1. How much is taxable income, if Mr. B opted for optional standard deduction? 2. If the real property is locatedd in the city, copmute the total local tax transfer tax (use the maximum rate) 3. How much is the total final taxes? Mr. B, purely engaged in business had the following for the given year:RevenueP800,000Cost of sales200,000Business expenses150,000Other (non-operating) business incomeInterest from bank deposit20,000Gain from Capital asset (holding period of 5 months)25,000Capital loss - Real property located in the Philippines (Cost100,000P1,000,000); Appraisal value P5,000,000Capital gain - shares of stock sold directly to buyer1,000,000Capital gain - shares of stock sold thru PSE (not meet the minimum1,000,000public ownership)

Property tax is the tax that is charged on the property annually based on the market value of the…

Mr. B, purely engaged in business had the following for the given year: Revenue Cost of sales Business expenses Other (non-operating) business income Interest from bank deposit Gain from Capital asset (holding period of 5 months) Capital loss Real property located in the Philippines (Cost P1,000,000); Appraisal value P5,000,000 - Capital gain shares of stock sold directly to buyer Capital gain shares of stock sold thru PSE (not meet the minimum public ownership) - P800,000 200,000 150,000 20,000 25,000 100,000 1,000,000 1,000,000

Mr. B, purely engaged in business had the following for the given year: Revenue Cost of sales Business expenses Other (non-operating) business income Interest from bank deposit Gain from Capital asset (holding period of 5 months) Capital loss Real property located in the Philippines (Cost P1,000,000); Appraisal value P5,000,000 - Capital gain shares of stock sold directly to buyer Capital gain shares of stock sold thru PSE (not meet the minimum public ownership) - P800,000 200,000 150,000 20,000 25,000 100,000 1,000,000 1,000,000

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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