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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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