The records of Mr$.$ T$.$ Nalupan show the following transactions

on the common shares of stock of Corolla Corporation which he

held as investments:

May $1,2019$

share.

July $5,2019$

share.

September $30,2019$

December $20,2019$

share

Purchase of $500$ shares at P$51\mathrm{.}00$ per

Purchase of $600$ shares at $52\mathrm{.}00$ per

Receipt of $25\%$ stock dividend

Sale of $800$ shares at P $60\mathrm{.}00$ per

Required: Compute the gain or loss on the sale of $800$ shares using

the:

a$.$ Moving average method

b$.$ First$-$in$,$ first$-$out method.

Mr$.$ A$.$ Cendero, the owner of a fenced $500$ square$-$meter lot,

entered into a contract with Mr$.$ P$.$ Nulbos for the lease of the lot

under the following terms and conditions: $($a$)$ Lease period of $25$

years commencing on May $1,2018$; $($b$)$ the lessee will pay a

monthly rental of P$20,000\mathrm{.}00,$ which will increase yearly at $10\%$ of

the previous rental. $($c$)$ the lessee will pay a one$-$year advance

rental which Mr$.$ A$.$ Cendero may use any time, after which the

rental will be paid monthly on the first day of each month in

advance; $($d$)$ the lessee will pay the real property tax in the amount

of P$3,000\mathrm{.}00$ per quarter due on January $1,$ April $1,$ July $1$ and

October $1$ of each year; and $($d$)$ the lessee will construct a

building which will be completed on August $1,2019$ at a cost of

P$30,000,000\mathrm{.}00$ and which has an estimated useful life of $30$ years.

Required: Compute the gross income to be reported by Mr$.$ A$.$

Cendero on the lease in $($a$)2018,$ and $($b$)2019,$ and $($c$)2020$ with

Mr$.$ A$.$ Cendero using the spread$-$out method in reporting the

income on the leasehold improvements.