On September 21, 2010, Piolo agreed to sell his only carabao to Sam and Sam agreed to pay the price of P25,000 if Sam will pass the October 2010 CPA Examination. The list of successful examinees was released on October 21, 2010 and Sam is one of those who passed the examination. As a result,   Piolo is entitled to the P25,000 price plus interest beginning September 21, 2010. Sam is entitled to the carabao and its fruits beginning September 21, 2010. Sam is entitled to the carabao beginning September 21, 2010 and to its fruits beginning October 21, 2010. Piolo shall deliver the fruits of the carabao and Sam shall pay the interest on the price beginning September 21, 2010

Q: Sunil is 64 years old. For many years he owned a $2 shop which he has operated in a regional…

A: As per Australian Tax Law. Assessable income-any amount earned would be regarded as ordinary income…

Q: a.  Rex uses the automatic mileage method. Compute his basis adjustments for depreciation for each…

A:

Q: On January 1, 2020, Scott’s employer gave him a City of Denver Bond and a City of Hong Kong (China)…

A: The total pay from an employer before taxes or other deductions is an individual's gross income,…

Q: Sally owns real property for which the annual property taxes are $19,280. She sells the property to…

A: Calculation of above requirement are as follows

Q: What is the total “For AGI” deductions? Paul Turner is single and has two children, Allen and Lee…

A: Alimony deductible refers to the allowances which are allowed for husband or wife by the order of…

Q: On January 5, 2022, Amin sells his principal residence with an adjusted basis of $270,000 for…

A: When a residential property is sold tax on the gain realized is paid. Any commission or legal fees…

Q: Shaun has a cousin named Lilly, who owns a successful cosmetics business and pays income tax at the…

A: i. Capital gain on sale of First painting   Sale Proceeds                     = £ 8,400 Less: fees…

Q: Sharon owns a fixed deferred annuity contract with a 7-year surrender period, which she purchased at…

A: Annuity is like a deal between the individual and the insurance company, The individual gives them a…

Q: Cindy works for Sky Manufacturers, a public corporation. In 2010, she was offered an option to…

A: NOTE ; As per BARTLEBY guidelines, when multiple sub parts of the question are given, then first…

Q: Read the following scenario and answer the question in 5–10 sentences. Becky purchases one percent…

A: All the companies which are listed on stock exchange has to buy or sell their securities through the…

Q: Xavier bought furniture and fixtures (7-year property) on September 15, 2021, for $1,055,000. He…

A: Depreciation is an expense a firm may charge on its assets to claim it as a deduction against the…

Q: Ernie owns a warehouse that is destroyed by fire on March 21, 2014. The warehouse, which had an…

A: Insurance is a contract between the insured and the insurer. There are two types of insurance…

Q: Melba purchases land from Adrian. Melba gives Adrian $600,600 in cash and agrees to pay Adrian an…

A: Cash payment = $600,600Next year payment = $900,900

Q: a new home in Houston. The realized gain on the second sale is $275,220. Do not round any division.

A: In this question, we have to find out the recognized gain on the second sale.

Q: Alex is a carpenter who purchased a vacant block of land in Sydney on 1 October 1980. On 1 September…

A: Profit on sale   totals on sale 1,400,000.00 less:cost of land (110,000.00) cost of…

Q: John bought 1,000 shares of Intel stock on October 18, 2018 for $30 per share plus a $750 commission…

A: The objective of the question is to calculate John's adjusted basis in the Intel stock, the amount…

Q: In 2010, Jeff received a nonqualified option to acqu

A: Exercise price is the price which is lower than the market price of the…

Q: Mr. Anthony orally agreed to sell his refrigerator for P10,000 to Ms. Johnson who made a partial…

A: A situation has been provided. We have to find out if the sale is valid and hence can be enforced.

Q: Will the action prosper? Explain.

A: The right of first refusal, known as a contractual clause that grants a party the opportunity to buy…

Q: In 2020, Juan entered into a contract to write a book. The publisher advanced Juan $50,000, which…

A: Marginal tax Rate: It is the  additional tax payable  for every additional dollar earned as income.…

Q: What is Sebastian's recomputed adjusted basis in the property?

A: Adjusted basis refers to the original cost of an asset adjusted for various factors such as…

Q: In 2020, Susan (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her…

A: Deductions on account of casualty losses such as theft are deductible if caused by federally…

Q: Katrina, age 58, rented (as a tenant) the house that was her principal residence from January 1,…

A: Calculation:

Q: Matt bought a motorcycle from Dean, promising in writing to pay Dean $200 per month for 10 months.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: using loss of $100,000 in 2020. Which of the following amounts represent crease to Peter's…

A: Income is a residual amount left after netting of net expenses incurred to earn that income. The net…

Q: Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a…

A: A recognized gain refers to the amount raised from the sale of investment or assets used in business…

Q: Agnes transfers a four-apartment investment condominium subject to a non-recourse mortgage to Brad.…

A: A 1031 exchange is an effective way to defer capital gains taxes on a replacement property when…

Q: Spiderman offered, in writing, to sell Black Widow a piece of land for $200 Spiderman signed the…

A: to ask if somebody would like something or to give somebody the chance to have something. When one…

Q: John bought $1,000 shares of intel stock on Oct 18,2016, for $30 per share plus $750 commission he…

A: Adjusted basis =Purchase price +expenses on purchase

Q: On July 1, 2020, Ben entered a litigation case with Yona over unauthorized use of Yona’s latest…

A: As per IAS 37, an entity shall create a provision if the economic outflow is probable in future due…

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.