Mr. Chan's employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when themarket price of the shares was $10. Mr. Chan exercised the share option in March this year when the market price ofthe shares was $15 each. He sold all the shares yesterday for $20 each. What is the share option gain to be included inthe assessable income? Question 41 Answer a. $50,000 b. $150,000 c. $200, 000 d. $100, 000

Basic Information Sale Consideration = $200,000Cost of Acquisition = $100,000

Answered: Mr. Chan's employer gave him a share…

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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X derived the following income in 2020: Business income of P400,000 Compensation income of P200,000 Interest income from 5/6 lending to clients: P150,000 Interest income from bank deposits in the amount of P25,000. Royalty income for the sale of books where he is the author: P120,000. Capital gain on sale of personal car in the amount of P20,000. Capital gain on the sale of stocks directly to buyer: P30,000. Ordinary gain on sale of old office furniture in the amount of P10,000. Dividend income from stocks of San Miguel Corporation: P60,000. Proceeds received from the life insurance of his deceased father: P1,000,000 what is the total income of X which is subject to regular tax?
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