Question 8 (30 points) Theodore, a resident citizen, had the following activities during the year 2021: - 6 condo units

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Question 8 30 Points Theodore A Resident Citizen Had The Following Activities During The Year 2021 6 Condo Units 1 (63.52 KiB) Viewed 34 times

Question 8 (30 points) Theodore, a resident citizen, had the following activities during the year 2021: - 6 condo units with an original cost of 700,000 for a selling price of 1,000,000 when the fair market value of the properties were at 1,500,000. - 50,000 worth of jewelries for a price of 80,0000. Fair market value at the date of sale was 60,000. This was in his possession for 3 months. - His car, originally bought at 450,000, selling price is 400,000. This was in his possession for 1.5 years. - Shares of stocks from Ginebra Corporation bought at 100,000, sold for 150,000. - Sold his principal residence for 5,000,000. Zonal value of the property is 5,500,000 and assessed value is 6,500,000. Bought the house in the year 2016 at 2.500,000. - Bought a new condo unit after 7 months of selling his old principal residence for 4,500,000 to which he will be permanently residing in the foreseeable future. - Gross Income from his merchandising business is 3,450,000, - His merchandising business incurred expenses of 2,360,000. 1. Compute the amount of ordinary gain (loss). 2. Compute the amount of net capital gain (loss) subject to basic tax. 3. Compute the total taxable income for the year. 4. Compute the amount of capital gains subject to capital gains tax. 5. Compute the cost of the new principal residence of Theodore. 6. Compute the capital gains tax. Blank #1 Blank # 2