ANSWER THE FOLLOWING WITH SOLUTION

1.Janet sold his principal residence for P 5,000,000 when its fair market value was P 6M. The house was purchased five (5) years ago for P 3M. Out of the proceeds of P 5M, Janet utilized the P4M for the purchase of a new residential house.

The capital gains tax on the sale is -

a.P 360,000c. P 72,000

b.P 300,000 d. P 60,000

2.Based on the preceding problem, what is the cost basis of the new residence?

a.P 3,000,000c. P 72,000

b.P 2,400,000d. P 60,000

3.On August 15, 2015, Mr. Cruz sold a 500 square meter residential house for P 3M. The house was acquired in 2002 for P 2M. On the date of sale, the fair market value of the house as shown in the real property declaration was P 2.5M and the assessor's value amounted to P 2,200,000. The zonal value was P7,000 per square meter.

The capital gains tax -

a.P 180,000c. P 150,000

b.P 120,000d. P 210,000

4.Refer to number 4, the capital gains tax if the proceeds of sale was utilized in acquiring new residence.

a.P 210,000c. P 180,000

b.P 150,000d. None

5.Refer to number 4, the amount to be deposited in escrow if the proceeds of the sale shall be utilized in acquiring a new residence -

a.P 210,000c. P 180,000

b.P 150,000d. None

6.Refer to number 4, capital gains tax payable if Mr. Cruz will be utilized only P 1,500,000 of the proceeds in acquiring a new residence?

a.P 90,000c. None

b.P 210,000d. P 105,000

7.Rolly sold 1,500 shares of stocks of Achieves Corporation. The par value per share was P 85 but were acquired by him at P 90. On the date of sale, the shares had a selling price of P 120 per share.

The capital gains tax on the sale if the shares are not listed and traded in the PSE.

a.P 2,250c. P 14,000

b.P 2,625d. P 11,375

8.Ronald sold 1,000 shares of not listed and traded shares of stocks. The data of which are as follows:

Selling priceP 600,000

Fair market value620,000

Expenses on the sale10,000

Purchase price440,000

Expenses upon acquisition3,000

The capital gains tax due is -

a.P 13,000c. P 9,700

b.P 14,000d. P 12,850

9.Nada sold the following shares of stock during the year:

Listed and tradedNot listed and tradedListed and traded

Selling priceP 1,500,000P 630,000P 210,000

Cost1,230,000570,000170,000

Date sold01-20-1503-16-1511-14-15

The capital gains tax payable is -

a.P 3,000c. P 11,550

b.P 32,000d. P 3,150