4.A domestic corporation organized and operated as a non-stock non-profit educational institution received P 200,000 from tuition fees and P 300,000 from rentals to private concessionaires. The educational institution used the P 500,000 in order to buy books as part of its program of upgrading the library. Which of the following statement is true? The entire amount of P 500,000 is subject to 30% income tax. The entire amount of P 500,000 is subject to 10% income tax. Only the amount of P 300,000 is subject to 30% income tax. The entire amount of P 500,000 is exempt from income tax.
4.A domestic corporation organized and operated as a non-stock non-profit educational institution received P 200,000 from tuition fees and P 300,000 from rentals to private concessionaires. The educational institution used the P 500,000 in order to buy books as part of its program of upgrading the library. Which of the following statement is true? The entire amount of P 500,000 is subject to 30% income tax. The entire amount of P 500,000 is subject to 10% income tax. Only the amount of P 300,000 is subject to 30% income tax. The entire amount of P 500,000 is exempt from income tax.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4.A domestic corporation organized and operated as a non-stock non-profit educational institution received P 200,000 from tuition fees and P 300,000 from rentals to private concessionaires. The educational institution used the P 500,000 in order to buy books as part of its program of upgrading the library. Which of the following statement is true?
The entire amount of P 500,000 is subject to 30% income tax.
The entire amount of P 500,000 is subject to 10% income tax.
Only the amount of P 300,000 is subject to 30% income tax.
The entire amount of P 500,000 is exempt from income tax.
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