Section 127, NIRC. A dealer in securities sold unlisted shares of stocks of a domestic corporation in 2010 and derived a gain of P1 Million…

The question

Section 127, NIRC. A dealer in securities sold unlisted shares of stocks of a domestic corporation in 2010 and derived a gain of P1 Million therefrom. The gain is: (2012 Bar Question)

1. A.Taxable at 30% regular corporate income tax based on net taxable income;
2. B.Taxable at 5%/10% capital gains tax based on net capital gain;
3. C.Taxable at ½ of 1% stock transaction tax based on the gross selling price or fair market value, whichever is higher
4. D.Exempt from income tax

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