--------------- VAT payable P3,189.6 2,029.6 = P1,160 1 – – ------- 17 ------- (b)(i) Computation of the gain/loss on the disposal of GMD’s industrial building: P’000 P’000 Indexed cost: Freehold land cost 120 1/2 – I.A. Jan 1994 Jan 2016 – – (1715.4-324.2)/324.2 x 120 515 1 -------- 635 Factory building 380 1/2 –cost I.A Mar 1996 Jan 2016 – – (1715.4 402.2)/402.2 x 380 1241 1/2 – -------- 1,621 Perimeter wall & gates 80 1/2 (1715.4-448.7)/448.7 x 80 226 306 1/2 Internal paving & driveway 90 1/2 I.A. Aug 2003 Jan 2016 – – (1715.4 698.0)/698.0 x 90 131 1/2 – -------- 221 ---------- Total indexed cost 2,783 Sales proceeds 3,500 1/2 ----------- ------- Chargeable gain 717 5 ----------- ------
--------------- VAT payable – P3,189.6 – 2,029.6 = P1,160 1 ------- 17 ------- (b)(i) Computation of the gain/loss on the disposal of GMD’s industrial building: P’000 P’000 Indexed cost: Freehold land – cost 120 1/2 I.A. – Jan 1994 – Jan 2016 (1715.4-324.2)/324.2 x 120 515 1 -------- 635 Factory building –cost 380 1/2 I.A – Mar 1996 – Jan 2016 (1715.4 – 402.2)/402.2 x 380 1241 1/2 -------- 1,621 Perimeter wall & gates 80 1/2 (1715.4-448.7)/448.7 x 80 226 306 1/2 Internal paving & driveway 90 1/2 I.A. – Aug 2003 – Jan 2016 (1715.4 – 698.0)/698.0 x 90 131 1/2 -------- 221 ---------- Total indexed cost 2,783 Sales proceeds 3,500 1/2 ----------- ------- Chargeable gain 717 5 ----------- ------