Andy donated the following properties on October 31, 2021:Car—recently purchased for P800,000; fair market value at the time of donation P700,000.10,000 preferred shares, traded in the stocks exchange, par value, P20.00/share; mean between the highest and lowest quotation price, P15.00/share.5,000 ordinary shares, not traded in the stocks exchange, par value, P5.00/share; book value P6.00/share; fair market value, P4.00/share.10,000 preferred shares, not traded in the stocks exchange, par value, P10.00/share: book value, P15.00/shareHow much should be reported as gross gift?

The donor's tax is calculated on the basis of the gifts that has been donated either to the…

Answered: Andy donated the following properties…

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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Andy donated the following properties on October 31, 2021:

Car—recently purchased for P800,000; fair market value at the time of donation P700,000.
10,000 preferred shares, traded in the stocks exchange, par value, P20.00/share; mean between the highest and lowest quotation price, P15.00/share.
5,000 ordinary shares, not traded in the stocks exchange, par value, P5.00/share; book value P6.00/share; fair market value, P4.00/share.
10,000 preferred shares, not traded in the stocks exchange, par value, P10.00/share: book value, P15.00/share

How much should be reported as gross gift?

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