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Question 20 1 pts a statement Calauag Inc. owns 51% of the voting power of Quezon, Inc. Which is a correct regarding gains and losses between these two entities? Losses sustained by Calauag, Inc. on transactions with Quezon, Inc. are claimable as deductions, Losses sustained by Quezon, Inc. on transactions with Calauag, Inc. are claimable as deductions. Gains realized by either party from each other are exempt from income tax due to the underlying economic substance of their relationship. O Gains between Calauag and Quezon are subject to income tax. Question 21 1 pts Research and development cost that are not chargeable to capital account can be claimed as Deductible expense Deferred expense subject to amortization Both a and b Either a orb Question 18 1 pts Which of these is a partially deductible contribution? O Donation to the government for public purpose Donation to priority activities of the government O Donation to foreign institutions with treaty exemption O Donation to accredited charitable institutions D Question 19 1 pts expenses can be Which of the following items of entertainment, amusement and recreation, claimed as a deduction? Entertainment expenses paid to officials of the government Entertainment expenses not receipted in the name of the taxpayer. Entertainment expenses in excess of the limits of the law Entertainment expenses for potential and existing clients

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