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Question - On November 1, 2019, an individual taxpayer sold a 6-year term bonds investments for P1,200,000. These bonds bear 10% interest payable every December 31 and were previously acquired at P1,000,000 face value on January 1, 2019.
Required -
1) How much is the gain on sale of bonds?
2) How much is exempt income?
3) How much is the taxable income?
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