37.LOKI Corporation, an unlisted entity, has assets of P12,500,000. It can negotiate P5 million gain either...

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37.LOKI Corporation, an unlisted entity, has assets of P12,500,000. It can negotiate P5 million gain either by selling the entire assets or the shares of stocks. Assuming the assets are capital assets held for five years, should the company sell the entire assets or the stocks to minimize tax liabilities?Single choice. (2 Points) • the corporation should sell the assets since those are ordinary assets • the corporation should sell the shares to pay lower capital gains tax of 15% • the corporation should sell the assets because those are subject to holding period • the corporation should the shares since the sale would be exempt from income tax 37.LOKI Corporation, an unlisted entity, has assets of P12,500,000. It can negotiate P5 million gain either by selling the entire assets or the shares of stocks. Assuming the assets are capital assets held for five years, should the company sell the entire assets or the stocks to minimize tax liabilities?Single choice. (2 Points) • the corporation should sell the assets since those are ordinary assets • the corporation should sell the shares to pay lower capital gains tax of 15% • the corporation should sell the assets because those are subject to holding period • the corporation should the shares since the sale would be exempt from income tax

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The correct answer is The corporation should sell the shares to pay lower capital gains tax of 15 He... View the full answer