Lady sells real property in the course of its business. During the last quarter of 2018, it had sold a parcel of land under the following terms (VAT inclusive): Total contract price P1,120,000 Down payment, 10/05/2018 112,000 1st installment (12/31/2018) 112,000 2nd installment (2/1/2019) 56,000   How much is the output vat in the last quarter of 2018?

Q: Greenwell Farm Equipment sells a tractor to Farmer for $120,000 on January 1, 2025. The tractor is…

A: The objective of this question is to calculate the total interest revenue that Greenwell Farm…

Q: On January 1, 2024. Byner Company purchased a used tractor. Byner paid 55,000 down and signed a…

A: The question is related to Acquisition Journal Entry of Tractor. The details are given as under Down…

Q: Use the following to answer the next 2 questions: The following refers to a purchase of a machine by…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…

A: Step 1: 1. Compute the amount at which the cost of the building should be recorded as follows:

Q: Bebe Co. purchased equipment with an invoice price of 1,680,000 on March 5, 2021. How much would be…

A: Under the Tax Code, the amount of input tax on imported or purchased capital goods which will be…

Q: On June 30, 2021, Casio Sony Company sold a property carried in inventory at a cost of P1,894,200…

A:

Q: On September 1, 2022, Jones Manufacturing purchase equipment from CAT. Jones agreed to pay $25,000…

A: Lets understand the basics. When asset is purchased and amount if going to be paid in the more than…

Q: On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is…

A: Present value of future payment can be calculated by applying the appropriate rate of interest or…

Q: To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants…

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in…

Q: On December 31, 2022, at what amount should the company report as the liability for this land?  On…

A: The original question provides a scenario where ABC Company buys three hectares of land for P800,000…

Q: During August 5, 2020, Hiro marketing sold an item worth P 500,000 for P 750,000. The required down…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: Chicago Heights company has 2 year contract to construct a warehouse. The contract value is 2949 and…

A:

Q: ow much should be shown in FIVE's 2021 income statement as gross rental income?  ₱ 60,000       ₱ -…

A: There are two type of leases which are, (1) Operating lease (2) Financial lease  Operating lease is…

Q: Celestial Holdings Co. began constructing a condominium on January 1, 2017 for a contract price of…

A: Computation of Gross Profit/Loss Realized in 2019: Gross Profit Realized in 2019= 425000

Q: Triple Take Construction Co. began construction of a project in 2017 for a contract price of…

A: The question is based on the concept of Accounting Standard on Construction contracts.

Q: During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900…

A: Answer with explanation are as follows.

Q: Shiba Company leased an office to Cate Company for a five- year term beginning January 1, 2020.…

A: Rent for first year = 800,000 Lease term = 5 years  Rent for remaining year = 1,250,000 Lease…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Solution: Capitalized cost of machine = Cash equivalent price of machine + Installation cost

Q: On 1 July 2020, Sharp Ltd purchased a debenture in Soft Ltd with a 5 year term for $20.000. The…

A: Calculation of effective rate of interest:- Interest annually=25000*3%=$750 Present value of cash…

Q: On April 1, 2020, Dei Delivery Service issued a ₱10,800,000 non-interest bearing note due March 31,…

A: Cash Price of Land = P8,339,760 Non interest bearing note = P10,800,000 Period of note = 3 Years

Q: On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West…

A: If payments terms on acquisition of property plant and equipment are beyond the normal credit terms…

Q: okkie Corporation had the following receipts from its leasing operations in 2020: Business Property…

A: In the given question, the amount given represents the receipts during the year, which means that…

Q: On January 1, 2020, Mya & Co, sold a machinery and immediately leases it back for a period of 4…

A: An agreement of contract that is prepared to transfer the right to use the resources for a…

Q: How much is the Gross Profit/Loss Realized in 2019?

A: Gross Profit realized in 2019 (end of the contract)= Revenue - Cost incurred till date

Q: What is the contract revenue for 2020? 2. What amount should be reported as deferred contract…

A: Formula: Deferred contract revenue on December 31, 2020 = Sales revenue - Contract revenue

Q: On January 1, 2020, Pam Company purchased an equipment for P3,000,000 cash for the purpose of…

A: An agreement of contract that is prepared to transfer the right to use the resources for a…

Q: Big Construction Company signs a contract on 1 July 2019, agreeing to build a warehouse for Buyer…

A:

Q: FDN Trading is renting out a portion of its building. On July 1, 2022, it received a one-year…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: On 1st July 2020 Al Khareef flour mills bought two wheat grinding machines for RO 18000. The whole…

A: Total Current Liabilities on 01-July-2020 = RO 18000   Total Liabilities Paid = Total installments…

Q: On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following…

A: Journal- A journal keeps track of all of an organization's business transactions. A company may…

Q: Brainy Company started the construction of a building for a customer at a fixed contract price of…

A: Hi, as you have posted multiple sub parts but as per the Bartleby policy we are able to solve the…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.