(i) Income from sale of shares of stock (ii) Income from the sale of real property situated in the Philippines (iii) Income from the sale, exchange…

The question

(i) Income from sale of shares of stock (ii) Income from the sale of real property situated in the Philippines (iii) Income from the sale, exchange, or other disposition of other capital assets Sale of residential house and lot by an official of a domestic corporation to another official in the same corporation for a consideration of P2.5 Million in 2011 is: (2012 Bar Question)

1. A.Exempt from VAT because the gross sales do not exceed P2.5 Million;
2. B.Exempt from VAT because the property sold is a capital asset, regardless of the gross selling price;
3. C.Exempt from VAT because the seller is not a person engaged in real estate business;
4. D.Taxable at 12% VAT output tax on the gross selling price of P2.5 Million.

This question has not been answered yet.