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The records of Mr . T . Nalupan show the following transactions on the common shares of stock of Corolla Corporation which he held as
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
share.
July
share.
September
December
share
Purchase of shares at P per
Purchase of shares at per
Receipt of stock dividend
Sale of shares at P per
Required: Compute the gain or loss on the sale of shares using
the:
a Moving average method
b Firstin firstout method.
Mr A Cendero, the owner of a fenced squaremeter 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
years commencing on May ; b the lessee will pay a
monthly rental of P which will increase yearly at of
the previous rental. c the lessee will pay a oneyear 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 per quarter due on January April July and
October of each year; and d the lessee will construct a
building which will be completed on August at a cost of
P and which has an estimated useful life of years.
Required: Compute the gross income to be reported by Mr A
Cendero on the lease in a and b and c with
Mr A Cendero using the spreadout method in reporting the
income on the leasehold improvements.
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