AAA Corporation, a retailer, has a gross sales of P1,400,000,000.00 with a cost of sales of P60,000,000,00 and allowable deductions of 150,000,000.00 for the calendar year 2021. Its total assets of P180,000,000.00 as of December 31, 2021 per Audited Financial Statements includes the land costing P50,000,000.00 and the building of P25,000,000,00 in which the business entity is situated, with an aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY 2021 is the 5th year of operation of AAA Corporation. REQUIRED: 1. how much is the taxable income? 2. how much is the tax payable?
AAA Corporation, a retailer, has a gross sales of P1,400,000,000.00 with a cost of sales of P60,000,000,00 and allowable deductions of 150,000,000.00 for the calendar year 2021. Its total assets of P180,000,000.00 as of December 31, 2021 per Audited Financial Statements includes the land costing P50,000,000.00 and the building of P25,000,000,00 in which the business entity is situated, with an aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY 2021 is the 5th year of operation of AAA Corporation. REQUIRED: 1. how much is the taxable income? 2. how much is the tax payable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
AAA Corporation, a retailer, has a gross sales of P1,400,000,000.00
with a cost of sales of P60,000,000,00 and allowable deductions of
150,000,000.00 for the calendar year 2021. Its total assets of
P180,000,000.00 as of December 31, 2021 per Audited Financial
Statements includes the land costing P50,000,000.00 and the building of
P25,000,000,00 in which the business entity is situated, with an
aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY 2021
is the 5th year of operation of AAA Corporation.
REQUIRED:
1. how much is the taxable income?
2. how much is the tax payable?
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