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Problem 1: Tuesday Company traded 8,000 shares of its P25 par value common stock for a tract of land to be kept for a future factory plant on October 1. On the exchange date, the fair market value of Tuesday Co.'s common stock was P80 per share. When an old building on the site was demolished, Tuesday Co. earned P36,000 from the sale of scrap (No construction of the new building). The tract of land should be carried at?
a) P200,000
b) P236,000
c) P604,000
d) P640,000
Compute: 1) Adjusted Gross Income, 2) Taxable Income, 3) Tax Owed or Refunded?
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