How much income or loss should A report to the BIR on this building for 2013,...
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How much income or loss should A report to the BIR on this building for 2013, if he is using the spread-out method, assuming that there was no insurance coverage on said building? On January 5, 2008, A entered into a 10-year lease contract with B over a 1,000 Sq. M. lot at a minimal rental of 1,000 a month, on condition that B will construct a building thereon, which will become the property of A upon termination of the lease. The building was completed on December 31, 2008 at a total cost of P5,000,000.00, with an estimated useful life of 20 years. Assuming that in early 2013 the building was destroyed by an earthquake. How much income or loss should A report to the BIR on this building for 2013, if he is using the spread-out method, assuming that there was no insurance coverage on said building? On January 5, 2008, A entered into a 10-year lease contract with B over a 1,000 Sq. M. lot at a minimal rental of 1,000 a month, on condition that B will construct a building thereon, which will become the property of A upon termination of the lease. The building was completed on December 31, 2008 at a total cost of P5,000,000.00, with an estimated useful life of 20 years. Assuming that in early 2013 the building was destroyed by an earthquake.
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