MK collected P3,000,000 from the fire insurance company that insured his buliding which had a tax basis of P2,300,000 when the fire occurred. During the same period, he also collected P500,000 crop insurance proceeds pertaining to his crops destroyed by frost. Compute for the total item of gross income.

Taxpayer is a sole proprietor owner of a merchandising business. He sells an idle lot located in Baguio City at 10% above cost. Records show the cost of P1,000,000. Zonal value per BIR list is P1,200,000 and the value per local assessor's office is P800,000. Compute the capital gains tax: О а. Рб,000 O b. PP60,000 О с. Р72,000 O d. Not subject to capital gains tax

Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000.  What is the taxable income?

On January 2, 2018 Mr. B contracted a 1-year P100,000 loan from Metrobank for the purchase of computers. The equipment which had a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense for one (1) year amounted P15,000. In the same year, his bank deposit with PNB earned an interest income of P2,000. During the year, he incurred an interest expense on unpaid business tax of P600. The deductible interest expense of Mr. B in 2018 is - a. P14,240 c. P14,760 b. P13,600 d. P14,940

A self-employed taxpayer purchased a gold mine for $700,000 which is expected to produce 200,000 units of gold. During the current year, the taxpayer mined 140,000 units of gold and sold it for $3,700,000. If the taxpayer's net business income is $1,100,000 and the applicable percentage depletion for gold is 15%, what should the taxpayer take as deletion deducton？

Poly received a TV set from her employer Alfa Mart Company, a business entity engaged in the distribution of home appliances, in exchange for payment of her two-month salary amounting to Php. 50,000.00. The merchandise, with a prevailing market price of Php. 55,000, cost the company Php. 25,000.00. Determine Poly's taxable compensation income.

TPW, a calendar year taxpayer, sold land with a $549,000 tax basis for $845,000 in February. The purchaser paid $84,500 cash at closing and gave TPW an interest-bearing note for the $760,500 remaining price. In August, TPW received a $60,825 payment from the purchaser consisting of a $38,025 principal payment and a $22,800 interest payment. In the first year after the year of sale, TPW received payments totaling $116,650 from the purchaser. The total consisted of $76,050 principal payments and $40,600 interest payments. Required: For the first year after the year of sale, compute the difference between TPW’s book and tax income resulting from the installment sale method. Is this difference favorable or unfavorable? Using a 21 percent tax rate, determine the effect of the difference on the deferred tax asset or liability generated in the year of sale.

Aiden is married and has salary income of $80,000 and total itemized deductions is $30,000. During the year, he sold two investments resulting in a $5,000 long-term capital gain and a $15,000 short-term capital loss. He calculated his AGI to be $70,000 (80,000 -10,000) and his taxable income to be $40,000 (70,000-30,000). Based on the tax formula and the net capital loss rules, comment on whether or not the adjusted gross income and taxable income are correct. Explain and provide support for your position.

Christ owns a factory building that he has used in his business for many years. On 1/28/20, the factory was totally destroyed in a fire. Christ received $ 5,000,000 from his insurance company for this total loss. At the time of this loss, Christ had an adjusted basis in this factory of $ 2,000,000 ($ 3,000,000 original cost less $ 1,000,000 in accumulated straight-line tax depreciation). Christ replaced the factory at a cost of $ 4,800,000 in November of 2020. Calculate Christ’s 2020 realized gain of loss from the above How much gain or loss will Christ recognize for tax purposes in 2020? How much additional federal tax will Christ incur in 2020 assuming his marginal ordinary income tax rate is 37% and his net capital gain rate is 20%? What is Christ’s tax basis in the replacement factory building?

Bill received $100,000 in insurance proceeds to compensate him 3budiness equipment destroyed by a fire. The adjusted basis of the equipment was $80,000. Bill reinvested $95,000 of the insurance proceeds in replacement business equipment within the time allowed. He wants to defer gain to the maximum extent allowed. Bill must recognize how much gain? A. 2,500 B. 5,000 C. 25,000 D. 450,000