1. ABC University is a duly-registered non-stock non-profit educational institution. For the taxable period, it reported total revenues of P15,000,000, total operating expenses of P2,500,000, and total administrative expenses of P1,000,000. For taxation purposes, how much is the deductible expense?

a. Zero

b. P1,000,000

c. P2,500,000

d. P3,500,000

2. ABC Corporation owns 70% of XYZ Corporation. XYZ Corporation owns 80% of WWW Corporation. ABC Corporation sold equipment to WWW Corporation at a loss of P150,000. How much should ABC claim as deductible loss?

a. P150,000

b. P105,000

c. P84,000

d. Zero

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