7. In addition to his business as construction materials dealer, Henlin has the following capital assets transaction in 2011: Capital Capital gain (loss) P 69,000 Date Date Selling Sold Selling Price Acquired P80,000 Expenses P 1,000 Asset Cost 3/15/2011 M. Benz Car 05/16/2011 400,000 Refrigerator 09/05/2011 6,000 12/05/2011 12,000 05/10/2008 P10,000 07/15/2009 02/09/2011 01/10/2011 Jewelry 350,000 20,000 30,000 5,000 1,000 Ford car 20,500 (8,500) The net capital gain of Henlin in 2011 is : a. P27.000 b. P76.500 c. P42.000 d. P26.500

Q: What is the Remaining Capital Value (RCV)?

A: Salvage value is defined as the remaining value of the fixed asset that is expected to be recovered…

Q: What are the different factors affecting the requirements of working capital? Enumerate.

A: Working Capital- It is the fund that is required by a company for managing its day -to-day working…

Q: How much is legal capital?

A: it's the nominal value of all the accumulative shares issued by the corporate. for example, if a…

Q: how changes in Working Capital affect Cashflow?

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

Q: What is the cost of capital rate in the question?

A: Cost of capital is the WACC of the project. WACC is equal to weighted average cost of capital. WACC…

Q: What is the notion of capitalization effects and how does it work

A: The notion of capitalization effects and how does it work will be explained:

Q: What is Financial Capital to you? Can you define financial capital and physical capital?

A: Capital Capital is referred to as anything through which the owner can confer benefit or value and…

Q: What are the ramifications of having Working Capital?

A: The Ramifications Of Having Working Capital Will Be Explained:

Q: What is the meaning of capital costs, how are they described, and how are they different from…

A: Capital costs are one-time expenses for the creation, improvement, or purchase of assets like…

Q: how does working capital management differ from capital budgeting and capital structure?

A: Working capital management is a business strategy that ensures a company's operations run smoothly…

Q: How do we get the weighted average cost of capital if not given in the question?

A:

Q: What are some of the factors that inform the cost of capital?

A: The cost of capital represents the return expected by providers of capital (both debt and equity) to…

Q: How does the Paid-in capital consist primarily of?

A: Share capital of the company means all funds raised by the company in exchange of shares.  Shares…

Q: What is the weighted average cost of capital?

A: The formula to compute weighted average cost of capital as follows:

Q: Define capital gain (loss)

A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…

Q: How did the term working capital originate?

A: Introduction: Working capital can be defined as the necessary financial resources needed by a firm…

Q: orking capital?What are types of worki

A: Working capital or net working capital is total current assets less total current liabilities as…

Q: discuss the advantages and disadvantages of using return on capital employed ?

A: We have to find the advantages and disadvantages of using return on capital employed (ROCE).

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: What is working capital? How does working capitalrelate to the operating cycle?

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: How can capital gains and losses be offset against each other?

A: Capital gains and losses refer to the financial gains or losses that result from the sale or…

Q: What is capitalization and what are its capabilities?

A: Capitalization may likewise state as the idea of changing over some thought into a business or…

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.