Answered: 8. How much is the total Capital Gains…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 2P

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Pls provide solution for numbers 8 and 9

A domestic corp in it’s fourth year of operation had:

Gross profit from sales 3,000,000

Expenses of operations 1,000,000

Quarterly Income taxes paid 500,000

Dividend from domestic corporation 200,000

Interest on bank deposit, MBTC 100,000

Gain on sale of Capital Assets:

Land and building outside the PH on a selling

price of 10,000,000 and cost of 5,000,000 5,000,000

Shares of stock of a domestic corp, traded

directly to the buyer on a selling price of

350,000 and cost of 100,000 250,000

How much is the total Capital Gains tax due?

How much is the income tax payable?

A domestic corp in it's fourth year of operation had:
Gross profit from sales
Expenses of operations
Quarterly Income taxes paid
Dividend from domestic corporation
Interest on bank deposit, MBTC
Gain on sale of Capital Assets:
Land and building outside the PH on a selling
price of 10,000,000 and cost of 5,000,000
Shares of stock of a domestic corp, traded
directly to the buyer on a selling price of
350,000 and cost of 100,000
3,000,000
1,000,000
500,000
200,000
100,000
5,000,000
250,000
7. How much is the Final Tax due?
А. 20,000
C. 40,000
В. 30,000
8. How much is the total Capital Gains tax due?
В. 37,500
D.0
A. 937,500
C. 600,000
D. 637,500
9. How much is the income tax payable?
А. 100,000
B. 1,600,000 C. 2,100,000 D. 60,000

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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