On August 31, 2022, Jackie agreed to purchase a parcel of land for P1,000,000 which the seller considered as a capital asset. The deed of absolute sale, however, was processed and dated on September 15, 2022. The land was valued at the following: Appraised value - 1,200,000 Zonal value - 900,000 Assessor's value - 800,000 Seller's tax basis - 500,000 How much is the capital gains tax?

Q: mdicate, by matching the relevant amounts, the original acquisition cost and enhancement expenditure…

A: When an amount of expenditure is incurred on an asset for the purpose to enhance the value of the…

Q: Momo Company has a single investment property which had originally cost P2,320,000 on January 1,…

A: Valuation of Investment Assets According to PAS 40 the valuation of the investment assets mainly…

Q: Remy Corp uses revaluation method for a class of land. The company purchased theland on 1 July 2018…

A: Cost Model - As per relevant Provisions of AASB 116, in this model, once an item of Property, Plant,…

Q: During the current year, TLI Corporation sells a tract of land for $90,000. The sale is made to…

A: In this question, we will determine the amount of loss or gain under different circumstances by…

Q: On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted…

A: The correct answer for the above mentioned answer is given in the following steps for your…

Q: Bev bought a small mom and pop grocery store. The sale was completed and Bev obtained ownership on…

A: Intangible Assets: An intangible asset is an asset that needs real substance. This is as opposed to…

Q: Determine her total cost recovery deduction.

A: $100000/$276,000 = 36.23%. Therefore, Audra must use the mid-quarter convention. As acquisitions…

Q: Form it instead assumes a $100,000 recourse loan on Vee’s land, what are the realized and recognized…

A: Realized value  were the value that is adjustable . For Frat $740000 For Van $ 660000 * Recognised…

Q: What is the minimum taxable capital gain to be reported in the current year.

A: CAPITAL ASSETS :- A capital asset is an item that you own for investment or personal purposes, such…

Q: What should be the carrying amount of the machine as of December 31, 2021? QUESTION 2: What is the…

A: The determination of the carrying amount of machine as of December 31,2021,the  deferred income…

Q: In March of Year 2, Mason contributed the following two properties, which he acquired in February of…

A: Adjusted base value describes the amount a person has invested in his property. Expenses incurred…

Q: $60,000 cash. After three years, FM sells the land for $200,000. How much income does FM recognize…

A: Income is the excess balance of revenues over expenses. It normally has a credit balance and is…

Q: Tom sold a capital property on December 31, 2021 for $300,000. $280,000 is payable on December 31,…

A: A capital gain seems to be an increase within the worth of a capital asset that is realized whenever…

Q: In 2022, Firm L purchased machinery costing $21,300 and elected to expense the entire cost under…

A: Section 179 allows business's to deduct the expense of qualified asset in the first year of use for…

Q: On May 15, 2020, Aldean Company, a calendar year taxpayer, purchased and placed into service a…

A: As per USA Income Tax Act i.e rules of depreciation by IRS ,  a…

Q: On March 31, 2024, Susquehanna Insurance purchased an office building for $12,000,000. Based on…

A: Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…

Q: 60751. Mr. XYZ, is negotiating to buy a parcel of property for his business. The seller of the…

A: Accounting principles are those rules, regulations and guidelines which will be used for the purpose…

Q: On March 1, 2021, Jackie Company purchased a parcel of commercial land located in the LGU of Santo…

A: Property, plant, and equipment (PP&E) are observable, durable assets that help a business make…

Q: A business sells real property for $950,000, with $600,000 of this amount being allocated to the…

A: A capital asset generates a gain when it is sold or otherwise disposed of for more money than it…

Q: In 2020, Gain Inc. purchased all of the assets of Cookie’s business. As part of this purchase, Gain…

A: Step 1 Amortization typically refers to the process of writing down the value of an intangible asset…

Q: Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The…

A: A recognized gain occurs when an investment or asset is sold for a price that is larger than what…

Q: Russell Corporation sold a parcel of land valued at $425,000. Its basis in the land was $297,500.…

A: A realised gain happens when an asset is traded for more than it cost to buy it. Gains that have…

Q: D sold capital property in the current year for net proceeds of $700,000. The property has an…

A: A capital asset is an item that you own for investment or personal purposes, such as stocks, bonds…

Q: will 47,720 nant not to compete 59,650 $345,970 v much of the $345,970 purchase price is for Section…

A: Answer: a.  As per Sec 197, Amortizing Intangible Assets, Intangiible assets include Goodwiill and…

Q: D sold capital property in the current year for net proceeds of $800,000. The property has an…

A: Capital gain means the gain arises from the transfer of the capital asset or increase in the price…

Q: On January 1, 2019, Coopers Industries bought a parcel of land for use in its operations by paying…

A: Introduction: Acquisition cost refers to the whole cost of buying an asset. Those costs include…

Q: M'Bappe transfers property to his son Leonel for $50,000 and such property at the time of transfer…

A: Cost foundation is largely described as the quantity that your house is worth from the point of view…

Q: On April 1, 2018, the Apex Corporation sold a parcel of underdeveloped land to the Applegate…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Calculate the amount of the stamp duty.

A: Given, Mr. Mutu purchased a development land = RM3,000,000 The agreement was signed on 29 April…

Q: On October 1, 2023, Verónica purchased a business. Of the purchase price, $66,000 is allocated to a…

A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Q: Mr. XYZ is negotiating to buy a parcel of property for his business. The seller of the property is…

A: The cost concept is a component of the GAPP in accounting. When a new asset is acquired, it should…

Q: On June 15, 2020, Allen sold land held for investment to Stan for $68,000 and an installment note of…

A: Under the installment method, the gain is recognized on the basis of the amount received in a year.…

Q: ob purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold…

A: Recognized gains and realized gains are two types of capital gains that indicate profits generated…

Q: a. Make all necessary journal for 2018 b. Make all necessary journal for 2019 and 2020 c. Determine…

A: As per Ind As 16 and IAS 16 Property plant and equipment -  After recognizing an asset, PPE whose…

Q: The Nelson Company has a taxation year end of December 31. On January 1 of the current year, the UCC…

A: CCA can be defined as maximum "Capital Cost Allowance Rate" for Class 8 property. The rate for the…

Q: Devon purchased a small business from Art on August 30, 2023, and paid the following amounts for the…

A: To determine the amount Devon can deduct on his 2023 tax return as Section 197 intangible…

Q: Coopers Industries purchased a block of land for use in its activities on January 1, 2019, by paying…

A: Appraisal prices are a subset of fine manipulate costs. Appraisal fees are paid through agencies as…

Q: On June 7, 2006, Hawk Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The gain arises when the selling price is greater than the purchase price of the asset. The revenue…

Q: Aqua Corporation purchases nonresidential real property on May 8, 2017, for $1,000,000.…

A: The companies recognize the ordinary income on the sale of the property as 20% of the excess of…

Q: investment property

A: We know that as per IAS 40 investment property can be valued at cost or Fair value . Investment…

Q: In 2021, Zhang recognized a $45,000 gain on the sale of Section 1231 property. Over the previous…

A: Introduction:- Calculation of Zhang's 2021 gain is characterized as follows under:- First find out…

Q: Boot Realty LLC receives cash of $75,000 upon completing a Section 1031 exchange. The cash received…

A: As per section 1031, investors in business properties can delay their taxable gain on property sold…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.