On July 1, 2020, Bar Inc. purchased 50,000 of Tell Inc.’s preference shares in exchange of a tract of Bar’ land which was carried in the books at P1,200,000. The shares were classified as financial assets at fair value through profit or loss. The land had a fair value of P1,500,000. Meanwhile, Tell's shares had a fair value of P29 per share. How much is the gain to be recognized from the exchange of the land?
On July 1, 2020, Bar Inc. purchased 50,000 of Tell Inc.’s preference shares in exchange of a tract of Bar’ land which was carried in the books at P1,200,000. The shares were classified as financial assets at fair value through profit or loss. The land had a fair value of P1,500,000. Meanwhile, Tell's shares had a fair value of P29 per share. How much is the gain to be recognized from the exchange of the land?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
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On July 1, 2020, Bar Inc. purchased 50,000 of Tell Inc.’s
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