Jackie sold to Zhakie a parcel of land classified as a capital asset located in the province of Tarlac for P6,000,000 on six equal semiannual installments of P1,000,000 each. The first installment will be paid on June 30, 2021, the second installment six months after, and so on, until the final installment on December 31, 2023.   Can Jackie declare his income on installment? a. Yes. The initial payments are not at least 25%. The initial payments are only 17% of the selling price. b. No. The initial payments exceeded 25%. The initial payments are 33% of the selling price. c. Yes. The initial payments did not exceed 25%. The initial payments are only 17% of the selling price. d. No. The initial payments are at least 25%. The initial payments are 33% of the selling price.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 32P
icon
Related questions
Question
Jackie sold to Zhakie a parcel of land classified as a capital asset located in the province of Tarlac for P6,000,000 on six equal semiannual installments of P1,000,000 each. The first installment will be paid on June 30, 2021, the second installment six months after, and so on, until the final installment on December 31, 2023.
 
Can Jackie declare his income on installment?

a. Yes. The initial payments are not at least 25%. The initial payments are only 17% of the selling price.
b. No. The initial payments exceeded 25%. The initial payments are 33% of the selling price.
c. Yes. The initial payments did not exceed 25%. The initial payments are only 17% of the selling price.
d. No. The initial payments are at least 25%. The initial payments are 33% of the selling price.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Computation of Taxable Income
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage