Nicanor bought a car ten years ago costing Php 1,000,000.00. For income tax purposes, the car is full depreciated. Scrap value is 10% of cost as indicated in records. A person engaged in buying or selling valued the property at php 70,000. A buyer is willing to pay for php 50,000.00. What is the value to be used in computing estate tax? a. 0 b. 50,000 c. 100,000 d. 70,000

Nicanor bought a car ten years ago costing Php 1,000,000.00. For income tax purposes, the car is full depreciated. Scrap value is 10% of cost as indicated in records. A person engaged in buying or selling valued the property at php 70,000. A buyer is willing to pay for php 50,000.00. What is the value to be used in computing estate tax? a. 0 b. 50,000 c. 100,000 d. 70,000

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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Question

Nicanor bought a car ten years ago costing Php 1,000,000.00. For income tax purposes, the car is full depreciated. Scrap value is 10% of cost as indicated in records. A person engaged in buying or selling valued the property at php 70,000. A buyer is willing to pay for php 50,000.00. What is the value to be used in computing estate tax?

a. 0

b. 50,000

c. 100,000

d. 70,000

provide solution pls

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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