ACCOUNTING TAXATION Answer the following:

$1.$ Mr$.$ Dela Cruz bought a residential house and lot in $2018$ for P$12,000,000.$ In $2023,$ curious as to how much his property then cost, he asked a real estate broker to reappraise the same. The real estate broker reported that the value of his property has increased to P$30,000,000.$ Should Mr$.$ Dela Cruz repost the P$18,000,000$ increase in his income tax return for the year $2023?$

$2.$ Mrs$.$ Castuciano leased a parcel of land to Mrs$.$ Briones for an annual rental of P$1,200,000.$ In addition, the parties agreed that Mrs$.$ Briones shall erect an office building on the vacant lot which the latter will used for commercial purposes. They further agreed that the ownership of the building would be transferred to Mrs$.$ Castuciano at the end of the lease. The lease began on January $1,2020.$ Construction of the building immediately commenced and was completed on December $30,2021$ at a total cost of P$50$ Million. The building has an estimated life of twenty years and lease will last up to December $31,2029.$ Based on the above information, how much income from leasehold improvements should be reported by Mrs$.$ Castuciano in $2020,2021,$ and $2022$ assuming the use of $($a$)$ outright method, $($b$)$ spread$-$out method.

$3.$ Refer to the same information in number $2$ above. Assume that the terms of the lease were violated and the same was cancelled on January $1,2021$ in favor of Mrs$.$ Castuciano. Under the spread$-$out method, how much income should Mrs$.$ Castuciano report from leasehold improvements in the year $2022?$

$4.$ Mr$.$ Guazon, $65$ years of age and a retired government employee, had the following properties and transactions at the end of the $2021$ taxable year:

$*$ Shares of stock in Lambana Corporation which he bought in $2014$ for

P$90,000$ and which were worth P$100,000$ as of the end of $2020.$

$*$ Shares of stock of Red White Blu Enterprises, Inc. which he bought for P$80,000$ in $2006$ and which he sold for P$150,000$ in $2020.$

Which of the above items represents$)$ income subject to tax and how much?

$5.$ Mr$.$ Chang, a CPA, has among his clients an advertising agency which regularly pays him a monthly retainer of P$5,000.$ In order to save income taxes, Mr$.$ Chang arranged for the retainer to be paid directly to his daughter, Gloria. This year, Mr$.$ Chang's gross income from his accounting practice, exclusive of the P$500,000$ monthly retainer fee is P$4,000,000.$ How much income from the practice of his profession should Mr$.$ Chang report this year?

$6.$ In $2021,$ Abeleda Corporation has a capital stock of $2,000$ shares without par value. At the time of its incorporation, the value of each no$-$par value share was P$50.$ In $2020,$ due to its profitable operations, the corporation earned a surplus of P$500,000.$ The corporation's board of directors increased the stated value of each share by P$150$ making each share worth P$200.$ The BIR, for income tax purposes, assessed each stockholder for the P$150$ increase. Is the BIR's action valid? Explain your answer.

$7.$ Mr$.$ Gomez was engaged by Viva Cinema to perform a pantomime act in a movie it was making. Mr$.$ Gomez was to be paid P$50,000$ for his performance and the parties signed the necessary contract. Mr$.$ Gomez then gratuitously assigned his rights under the contract to his son, Richard. Richard later on collected the P$50,000$ from Viva. Is the P$50,000$ taxable to Mr$.$ Gomez?

Explain your answer.