Owner, Juan invested an initial capital amounting P50,000 in order to put up his Clean company. During the first year of operations (2016), the company had a loss of P25,000. Because of this, Juan invested additional capital amounting to P50,000 in 2017. In the second year (2017), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Prepare the Statement of Changes in Equity for the year 2017.

Q: In 2014, the Edlins borrowed money to purchase stocks and taxable corporate bonds. During 2018, the…

A: The amount of interest expense that can be deducted on Schedule A will be lower of Income earned…

Q: A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share.…

A: A mutual fund is a type of financial vehicle made up of a pool of money collected from many…

Q: Square one invitations has its head office in downtown designer Saskatchewan the employees at this…

A: Employers can provide qualified parking benefits to their employees as a tax-free fringe benefit.…

Q: Tammy bought 100 shares of stock on January 30, 2021 when the share price was $20.  She sold the…

A: The objective of this question is to calculate the gain or loss from the stock transaction and…

Q: Can A recognize the $25,000 loss in 2016? How much loss will A recognize on the IBM calls in 2017?…

A: Here, in the example, A has made loss on two counts. The 1st loss is incurred when the shares…

Q: Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2013. On December…

A: A recognized loss is a loss that has been acknowledged and recorded in an entity's financial…

Q: In June 2022, Wild Company had excess cash that would not be needed until March 1, 2022. Management…

A: Unrealized profit is the part of profit which is not realized till the end of the accounting year.…

Q: 1. Bill owns 55% of the outstanding stock of Gates Corporation. During 2015, Gates sold a machine to…

A: Question 1. Answer : Explanation:Gates corporation cannot claim any gain or loss in the tax returns…

Q: Paul Bunyan is the owner of noncumulative 8 percent preferred stock in the Broadview Corporation,…

A: Preferred stock makes the holders stockholders of the company. These are also known as preference…

Q: Twist Corp. had no short-term investments prior to year 2017. It had the following transactions…

A: Note: Since the fair values of investments are given in the question they are assumed to be:…

Q: ABC Corporation (an S Corporation) had an ordinary loss of $365,000 for 2017 (which has 365 days in…

A: The question is based on the concept of Partnership Accounting.

Q: Q1 (i).Two sisters formed a corporation on 1 January 2008, each of them investing Rs. 10,000 and…

A: Net income is the difference between total revenues generated and total expense incurred during the…

Q: What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, and Net Capital Gains (LO…

A: Definition of Short term capital Gain: If the Asset sold for profit having holding period of less…

Q: On October 30, 2015, Tess bought 500 shares of ACTS stock for 640 pesos per share. On November 15,…

A: Dividend is an additional income that forms part of the total gain of the investor. Total gain on…

Q: What is Tim’s recognized loss for 2017? Explain your Answer.

A: Given information is: On November 03, 2017, Tim sold 1,000 shares of Citigroup stock (adjusted basis…

Q: The following transactions relate to Brown Company’s long-term investments. Brown did not own any…

A: 09.09.2019, Purchased 1000 shares = $80000 cash Journal entry will be Investments Packard common…

Q: Ahmed withdrew 10,000 dinars for the purpose of paying personal expenses to him. This will lead to…

A: Withdrawal of money from the business for personal expenses is called drawings.

Q: What is Danielson's taxable gain after the exclusion?

A: The Qualified Small Business Stock (QSBS) exclusion is a provision allowing eligible investors to…

Q: John Reardon purchased 100 shares of Tomco Corporation in December 2019, at a total cost of $1.732.…

A: Here,Number of shares purchased = 100 sharesTotal cost of purchase = $1,732Number of months held =…

Q: Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business…

A: For both individuals and businesses, taxable income is essential because it establishes the amount…

Q: Umair sold some equipments he used in his business on August 29, 2018, what originally purchased for…

A: Information Provided: Purchase price = $65,000 Depreciation = $17,249 Equipment sold (assumption of…

Q: Mary purchased 1,000 shares of Lucky Boots for $500 per share in 2010. Since then, Lucky Boots has…

A: Number of shares purchased = 1000 Price per share = $ 500 Value of investment = 500*1000 = $ 500,000…

Q: Cryptocurrency Lisa converted cryptocurrency into $27,200 Australian dollars in October 2019. To…

A: The capital gain is a type of profit obtained by selling the held asset for more than its value at…

Q: At the beginning of 2016, Pioneer Products’ ownership interest in the common stock of LLB Co.…

A:

Q: Gabriela has the following income for the quarter

A: As per the provisions of Burau of Internal Revenue , Phillipines , quarterly…

Q: Sam a partner in ST Partnership, is entitled to 40% of the profits and losses. During 2011, Sam…

A: Calculation of Sam share of profit in amount Sam share of Profit and loss = 40%  CALCULATION…

Q: LO.8 During the year, Tamara had capital transactions resulting in gains (losses) as follows: Sold…

A: A loss caused by the decrease in value of a capital asset, such as an investment or a piece of real…

Q: 1. In August of 2017, Bill bought a Chevrolet Tahoe (heavy SUV) for $72,400 to be used 80 percent in…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On February 4, 2017, Jonathon Cash bought 1,000 shares of Country Corporation stock for $6,800. On…

A: When a security is sold after a holding for a time of 12 months, any profit or loss on sale the…

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: Tammy bought 100 shares of stock on January 30, 2021 when the share price was $20.  She sold the…

A: The objective of this question is to calculate the gain or loss from the stock transaction and…

Q: During the year, Tamara had capital transactions resulting in gains (losses) as follows: Sold stock…

A: Both short- and long-term capital gains may be countered by a short-term capital loss. Such a loss…

Q: The Trump Companies, Inc., has ownership interests in several public companies. At the beginning of…

A: Calculate the amount of equity investment.

Q: Marty performed the following transactions this year: He sold shares of Yellow Corp. and realized a…

A: The question has asked to compute the net impact of Marty's transactions.   Other comprehensive…

Q: Felix owns 40% of Unger and at January 1 2022 has a balance in its investment account of 50,000. For…

A: The idea of the question is how an investor's ownership stake in a firm impacts the balance of their…

Q: Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December…

A: Ordinary or statutory income refers to the form of any type of income or basic income which is…

Q: B sold shares of a qualified small business corporation (QSBC) in the current year realizing a…

A: To determine B's maximum capital gains deduction and L's federal donation tax credit, let's go…

Q: Nifty Cleaners Inc., a CCPC that uses a December 31 taxation year, began carrying on the business of…

A: Introduction Net income is a firm's corporate competitiveness once all costs and expenses are…

Q: Isaiah purchased shares of ABC stock as follows: 50 shares for $1,550 in 2013. 100 shares for $2,500…

A: Capital gain is the increase in asset when the selling price 1is more than the price of purchase. It…

Q: 15. In 2016, Tom loaned his friend Janelle $5,000 to invest in various stocks. Janelle signed a note…

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

Q: Cindy Black gave her spouse 200 common shares of Fly-By-Night Airways Ltd. that had cost her $10 per…

A: The default CRA rollover position for spousal transfers is that no capital gains or losses are…

Q: In 2013 due to some unknown reasons, he demolished the house and constructed house on the same lot.…

A: Capital gain is defined as the increase in the worth of the capital asset or profit earned through…

Q: Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business…

A: Step 1 The taxable income before the QBI deduction is $408,000.It is obtained by subtracting the…

Q: 1.(3)

A: From the question, we know that Gates Corporation sold a machine to Bill for $40,000. The machine…

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.