cürrent year, Zafril Company acquire an investment property for P48 million. In the acquisitio: Zafril made a 30% down payment and isued a 5-year, non interest-bearing note for the remainder. The equal amount P6,720,000 is payable at the end of each year. The prevailir market rate of interest for similar instrument is 12%. T complete the transaction, Zafril Company paid transactio costs amounting to P500,000. Round off present value factor to three decimal places. What is the correct cost of the investment property a acquisition date?

Q: can you also explain what part is a. b. and c. please

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A: The inventory valuation includes two methods named as FIFO (First in First Out) and LIFO (Last in…

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A:

Q: question 33

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A: Ledger posting. : When any transaction is made journal entry is passed, after that those entries are…

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A: The LIFO method is defined as one of the important methods of inventory calculation in which the…

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A: Net realizable value = Estimated Selling Price -  Cost of Completion and Disposal where, Cost of…

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A: Prepare an income statement.

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A: Stock beta = 1.38 Expected return = 13.6% Risk free rate = 4.7%

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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.