Dimas owns a parcel of land worth P5,000,000 based on the fair valuation in 2020. He inherited from his father in 2018 when it was worth P3,000,000. His father purchased the property in 2007 for P1,000,000. If Dimas transfers this parcel of land to ABC Corporation, in exchange for shares of stock of said corporation worth P4,500,000. Dimas will have a taxable gain subject to regular income tax a. 1,500,000 b. 2,000,000 c. 0 d. 500,000
Dimas owns a parcel of land worth P5,000,000 based on the fair valuation in 2020. He inherited from his father in 2018 when it was worth P3,000,000. His father purchased the property in 2007 for P1,000,000. If Dimas transfers this parcel of land to ABC Corporation, in exchange for shares of stock of said corporation worth P4,500,000. Dimas will have a taxable gain subject to regular income tax a. 1,500,000 b. 2,000,000 c. 0 d. 500,000
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 82P
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Dimas owns a parcel of land worth P5,000,000 based on the fair valuation in
2020. He inherited from his father in 2018 when it was worth P3,000,000. His
father purchased the property in 2007 for P1,000,000. If Dimas transfers this
parcel of land to ABC Corporation, in exchange for shares of stock of said
corporation worth P4,500,000. Dimas will have a taxable gain subject to regular income tax
a. 1,500,000
b. 2,000,000
c. 0
d. 500,000
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Author:
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Publisher:
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