Name:

Program:
Year:
Submission Date:

Instruction: Place your handwritten solutions on a piece

of paper. Scan or capture your output in portrait. Attach
the file prior to submission.

Problem

Pedro sold to Ana, his shares of stock in Makabayan

Corporation (a closely held domestic corporation) for
P400,000 when its fair market value was P850,000. The
shares were purchased by Pedro five years ago for
P500,000.

Required:

Determine the following:

a) Donor’s Tax Due
b) Capital Gains Tax

Assuming the shares were sold in the ordinary course of

business, at arm’s length transaction, without donative
intent, determine the following:
a) Donor’s Tax Due
b) Capital Gains Tax