a citizen and resident of the Philippines, sold to Mr. B on July 1, 2019 a piece of land held as capital asset in the Philippines at a selling price of P5,000,000. The land had a cost of P2,500,000 and at the time of the sale had a fair market value of P6,000,000 and a mortgage of P2,000,000, which mortgage was assumed by Mr. B. The sale called for a payment of P300,000 on the date of sale and P200,000 on December 1, 2019. The balance shall be paid in installments of P500,000 each on December 1, 2020, December 1, 2021, December 1, 2022, December 1, 2021 and December 1, 2022. Mr. Baretto will pay the tax on the transaction in installments
a citizen and resident of the Philippines, sold to Mr. B on July 1, 2019 a piece of land held as capital asset in the Philippines at a selling price of P5,000,000. The land had a cost of P2,500,000 and at the time of the sale had a fair market value of P6,000,000 and a mortgage of P2,000,000, which mortgage was assumed by Mr. B. The sale called for a payment of P300,000 on the date of sale and P200,000 on December 1, 2019. The balance shall be paid in installments of P500,000 each on December 1, 2020, December 1, 2021, December 1, 2022, December 1, 2021 and December 1, 2022. Mr. Baretto will pay the tax on the transaction in installments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a citizen and resident of the Philippines, sold to Mr. B on July 1, 2019 a piece of land held as capital asset in the Philippines at a selling price of P5,000,000. The land had a cost of P2,500,000 and at the time of the sale had a fair market value of P6,000,000 and a mortgage of P2,000,000, which mortgage was assumed by Mr. B. The sale called for a payment of P300,000 on the date of sale and P200,000 on December 1, 2019. The balance shall be paid in installments of P500,000 each on December 1, 2020, December 1, 2021, December 1, 2022, December 1, 2021 and December 1, 2022. Mr. Baretto will pay the tax on the transaction in installments
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