Reference no: EM133003456
Jen is engaged in business. The following pertains to her transactions during 2014:
Sold his personal car which was purchased at P200, 000 to a friend who paid only half of the car's P500,000 current fair value.
Sales of merchandise was P800, 000 and the cost of goods sold was P600, 000.
Jen acquired several stocks from the Philippine Stock Exchange for speculation. These stocks have an aggregate purchase price of P400, 000 but with P700, 000 fair value by December 31, 2014.
Jen's house and lot which he acquired for P1, 500,000 in 2010 now have a current fair value of P2, 500,000.
Problem 1: Compute Jen's total income subject to income tax.