Grace sold directly to a buyer her domestic shares with fair market value of P400,000 for P300,000. She acquired the stocks at a cost of P150,000. Compute the capital gains tax. P7,500 P9,925 P15,000 22,500

Grace sold directly to a buyer her domestic shares with fair market value of P400,000 for P300,000. She acquired the stocks at a cost of P150,000. Compute the capital gains tax. P7,500 P9,925 P15,000 22,500

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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Question

Grace sold directly to a buyer her domestic shares with fair market value of P400,000 for P300,000. She acquired the stocks at a cost of P150,000. Compute the capital gains tax.

P7,500

P9,925

P15,000

22,500

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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