.chegg.com/homework-help/questions-and-answers/nicanor-employee-abc-corp-
suffered-accident-work-died-following-information-made-available-q84757340?
trackid=beec5bfce2db&strackid=a5fec320137c
Nicanor, a businessman engaged in selling goods and services, reported gross sales of Php 1
Million and gross receipts of Php 2 Million. The company spent Php 150,000 for representation
expenses. How much is the non-deductible representation expense?
Php 25,000
Php 105,000
Php 150,000
Php 125,000 chegg

https://www.chegg.com/homework-help/questions-and-answers/nicanor-businessman-engaged-
selling-goods-services-reported-gross-sales-php-1-million-gros-q84758398
Nicanor was employed by ABC Corp. from April 1, 2020. He receives basic pay of Php 20,000
per month as compensation. During annualization of compensation in November, it was
determined that he will also receive the following:
• Additional compensation allowance - Php 5,000
• Cash gift - Php 5,000
• Christmas bonus - Php 5,000
• Loyalty award - Php 5.000
• Performance bonus/productivity incentive - Php 10,000
How much is the 13th month pay?
Php 45,000
Php 0
Php 15,000
Php 20,000
https://www.chegg.com/homework-help/questions-and-answers/nicanor-employed-abc-corp-
april-1-2020-receives-basic-pay-php-20-000-per-month-compensatio-q84757318
Expenses:
Depreciation expense – Php 200,000

How much is the total allowable deduction if the taxpayer is a resident citizen?
Php 1,590,000
Php 1,570,000
Php 1,500,000
Php 7,590,000 chegg
https://www.chegg.com/homework-help/questions-and-answers/taxpayer-made-available-
following-financial-information-gross-receipts-php-10-000-000-cost-q84758381
The process of reducing the allowable deduction of interest expense by a certain percentage is
called?
Tax Minimization
Tax Limitation
Tax Avoidance
Tax arbitrage
Wala sagot yung nasa chegg walang nakalagay na sagot sa CH
(nasa chegg https://www.chegg.com/homework-help/questions-and-answers/commissioner-

Shares of stocks not listed in stock exchange

Stockholders Equity - Php 2 Million
Compute the taxable income.
Php 1,500,000
Php 2,500,000
Php 1,800,000
Php 1,600,000
Compute the total final tax withheld on Nicanor’s passive income.
Php 60,000
Php 50,000
Php 40,000
Php 30,000
Balance Sheet:
Asset - Php 500,000
Liability - Php 100.000
Stockholders' Equity - Php 400.000
Income Statement:
How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?
Php 70,000
Php 1,500,000
Php 1,800,000 chegg
Php 1,200,000
If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged
in business consultancy service, the partnership is:
A general professional partnership
Is not allowed by law
Is exempted from taxation as the partners are the ones liable for the tax
Taxable as a corporation
A taxpayer earned the following incomes (gross amounts) In 2.2. (Assume source is Ph ils
unless stated)
Dividends from ABC Corp. a domestic corp – 1,000,000
Dividends from XYZ Corp. a foreign corp. (dominant incorne is abroad) - Php 1,000,000
Interest income from long.term investments (eh year, - PhP 1,000,000
Interest income from short-term deposits - Php 1,000,000
Raffle Prize (car) - Php 1,000,000
Royalty - Php 1,000,000
Assuming tax treaty rate is 10%
Compute the ordinary/active income if taxpayer is a resident citizen:
Php 6,000,000
Php 3,000,000
Php 2,000,000 **
Php 1,000,000
A taxpayer earned the following incomes
Dividends from ABC Corp. a domestic corp - Php 1,000,000
Dividends from XYZ Corp. a foreign corp (dominant income is abroad) - Php 1.000.000
Interest income from long-term investments (6th year) - Php 1,000,000
Interest income from short-term deposits - Php 1,000,000
Raffle Prize (car) - Php 1,000,000
Royalty - Php 1,000.000
Assuming tax treaty rate is 10%

Compute the ordinary/active income if taxpayer is a domestic corporation:
Php 3,000,000
Php 5,000,000 chegg****
Php 6,000,000
Php 4,000,000
https://www.chegg.com/homework-help/questions-and-answers/nicanor-employed-abc-corp-
april-1-2020-receives-basic-pay-php-20-000-per-month-compensatio-q84757318
If ABC Corp., a domestic corporation, registered and commenced operations in 2019, the MCIT
shall apply in:
2021
2024
2023
2022
Nicanor was employed by ABC Corp. from April 1, 2020. He receives basic pay of Php 20,000
per month as compensation. During annualization of compensation in November, it was
determined that he will also receive the following:
• Additional compensation allowance - Php 5,000
• Cash gift - Php 5.000
• Christmas bonus - Php 5,000
• Loyalty award - Php 5,000
• Performance bonus/productivity incentive - Php 10.000

How much is the 13th month pay?
Php 0
Php 15,000
Php 45,000 chegg
Php 20,000

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Yellow sure

Green not sure

Turquoise wag pansinin

Asset – Php 500,000

Liability – Php 100,000

Stockholders’ Equity – Php 400,000

Gross sales – Php 5,000,000

Cost of Sales – Php 4,000,000

Operating Expenses – Php 500,000,000

How much is the income tax due under CREATE Law?

Php 125,000,000 vero

Liability – Php 100,000

Stockholders’ Equity – Php 400,000

Gross sales – Php 100,000,000

Cost of Sales – Php 60,000,000

Operating Expenses – Php 30,000,000

Php 400,000 chegg

E since ang computation ng RCIT dyan is:

100M - 60M = 40 M gross income

40 M - 30 M OPEX = 10 M taxable income

10 M x 25% = 2.5 M tax payable

Tapos ang MCIT is 40M x 1% =400k

Mas mataas ang RCIT, kaya di ka magbabayad ng MCIT

So meaning walang excess MCIT kang irerecord kaya nilagay 0

Basic salary Php 600,000.00

13th month pay and other benefits 100,000.00

Separation Pay 500,000.00

Gross compensation income Php 1,300,000.00

Question: How much is the total exclusions from gross income?

Php 590,000 kung exclusion yung separation pay ***** vero

Php 90,000 kung inclusion yung separation pay

Gross sales - Php 1,500,000

Cost of sales - Php 500,000

Gross Profit - Php 1,000,000

Depreciation - Php 100,000

Rent Expense - Php 100,000

Salaries and wages - Php 100,000

Utilities Expense - Php 100,000

Cash Prizes - Php 100,000

Dividends from ABC Corp. - Php 100,000

Interest income from bank deposits - Php 100,000

Rental income - Php 1,000,000

Appraiser's value - Php 12 Million

Fair market value at time of his father's death - Php 8 Million

Shares of stocks not listed in stock exchange:

Audited Financial Statements of the company disclosed the following:

Balance Sheet: Asset - Php 5 Million

Liability - Php 3 Million

Stockholders' Equity - Php 2 Million

Income Statement: Revenue - Php 2 Million

Cost and Expense - Php 1 Million

Net Income - Php 1 Million

Additional information: Outstanding shares of stocks is 10,000

Php 480,000 vero

Fair market value at time of his father's death - Php 8 Million

Shares of stocks not listed in stock exchange:

Audited Financial Statements of the company disclosed the following:

Balance Sheet: Asset - Php 5 Million

Liability - Php 3 Million

Stockholders' Equity - Php 2 Million

Income Statement: Revenue - Php 2 Million

Cost and Expense - Php 1 Million

Net Income - Php 1 Million

Additional information: Outstanding shares of stocks is 10,000