Taxation, 2012 Bar — Question 11

MULTIPLE CHOICE

An individual, who is a real estate dealer, sold a residential lot in Quezon City at a gain of P100,000.00 (selling price of P900,000.00 and cost is P800,000.00). The sale is subject to income tax as follows: a) 6% capital gains tax on the gain; b) 6% capital gains tax on the gross selling price of fair market value, whichever is higher; c) Ordinary income tax at the graduated rates of 5% to 32% of net taxable income; d) 30% income tax on net taxable income.

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.