Mr. B, purely engaged in business had the following for the given year: Revenue P800,000 Cost of sales 200,000 Business expenses 150,000 Other (non-operating) business income Interest from bank deposit 20,000 Gain from Capital asset (holding period of 5 months) 25,000 Capital loss - Real property located in the Philippines (Cost 100,000 P1,000,000); Appraisal value P5,000,000 Capital gain - shares of stock sold directly to buyer 1,000,000 Capital gain - shares of stock sold thru PSE (not meet the minimum 1,000,000 public ownership) How much is taxable income, if Mr. B opted for optional standard deduction?

Mr. B, purely engaged in business had the following for the given year: Revenue P800,000 Cost of sales 200,000 Business expenses 150,000 Other (non-operating) business income Interest from bank deposit 20,000 Gain from Capital asset (holding period of 5 months) 25,000 Capital loss - Real property located in the Philippines (Cost 100,000 P1,000,000); Appraisal value P5,000,000 Capital gain - shares of stock sold directly to buyer 1,000,000 Capital gain - shares of stock sold thru PSE (not meet the minimum 1,000,000 public ownership) How much is taxable income, if Mr. B opted for optional standard deduction?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 52P

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