1. Numbers 1-3 are based on the following information: Mr. Cruz…
Question Answered step-by-step 1. Numbers 1-3 are based on the following information: Mr. Cruz… 1. Numbers 1-3 are based on the following information: Mr. Cruz sold a 500 square meter residential house for P3,000,000. The house was acquired in 2002 for P2,000,000. On the date of sale, the fair market value of the house as shown in the real property declaration was P2,500,000 and the market value in the tax declaration amounted to P2,200,000. The zonal value was P7,000 per square meter. 1. The capital gains tax -a. P180,000b. 120,000c. 150,000d. 210,000 2. The capital gains tax of Mr. Cruz if the proceeds of sale was utilized in acquiring a new residence -*a. P210,000b. 150,000c. 180,000d. None 3. Mr. Cruz may avail of this exemption from capital gains tax only once every*a. three (3) yearsb. eighteen (18) calendar monthsc. ten (10) yearsd. five (5) years 4. The amount to be deposited in escrow if the proceeds of the sale shall be utilized in acquiring a new residence*a. P210,000b. 150,000c. 180,000d. None 5. Numbers 5 to 6 are based on the following information: Lexor Corporation made some repairs on a building being leased to Leslie, to wit:The major or extraordinary repay did not add value to the property but appreciably prolonged its useful life by five (5) years. 5. The entry in the books of Lexor to record the expenses incurred for minor repairs is -a. DR Building 30,000 CR Cash 30,000b. DR Lease Expense – Leslie 30,000 CR Cash 30,000c. DR Repairs Expense 30,000 CR Cash 30,000d. No entry 6. The entry in the books of Lexor to record the expenses incurred for major repaira. DR Building 60,000 CR Cash 60,000b. DR Repairs Expense 60,000 CR Cash 60,000c. DR Allowance for Depreciation 60,000 CR Cash 60,000d. None of the above Law Social Science Tax law BAOM 405 Share QuestionEmailCopy link Comments (0)
