Mr. Antonio disposed his principal residence for P2M and immediately acquired a new one for P1.8M. The old residence cost Mr. Antonio P1M and had a fair market value of P2.5M on the date of sale. Compute the capital gains tax to be deposited in escrow

Mr. Antonio disposed his principal residence for P2M and immediately acquired a new one for P1.8M. The old residence cost Mr. Antonio P1M and had a fair market value of P2.5M on the date of sale. Compute the capital gains tax to be deposited in escrow

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

a.0
b.P60,000
c.P120,000
d.P150,000

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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