Multiple choice: Topic: Income TaxationWhich of the following gain is subject to capital gains tax? *Gain on sale of domestic bonds considered as capital asset.Gain on sale of real property considered as capital asset which is located in the Philippines.Gain on sale of foreign stocks not traded through the stock exchangeAll of the aboveBoth a and b only

Section 39 defines that a capital asset means all the properties which doesnt include the properties…

Answered: Multiple choice: Topic: Income…

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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Multiple choice:

Topic: Income Taxation

Which of the following gain is subject to capital gains tax? *

Gain on sale of domestic bonds considered as capital asset.
Gain on sale of real property considered as capital asset which is located in the Philippines.
Gain on sale of foreign stocks not traded through the stock exchange
All of the above
Both a and b only

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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