Kris Inc. sold its vacant lot to Moca Corporation for P10,000,000, which it acquired at a cost of P5,000,000. The fair market value of the said property per tax declaration is P12,000,000, while its zonal value is P15,000,000. The tax applicable on the transaction is:.
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- Kris, Inc. sold its vacant lot to Moca Corp. for P 10,000,000 which it acquired at a cost of P 5,000,000. The fair market value of the said property per tax declaration is P 12,000,000, while its zonal value is P 15,000,000. How much is the income tax applicable on the transactions? P 1,500,000 P 900,000 P 720,000 P 600,000H6. A business sells real property for $950,000, with $600,000 of this amount being allocated to the building and the remaining $350,000 allocated to the land. The building, the only asset in its Class, had a capital cost of $800,000 and a UCC of $650,000. The adjusted cost base of the land was $250,000. What are the tax consequences of this disposition? A capital gain of $50,000 and a terminal loss of $50,000 © A capital gain of $100,000 and a capital loss of $50,000 C A capital gain of $50,000 and a terminal loss of nil © A capital gain of $100,000 and a terminal loss of $50,000 Please give accurate response Show proper step by step calculationAnderson disposes a vacant lot for P3,000,000. The lot has an Assessor's fair value of P2,800,000, a zonal value of P3,200,000, and an appraisal value of P3,500,000. What is the capital gains tax? P 0 P180,000 P192,000 P210,000
- (LO. 1, 2 Federal Taxation) On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2018 and 2019, respectively, Blue deducted $642 and $5,128 of cost recovery. These amounts were incorrect; Blue applied the wrong percentages (i.e., those for 39-year rather than 27.5-year assets). Blue should have taken $910 and $7,272 cost recover in 2018 and 2019, respectively. On January 1, 2020, the asset was sold for $180,000. Calculate the gain or loss on the sale of the asset for that year.Choose the correct. Baratheon Company purchases all of Tyrell Company for $450,000 in cash. On that date, the subsidiary has net assets with a $454,000 fair value but a $310,000 book value and tax basis. The tax rate is 40 percent. Neither company has reported any deferred income tax assets or liabilities. What amount of goodwill should be recognized on the date of the acquisition?a. $53,600b. $123,600c. $23,600d. $39,600(7) H Co acquires S Co for $1,040,000 when the balances of share capital and retained profits of S Co amount to respectively $450,000 and $360,000. S Co holds two properties which are depreciated over 10 years for both tax and accounting purposes, and will be recovered through use. The tax rate is 20%. The carrying amounts, fair values and tax bases of the net assets of S Co, and resulting temporary differences are shown below: All the timing differences are temporary differences. All the temporary differences are timing differences. If the differences between the carrying amount of an asset or liability and its tax base 2 Carrying Amount $ Fair Value $ Tax base $ Property 1 Property 2 Other net assets Total 320,000 390,000 400,000 420,000 90,000 90,000 810,000 900,000 300,000 450,000 90,000 840,000 According to the tax rules, the tax bases of the net assets of S Co are not changed when the net assets are acquired by H Co. What’s the amount of the goodwill? A.…
- ONLY SOLVE PART D And E Panther Corporation reported taxable income of $750,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Sam Panetto. The land’s fair market value was $100,000 and its tax and E&P basis to Panther was $167,000. Sam assumed a mortgage attached to the land of $20,000. The company had accumulated E&P of $1,000,000 at the beginning of the year. The federal tax rate is 21%. a. Compute Panther’s total taxable income and federal income tax. b. Compute Panther’s current E&P. c. Compute Panther’s accumulated E&P at the beginning of next year. d. What amount of dividend income does Sam report as a result of the distribution. e. What is Sam’s tax basis in the land he received from Tiger?(LO.2, 3 Federal Taxation) Orange Corporation acquired new office furniture on August 15, 2020, for $130,000. Orange does not elect immediate expensing under section 179. Orange claims any available additional first-year depreciation. Determine Orange’s cost recovery for 2020. How would your answer change if Orange decided to use $52,000 of bonus depreciation and use normal MACRS on the balance of the acquisition cost?1. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC’s identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC’s land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X: Carrying Amount Fair Value Cash and Receivables 4,000,000 4,000,000 Land 3,000,000 5,500,000…
- N1. Account 5. PURSUANT TO A COMPLETE LIQUIDATION IN THE CURRENT YEAR Z CORPORATION DISTRIBUTES TO MOE LAND (FMV $390,000, BASIS OF $425,000) THAT WAS PURCHASED SEVEN YEARS AGO AND HELD FOR INVESTMENT. THAT LAND IS SUBJECT TO A MORTGAGE OF $250,000. MOE OWNS 35% OF Z COPORATION AND HAS A BASIS OF $60,000 IN THOSE SHARES. WHAT ARE THE TAX CONSEQUENCES OF THE LIQUIDATING DISTRIBUTION TO Z CORPORATION AND TO MOE?Ma2. On May 28, 2024, Pesky Corporation acquired all of the outstanding common stock of Harman, Incorporated, for $420 million. The fair value of Harman's identifiable tangible and intangible assets totaled $512 million, and the fair value of liabilities assumed by Pesky was $150 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2024. Management has provided the following information: Fair value of Harman, Incorporated $ 400 million Fair value of Harman’s net assets (excluding goodwill) 370 million Book value of Harman’s net assets (including goodwill) 410 million Required: Determine the amount of goodwill that resulted from the Harman acquisition. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2024, if any. If an impairment loss is required, prepare the journal entry to record the lossP Ltd has two non-current assets: land and machinery at 30 June 2020. The carrying amount of land is $800,000 and machinery is $80,000 (cost $100,000 less accumulated depreciation $20,000). On 30 June 2020, P Ltd revalued both assets and the fair value land was $750,000 while fair value of machinery was $110,000. On 30 June 2021, fair value of land was $775,000 but the value of the machinery was unchanged. The tax rate is 30 percent. Required Provide the appropriate journal entries to record the revaluations of assets on 30 June 2020 to 30 June 2021.
