Ventura was on his way to deliver merchandise ordered by his customer when another driver lost

control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained

injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with

other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the

following:

Repair and replacement of truck parts P900,000

Total selling price of merchandise destroyed (at P1,000,000 cost) 1,700,000
Hospitalization and medical expenses for injuries sustained 300,000
Reimbursement for other expenses incurred in relation to the incident 250,000
Total P3,150,00
How much of the above is gross income of Mr. Ventura for taxation purposes?

a. P3,150,000

b. P1,950,000

c. P1,700,000

d. P700,000

Ventura was on his way to deliver merchandise ordered by his customer when another driver lost

control over his truck and rammed it against the truck of Mr. Ventura. As a result, Ventura sustained

injuries, his truck was severely damaged, and all the merchandise were destroyed. Negotiations with

other party went smoothly and Mr. Ventura was paid the total amount of P3,150,000 for the

following:

Repair and replacement of truck parts P900,000

Total selling price of merchandise destroyed (at P1,000,000 cost) 1,700,000
Hospitalization and medical expenses for injuries sustained 300,000
Reimbursement for other expenses incurred in relation to the incident 250,000
Total P3,150,00
How much is the total return capital?

a. P3,150,000

b. P2,450,000

c. P1,700,000

d. P1,450,000