Answered: ABC Corp., a Non-Resident Foreign…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Corp., a Non-Resident Foreign Corporation (NRFC) bought 10,000 (PV Php 100) shares of stocks of XYZ Corp., a Domestic Corporation (DC) in the amount Php 1 Million in 2010. On September 12, 2021, ABC Corp. sold the shares of stock to DEF Corp., a Domestic Corporation for Php 2 Million.

how much is the capital gains tax, your answer should be?

Group of answer choices

Php 250,000

Php 150,000

Php 600,000

Php 300,000

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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