Realization and Recognition

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1. Which distinction best describes realization and recognition of gain? Multiple Choice Easy
2. Under section 40’s general rule, when a sale or exchange produces gain, what is ordinarily recognized absent an applica… Multiple Choice Easy
3. When does current section 32(A)(1), as amended by RA 12214, include the specified equity-based compensation in gross in… Multiple Choice Easy
4. An asset rises in estimated value, but its owner does not sell, exchange, or otherwise realize gain, and no special rul… Multiple Choice Medium
5. A property-for-stock exchange satisfies every applicable section 40(C)(2) nonrecognition condition. An officer says gai… Multiple Choice Medium
6. An ordinary asset is sold for P160,000 cash with an adjusted tax basis of P100,000. Assume no special tax, exclusion, s… Multiple Choice Hard
7. A taxpayer completes a qualifying nonrecognition exchange and claims the transaction permanently erases all gain for ev… Multiple Choice Hard
8. Explain realization versus recognition and give a statutory illustration. Essay Medium
9. Explain how section 40 distinguishes sale proceeds from gain. Essay Medium
10. State the current equity-compensation timing provision introduced by RA 12214 and explain why an old general assumption… Essay Medium
11. In Section 40(A), does the amount realized from a disposition include noncash property received? Multiple Choice Easy
12. For Section 40’s qualifying exchange provisions, what voting-power ownership constitutes control under the CREATE amend… Multiple Choice Easy