B. Gulded Practice Activity Activity: Situation Your grandparents have decided to sell their real estate property in Labason, Zamboanga del Norte and they are planning to purchase an agriculture land in Titay, Zamboanga Sibugay. They posted an online advertisement for this. A week after, two offers came. Offer 1: P500,000 down payments plus P1,500,000 lump-sum payment 10 years from now. Offer 2: P500,000 down payments plus P12,500 per month for 10 years. Which among the two offers should your grandparents choose if the payments will have an interest of 12% compounded monthly? Find the fair market value of the two offers. Solution.
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- Jessica’s parents have decided to sell their ancestral house and they are planning to purchase a condominium unit. They posted an advertisement on the Internet. A week after, two offers came. Offer 1: Php 1,000,000 down payment plus Php 3,000,000 lump-sum payment 5 years from now. Offer 2: Php 1,000,000 down payment plus Php 50,000 per month for 5 years. Which among the two offers will be more advantageous for your parents if the payment will have an interest of 125 compounded monthly? Find the fair market value of the two offers.Your grandparents have decided to sell their real estate property in Valenzuela City and they are planning to purchase a condominium unit in Pasig City. They posted an online advertisement for this. A week after two offers came Offer 1:7500.000 down payment plus P1,500,000 lump-sum payment 10 years from now Offer 2: P500,000 down payment plus P12,500 per month for 10 years. Which among the two offers should your grandparents choose if the payment will have an interest of 12% compounded monthly? Find the fair market value of the two offers.Now that you are making the big bucks, your spouse has decided to venture into the rental property business. Your spouse purchases a rental house and after making some improvements it has a basis of $85,000. Your spouse places it in service as a calendar-year taxpayer during May and sells it in September, just over 4 years later. a. What is the MACRS-GDS property class?b. Determine the depreciation deduction during each of the years involved.c. Determine the unrecovered investment during each of the years involved.
- A time deposit has been made by a father at ₱1,000,000.00 for his daughter and she shall receive it at the date of his death. The man started this deposit at the 7th birthday of his daughter. He died when his daughter is at her 20th birthday. If money is worth 4% compounded semi-bi-quarterly, how much will her daughter received after his death? Ans: ₱1677688.92 B. The expansion plan of an engineering firm requires the purchase of parcel of land on which it will build a steam powerplant to supply the needs of a remote community, which they will need 10 years hence. The current cost of land is ₱1,000,000.00 and the building is ₱5,000,000. Since these are not needed immediately, the firm decides to defer the purchase of the land and the construction of the plant until they are needed. If value of land and cost of constructing the plant appreciates at the rates of 10% and 20% respectively, what will be the total cost of the land and the structure six…Juan, a resident citizen, sold the following capital assets in 2020:a. House and lot in Nasugbu, Batangas for Php10,000,000. It cost him Php2,000,000 in 2010.b. Rest house in Tagaytay, Cavite for Php20,000,000 which cost him Php5,000,000 in 2012.c. Condominium unit in Los Angeles, California for Php15,000,000. He acquired the said propertyin 2013 for USD100,000. In 2013, the USD to Philippine peso exchange rate is USD1 = Php42.How much capital gains tax must Juan pay for the sale of his properties?A. Php2,700,000B. Php1,380,000C. Php2,028,000D. Php1,800,000On September 30 of last year, Rex received some investment land from Holly as a gift. Holly’s adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What is the amount and character of Rex’s recognized gain (loss) if he sells the land on May 12 this year at the following prices? (Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) a. $32,000 b. $70,000 c. $45,000
- 16 Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of…Answer all the subparts a,b,c,d.if answered asap,it would be helpful When their grandad died, Ross and Lila (brother and sister), each received a 50% ownership of their grandad’s Mosman property in NSW. Ross and Lila immediately started renting it out. During the 2019/20 income year, they received a total of $110,000 in rental income. Because Ross is unemployed, they agree that Ross will receive a ‘salary’ of $35,000 for managing the property, plus that he will receive 75% of the remaining net income. Lila who earned salary payments of $165,000 from her work as a professor, will only receive 25% of the remaining net income. Lila also had deductions of $5,000 for her academic work. QUESTION: (a)Calculate the s90 PNI (b)Prepare a Distribution Statement (c)Calculate each partner’s assessable income (d)Calculate each partner’s taxable incomeTaxpayer T built a house using materials which cost T $100,000. Immediately upon completion in 2020, the house was appraised at $250,000 fair market value. T immediately gifted the house to T's son S. S lived in the house for 2 years and in 2022, S exchanged the house for shares of Exxon Mobil stock worth $200,000. S sold the Exxon stock for $210,000 cash in 2023. Which of the following is a correct statement? a. T will recognize a gain of $150,000 in 2020 b. S will recognize a gain of $10,000 in 2023 c. S will not recognize gain or loss upon the exchange in 2022 d. S will recognize a loss of $50,000 in 2022 e. None of a through d is correct
- Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of purchase - Php…Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of purchase - Php…Jagdeep sold his Indian restaurant “Maya no Dhaba” to Jasleen for the amount of$450,000. On top of that, Jasleen paid another $50,000 for Jagdeep to agreed that hewon’t open a new Indian restaurant in the radius of 10 Kms for the next five years.Discuss whether the $50,000 payment is considered as Ordinary Income? please put 3 references