On June 1, 2018, a taxpayer purchased for P1,000,000 a vehicle which he used as delivery truck for his trading business.
Posted: Tue Nov 23, 2021 8:55 am
On June 1, 2018, a taxpayer purchased for P1,000,000 a
vehicle which he used as delivery truck for his trading business.
He deducted annual depreciation based on an estimated useful life
of five (5) years. On June 1, 2021, the automobile was
partially damaged in an accidental collision with another vehicle.
The cost of repairs amounted to P200,000. The taxpayer received
insurance proceeds of P100,000 to cover the loss. Determine the
amount of loss that could be deducted from the taxpayer's gross
income in 2021.
vehicle which he used as delivery truck for his trading business.
He deducted annual depreciation based on an estimated useful life
of five (5) years. On June 1, 2021, the automobile was
partially damaged in an accidental collision with another vehicle.
The cost of repairs amounted to P200,000. The taxpayer received
insurance proceeds of P100,000 to cover the loss. Determine the
amount of loss that could be deducted from the taxpayer's gross
income in 2021.