Question
Ms. Emma Thompson, a real estate dealer has the following data with regards to sale transactions for the month of May, 2020. Sale 1 Consideration
Ms. Emma Thompson, a real estate dealer has the following data with regards to sale transactions for the month of May, 2020.
Sale 1
Consideration in the Deed of sale6,000,000
Fair market value as assessed5,100,000
Zonal value4,900,000
Date of saleMay 2, 2020
Cost to the seller1,000,000
Mortgage assumed2,000,000
Payments received:
May 2, 2020500,000
May 2, 2021700,000
December, 2021 2,800,000
Sale 2
Date of saleMay 12, 2020
Consideration in Deed of Sale4,000,000
FMV appearing in the Tax Declaration3,900,000
Zonal Value4,200,000
Cost to the seller500,000
Mortgage to be assumed by the buyer700,000
Payments received:
May 12, 20202,000,000
May 12, 20211,300,000
Required:
1. Compute for the Total VAT for sale 1 and sale 2
2. Compute for the VAT for the month of May, 2020; May, 2021 and December, 2021
Step by Step Solution
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Alright lets address the problem stepbystep We are tasked to compute the Total VAT for two sales and then distribute the VAT for the respective months ...
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
