Mr. ABC bought a 2,000 sq meter land at a cost of P500,000. He leased the land to Mr. B Franco at an annual rental of P 40, 000. The

Mr. ABC bought a 2,000 sq meter land at a cost of P500,000. He leased the land to Mr. B Franco at an annual rental of P 40, 000. The term of the contract of lease is 15 years. The contract of lease provides that Mr. Franco will construct a building on the land and the building will belong to the lessor at the end of the term of the lease or at the termination of the lease. The building was constructed at a total cost of P400,000 and has an estimated useful life of 20 years which is the basis of a straight-line method of depreciation. Assuming that the contract of lease was terminated after the 10th year due to the fault for the lessee, the income tax due of Mr. ABC in the year upon the termination of contract will be:

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