15. On December 15, 2023, Mr. Carino sold a 500 square meter residential condominium The unit was acquired in 2002 for sale, the fair market value of the property as shown in the real property declaration is P2,500,000 and the assessed value amounted to P450,000. The zonal value is P7,000 per square meter. The capital gains tax on the sale is- A. 150,000 B. 120,000 C. 180,000 D. 210,000 16. Using the same preceding data, the capital gains tax payable assuming Mr. Carino will utilize only P1,500,000 of the proceeds in acquiring a new residence is? A. 90,000 B. 105,000 C. 210,000 ta

15. On December 15, 2023, Mr. Carino sold a 500 square meter residential condominium The unit was acquired in 2002 for sale, the fair market value of the property as shown in the real property declaration is P2,500,000 and the assessed value amounted to P450,000. The zonal value is P7,000 per square meter. The capital gains tax on the sale is- A. 150,000 B. 120,000 C. 180,000 D. 210,000 16. Using the same preceding data, the capital gains tax payable assuming Mr. Carino will utilize only P1,500,000 of the proceeds in acquiring a new residence is? A. 90,000 B. 105,000 C. 210,000 ta

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 15MCQ

See similar textbooks

Similar questions

If Ivanhoe paid $20,000 to a real estate broker on January 1, 2025, as a fee for finding the lessor, what is the initial measuremen of the right-of-use asset? (Round answers to O decimal places, e.g. 5,275.) Right-of-use asset $ 94178
H6. A business sells real property for $950,000, with $600,000 of this amount being allocated to the building and the remaining $350,000 allocated to the land. The building, the only asset in its Class, had a capital cost of $800,000 and a UCC of $650,000. The adjusted cost base of the land was $250,000. What are the tax consequences of this disposition? A capital gain of $50,000 and a terminal loss of $50,000 © A capital gain of $100,000 and a capital loss of $50,000 C A capital gain of $50,000 and a terminal loss of nil © A capital gain of $100,000 and a terminal loss of $50,000 Please give accurate response Show proper step by step calculation
Kaino sold his principal residence located in Manila on January 5, 2018 for P8,000,000. The property was purchased in 2005 for P3,000,000. The current market values of the property at the time of sale were: Bank's mortgage value - P12,000,000Independent appraiser's value BIR -P10,000,000Commisioner's Zonql valuation- P9,000,000City Assessor's schedule of values -P6,000,000 What is the capital gains tax on the sale? a) P480,000 b) P540,000 c) P600,000 d) P720,000 16. If Kaino in the preceding number, within 6 months after the sale, purchases another residence for P8,000,000, what will be the capital gains tax on the sale and what would be the cost (basis) of the new residence for income tax purposes? a) P540,000, P8,000,000 b) PO; P6,000,000 c) P540,000; P9,000,000 d) PO; P3,000,000 17. Suppose Kaino, within the 18-month reglementary period, instead purchases a new principal residence at a cost of 10,000,000. What will be the capital gains tax on the sale and what would be the…
In 2020 a vat registered real estate dealer sold a residential lot for P1,919,500 to a vendee who intendsto erect his residential house thereon. The sale shall be:a. Subject to 12% vatb. Subject to 0% vatc. Vat exemptd. None of the foregoing
5.The Jones Corp. purchased an investment property on Jan 1, 2017 for a cost of P220,000. The property had a useful life of 40 years and at Dec 31, 2020 had a fair value of P300,000. On Dec 31, 2021 the property was sold for P290,000 incurring disposal costs of P10,000. Jones uses the cost model to account for investment properties. What is the gain or loss to be recognized in profit or loss for the year ended Dec 31, 2021 regarding the disposal of the property?
Anderson disposes a vacant lot for P3,000,000. The lot has an Assessor's fair value of P2,800,000, a zonal value of P3,200,000, and an appraisal value of P3,500,000. What is the capital gains tax? P 0 P180,000 P192,000 P210,000
Ben Company purchased an investment property on January 1, 2020 at a cost of P250.000. The property had a useful life of 20 years and at December 31, 2022, had a fair value of P280.000.On January 1, 2023, the property was sold for net proceeds of P290,000. Ben uses the cost model to account for investment property.What is the gain or loss to be recognized in profit or loss for the year ended December 31,2023 regarding the disposal of the property, according to IAS 40 Investment Property? A. P77,500 gain B. P67,500 gain . C. P30,000gain D. PI 0,000 gain
Kaye sold his residential house and lot located in Manila on January 5, 2018 for 8,000,000. The property was purchased in 2005 for 3,000,000. The current market value of the property at the time of sale was:BIR Commissioner’s zonal valuation 9,000,000City Assessor’s schedule of values 6,000,000What is the capital gains tax on the sale? 300,000 360,000 480,000 540,000
Garcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for P1,800,000. The old residence was acquired for P1,000,000 and had a fair market value of P2,500,000 on the date of sale. Compute the capital gains tax on the sale. * Zero 12,000 15,000 150,000
Among the properties included in the decedent’s gross estate is a four-story commercial building with a FMV at the time of decedent’s date at P15,000,000. During the settlement of the estate, the aforementioned property was destroyed by fire. The FMV at the time of the incident was P8,350,000. Assume that 60% of the building was destroyed and was not insured. The deductible loss will be? P9,000,000 P6,000,000 P0 P6,650,000
01. Martin owns land that is classified as PPE. The land has previously been valued at cost. The land will be revalued using the revaluation model to its fair value on December 31 (the company's year-end). Before revaluation, the land's carrying value was $100,000. The fair value is $125,000 as of December 31, 2021. What journal entry is required to record the revaluation? What entry would've been made if the fair value on December 31, 2022, is $90,000? 02. 1,000,000 of XYZ's no-par common shares were initially offered at a price of $13, Later, XYZ bought back 6,000 shares of these shares at $ 17 a share. XYZ is incorporated under the Canada business corporation Act and therefore retired these shares. Requirement Record the retirement of the shares. 03. ABC. declare a dividend of $100,000 and pays it all at once. Provide the journal entry needed to document the $100,000 dividend if: The dividend is paid in cash The dividend is paid in company stock (stock dividend)
On April 13, 2023, Swifty Ltd. purchased a small apartment building with eight suites. The building qualified as an investment property under IAS 40. At the time of purchase, six out of the eight suites were rented. Swifty paid the following items at the time of its acquisition of the apartment building (all items were paid in cash except for the building itself, for which Swifty took out a mortgage): Purchase price of building $4,050,000 Legal fees 7,720 Property transfer fees 24,500 Painting of empty apartments 5,390 Advertising for empty apartments 2,000 On April 14 the previous owner of the apartment building paid Swifty $13,000 for damage deposits from the existing tenants. On December 31, 2023, the apartment building had a fair value of $4,250,000. On December 31, 2024, it was determined that the apartment building had a fair value of $4,040,000. Assuming Swifty follows IFRS, prepare the journal entries required to record the above events. (Credit account titles are automatically…