value on the improvement on the lot was 1,500,000. The lot was purchased at a cost of 2,000,000. Compute the monetary value to be reported in the quarterly fringe benefit tax return. O 250,000 O 125,000 62,500 O 31,250

value on the improvement on the lot was 1,500,000. The lot was purchased at a cost of 2,000,000. Compute the monetary value to be reported in the quarterly fringe benefit tax return. O 250,000 O 125,000 62,500 O 31,250

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 30CE

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

ABC Company designated a
residential property for the
use of its managerial
employee. The lot has zonal
value of 3,500,000 and
2,000,000 value per tax
declaration. The assessed
value on the improvement on
the lot was 1,500,000 . The lot
was purchased at a cost of
2,000,000. Compute the
monetary value to be reported
in the quarterly fringe benefit
tax return.
250,000
125,000
62,500
31,250

Mr. Herman had the following dealings in capital assets:
Short-term capital gain
200,000.00
Long-term capital gain
100,000.00
Short-term capital loss
100,000.00
Long-term capital loss
150,000.00
Compute the reportable net capital gain.
50,000
O 75,000
O 40,000
25,000

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