1. A grocery owner incurred the following losses for the taxable year:

Loss on sale of home theatre	P10,000
Loss on sale of real property considered as capital asset	80,000
Loss on inventories in warehouse due to typhoon	150,000

How much is the deductible loss?

a. Zero

b. P150,000

c. P230,000

d. P240,000

2. A business asset was totally destroyed by the recent typhoon. It had a carrying value of P400,000 and fair value of P350,000 at the time of loss. The same was replaced at a cost of P 900,000. How much is the deductible loss from the gross income?

a. P350,000

b. P400,000

c. P500,000

d. P900,000

3. Mr. Ron acquired machinery for use in his business. After a strong typhoon, the machinery suffered partial damage. The following data are made available:

Cost	P500,000
Accumulated depreciation	300,000
Restoration cost	250,000
Estimated remaining life	5 years

How much is the deductible loss?

a. P500,000

b. P300,000

c. P250,000

d. P200,000

e. Zero

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