In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which costs P800,000 for P1,200,000, inclusive or under the following terms: July 1, 2020-as down payment P100,000 Monthly installment thereafter 50,000 Mr. Marangley will choose whichever favourable permissible income reporting method for him.

In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which costs P800,000 for P1,200,000, inclusive or under the following terms: July 1, 2020-as down payment P100,000 Monthly installment thereafter 50,000 Mr. Marangley will choose whichever favourable permissible income reporting method for him.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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Similar questions

In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which costs P800,000 for P1,200,000, inclusive or under the following terms: July 1, 2020-as down payment P100,000 Monthly installment thereafter 50,000 In the immediately preceding problem, assuming Mr. Marangley is not a dealer of car, how much gross income is to be reported in 2020? How much gross income is to be reported in 2020? P400,000 P116,667 P250,000 P108,219
In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which costs P800,000 for P1,200,000, inclusive or under the following terms: July 1, 2020-as down payment P100,000 Monthly installment thereafter 50,000 In the immediately preceding problem, assuming Mr. Marangley is not a dealer of car, how much gross income is to be reported in 2020? How much gross income is to be reported in 2020? P400,000 P116,667 P250,000 P108,219 PLEASE EXPLAIN . THANKS!
NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000. Using the information above, what is the interest expense for 2019? A. None C. 330,000B. 300,000 D. 630,000
Lancelot is a dealer of household appliances. He reported the following in 2019 and 2020: 2019 2020 Installment sales P500,000 P800,000 Cost of installment sales 250,000 440,000 Collections 300,000 600,000 Lance’s 2020 collection is inclusive of P100,000 accounts from 2019. Using the accrual basis of accounting compute Lancelot’s gross income subject to income tax in 2020. P360,000 P275,000 P320,000 P250,000
In 2019, Bright Inc. sold its parking lot for P2,400,000 payable on installment. The lot was previously acquired for P1,500,00. The buyer has an outstanding unpaid balance of P1,800,000 as of December 31, 2019, Bright’s year end. Compute Bright’s Gross income on 2019 using the installment method. a. P900,000 b. P675,000 c. P225,000 d. P112,500
Lancelot is a dealer of household appliances. He reported the following in 2019 and 2020: 2019 2020 Installment sales P500,000 P800,000 Cost of installment sales 250,000 440,000 Collections 300,000 600,000 Lance’s 2020 collection is inclusive of P100,000 accounts from 2019. Using the installment method, compute Lancelot’s gross income subject to income tax 2020. P360,000 P250,000 P320,000 P275,000
In 2020, Ben purchases and places in service a new auto (not a luxury auto) for his business. The auto costs $57,000 and will be used 60% for business. Assuming the half-year convention applies and Ben elects out of bonus depreciation and Section 179, what will depreciation on the auto be in 2020? $10,100 $57,000 $18,100 $6,060
Mr. A, a real estate dealer, sold real estate for P2,000,000 on November 30, 2019. The cost of the property was P1,300,000. The terms of the sale were as follows: (1) Down payment of P400,000 and (2) P100,000 monthly installment beginning December 2019 until fully paid. How much is the income to be reported in 2019?
Miaka sold her personal property in 2018, with details as follows: Cost ₱ 425,000 Mortgage assumed by the buyer 510,000 Installment collection schedule: 2018 140,000 2019 140,000 2020 60,000 How much is the selling price? SOLUTION: 140,000 + 140,000 + 60,000=340,000 How much is the contract price? How much is the initial payments? How much is the realized gross profit for 2018? How much is the realized gross profit for 2019? How much is the realized gross profit for 2020?
Mr. X provided the following data on sale of his personal property sold in 2020 held by him for 15 months: Cost P225,000 Mortgage assumed by the seller 270,000 Installment Collection Schedule: 2020 67,500 2021 67,500 2022 45,000 How much is the contract price? Group of answer choices P180,000 P450,000 P225,000 P270,000
1. Miguel provided the following data on the sale of her personal property sold in 2019 held by her for 15 months. COST P225,000 Mortgage assumed by buyer 270,000 Installment Collection: 2019 67,500 2020 67,500 2021 45,000 REQUIREMENT: Compute for the below: a. Selling Price b. Contract Price c. Initial Payments d. Income subject to income tax in 2019, 2020, 2021
On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.