5. Mr. San Juanico, a realty dealer, had the following dealings in properties in 2019.Date ofDate of sale2/27/20193/14/20195/12/20197/3/2019Gain (Loss)P 400,000(100,000)80,000PropertiesHouse and lotAcquisition2/25/20148/12/20157/18/20191/14/2019Commercial lotPersonal carPersonal i-Phone(40,000)Compute the ordinary gain and the net capital gain subject to regular income tax.a. P480,000; POb. P400,000; P60,000c. P400,000; P80,000d. P300,000; P60,000

Capital gains or ordinary gains can be defined as the gain that arises from the sale of an asset or…

Answered: Compute the ordinary gain and the net…

Compute the ordinary gain and the net capital gain subject to regular income tax. a. P480,000; PO b. P400,000; P60,000 c. P400,000; P80,000 d. P300,000; P60,000

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

5. Mr. San Juanico, a realty dealer, had the following dealings in properties in 2019.
Date of
Date of sale
2/27/2019
3/14/2019
5/12/2019
7/3/2019
Gain (Loss)
P 400,000
(100,000)
80,000
Properties
House and lot
Acquisition
2/25/2014
8/12/2015
7/18/2019
1/14/2019
Commercial lot
Personal car
Personal i-Phone
(40,000)
Compute the ordinary gain and the net capital gain subject to regular income tax.
a. P480,000; PO
b. P400,000; P60,000
c. P400,000; P80,000
d. P300,000; P60,000

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