Bryan sold the following shares of stock of domestic corporations which he bought for investment purposes: Listed and Traded Not Listed and Traded Selling price Selling expenses P250,000 P143,680 3,680 12,000 118,000 Cost 80,000
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1. What is the
2. Assume Bryan is a dealer in securities, what is the capital gains tax for 2018 is?
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- Duringthe most recent year, Smither Travelers Co. bought 3,400 shares of German Corporation common stock at $37, 630 shares of British Corporation stock at $47.00, and 1,400 shares of MilanCorporation stock at $76. At December 31, Hoover’s Online reports German stock at $28.88,British at $49.00, and Milan at $69.25. Smither Travelers does not own more than 10% of theoutstanding stock in any of its investments.Requirements1. Determine the cost and the fair value of the long-term investment portfolio at December 31.2. Record Smither Travelers’ adjusting entry at December 31.3. What would Smither Travelers report on its income statement and balance sheet at year-endfor the information given? Ignore income taxesA decedent invested in the stocks of ABC Corporation by Purchasing stocks from an investor who sold the shares at P 125 per share. At the date of the decedent's death, the stocks were selling P 134 per share. What is the value to include in gross estate?Jacobson Company is considering an investment in the common stock of Biltrite Company. What are the accounting issues surrounding the recording of income in future periods if Jacobson purchases: a. 15% of Biltrite’s outstanding shares. b. 40% of Biltrite’s outstanding shares. c. 100% of Biltrite’s outstanding shares. d. 80% of Biltrite’s outstanding shares.
- Mr. ABC sold shares of resident foreign corporation directly to a buyer. The shaes were purchased for P200,000 and were sold at a net selling price of P420,000. Compute the capital gain tax. A. P 33.000B. P 22,000C. P 11,000D. zeroJamestown, Inc. is family-owned C-corporation whose stock is not traded on an exchange. Jamestown, Inc. stock is owned as follows: · Virginia 6,000 shares · Miles 8,000 shares · John 2,000 shares · Hope 4,000 shares · Z corporation 3,000 shares · VM partnership 2,000 shares · Total shares issued & outstanding 25,000 shares Virginia would like to redeem 3,000 shares of her stock. The stock has a fair market value of $500,000 and Virginia has a basis of $150/share for her stock. Here are the relationships Virginia has with the other shareholders of Jamestown, Inc.: · Miles is Virginia’s older brother · John is Virginia’s father · Hope is Virginia’s sister · Virginia owns 60% of the stock of Z corporation · Virginia has a partnership interest of 30% in VM partnership. a. How many shares of stock is Virginia deemed to own in Jamestown, Inc. b. Assume that Virginia is in the 37% tax bracket. How much tax would Virginia owe if the transaction above (i.e. the redemption of 3,000 share of…The income statements for HIM and HER for the year ended 31 December 2021 are shown below:HIM HERAR000 Crowns000Revenue 5 200 4 500Cost of sales (3 200) (3 000)Gross profit 2 000 1 500Distribution costs (800) (420)Administrative expenses (450) (450)Other income 80 -Profit before tax 830 630Income tax expenses (250) (180)Profit for the year 580 450Additional Information:1. HIM acquired 80% of the ordinary share capital of a foreign entity, HER, on 1 January 2021 for Crowns 13 984 000. At the date of acquisition the net assets of HER had a fair value of Crowns 15 800 000. The group policy is to value non-5controlling interest at fair value at the date of acquisition. The fair value of the non-controlling at the date of acquisition was Crowns 3 496 000. The fair value adjustments related to non-depreciable land. At 31 December 2021 the goodwill that arose on the acquisition of HER was impaired by 20%. Impairment is translated at the average rate and is charged to group administrative…
- Saleh sold the following stock in 2021. ABC, Incorporated, is a § 1202 qualified small business (QSB). Asset Cost Acquired Sale Price Sale Date ABC, Incorporated, 190 shares $ 141,550 01/10/2020 $ 181,260 04/30/2021 DEF, Incorporated, 140 shares 27,300 11/15/2017 21,000 02/28/2021 GHI, Incorporated, 70 shares 26,740 03/31/2020 23,800 08/30/2021 Required: Complete the chart. After netting, what is the total gain or loss? If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?Grace sold directly to a buyer her domestic shares with fair market value of P400,000 for P300,000. She acquired the stocks at a cost of P150,000. Compute the capital gains tax. P7,500 P9,925 P15,000 22,500Walton decided to issue additional new common stock. Mr. Adib Rahman, an individual investor purchased 100 shares of this stock from Munawar Associates, the underwriter. Would this transaction be a primary or a secondary market transaction? If Mr. Adib Rahman purchased previously outstanding Walton stock from another investor, then which financial market will this transaction be traded in?
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