Permission to Dance Company completed the following transactions in the year to December 31, 2021: Transaction 1: Sold a car for P9,250 to the uncle of Permission to Dance 's finance director. Transaction 2: Sold goods to the value of P12,400 to Butter, a company owned by the daughter of Permission to Dance 's managing director. Butter has no other connection with Permission to Dance. Which transactions, if any, require disclosure in the financial statements of Permission to Dance under PAS 24 Related Party Disclosures? A. Transaction 2 only B. Neither transaction C. Both transactions D. Transaction 1 only

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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.