How much is the taxable gain for Jose

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Reference no: EM132654675

Problem 1 - Myka, a real estate dealer, sold a real property for P2000000 on November 30, 2019. The cost of the property was P1500000. The terms of the sale was 20% down payment and the balance in monthly installment of P100000 beginning December 2019 until fully paid.

1. How much is the income to be reported in 2019?

2. Assume that Myka is not a real estate dealer and the same is held as investment, how much should she report as income in 2019?

3. Assume that Myka is not a real estate dealer but the real estate sold was a parcel of land used in business. How much should he report as income in 2019?

Problem 2 - Upon information from a reliable source that the price of San Miguel shares will drop, Jose requested his broker to sell for him 5000 shares to be covered within a week. The stock broker sold for Jose the 5000 shares at P30 per share. One week later, the San Miguel shares were selling at P20 per share. Jose ordered his broker to purchase for him 5000 shares to cover what he borrowed a week ago. How much is the taxable gain for Jose?

Reference no: EM132654675

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