Cruz was an employee of ABC Trading.

He was killed by a co-employee in one of their regular “inuman”

session. A case was filed by the heirs of Mr. Cruz against the co-employee. The court decided in favor of
the heirs and awarded them the following:

Description Amount
Compensatory damages P400,000
Moral damages 800,000
Exemplary damages 200,000
For attorney’s fees and cost of lawsuit 500,000
Consequential damages representing the loss
of the victim’s earning capacity 1,300,000
How much of the above is return of capital?

a. P3,200,000

b. P2,400,000

c. P2,200,000

d. P1,900,000

Ponce is an employee of XYZ Trading. For the month of June, Ponce received the following from XYZ:

Description Amount

Basic Salary P25,000

Overtime and holiday pay 2,500
Transportation and cellphone allowance 4,000
Reimbursement of office supplies XYZ 2,000
Reimbursement of utilities payment for XYZ 4,000
How much of the above is the gross income of Mr. Ponce?

a. P37,500

b. P33,500

c. P31,500

d. P27,500

Ponce is an employee of XYZ Trading. For the month of June, Ponce received the following from XYZ:

Description Amount

Basic Salary P25,000

Overtime and holiday pay 2,500
Transportation and cellphone allowance 4,000
Reimbursement of office supplies XYZ 2,000
Reimbursement of utilities payment for XYZ 4,000
How much is the return of capital?

a. P12,500

b. P10,000

c. P6,000

d. P4,000

Juan bought a certain piece of lot for P300,000. After 2 years, when its fair value was P500,000, he sold
it to his best friend for P320,000 in consideration of their friendship.

How much shall be subject to transfer (donor’s) tax?

a. P320,000

b. P200,000

c. P180,000

d. P20,000