Dimas owns a parcel of land worth P5,000,000 which he inherited from his father in 2018 when it was worth P3,000,000. His father purchased the property in 2007 for P1,000,000. If Dimas transfers this parcel of land to ABC Corporation, in exchange for shares of stock of said corporation worth P4,500,000. The aggregate basis of Dimas for all his ABC Corporation shares is ______. a. 3,500,000 b. 2,000,000 c. 1,000,000 d. 3,000,000
Dimas owns a parcel of land worth P5,000,000 which he inherited from his father in 2018 when it was worth P3,000,000. His father purchased the property in 2007 for P1,000,000. If Dimas transfers this parcel of land to ABC Corporation, in exchange for shares of stock of said corporation worth P4,500,000. The aggregate basis of Dimas for all his ABC Corporation shares is ______. a. 3,500,000 b. 2,000,000 c. 1,000,000 d. 3,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dimas owns a parcel of land worth P5,000,000 which he inherited from his
father in 2018 when it was worth P3,000,000. His father purchased the property
in 2007 for P1,000,000. If Dimas transfers this parcel of land to ABC
Corporation, in exchange for shares of stock of said corporation worth
P4,500,000. The aggregate basis of Dimas for all his ABC Corporation shares is
______.
a. 3,500,000
b. 2,000,000
c. 1,000,000
d. 3,000,000
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