A corporation is closing its business on December 31, 2021 due to financial incapacity after being hit by the Covid-19 pandemic. The accountant prepared the necessary documents for the closure such as the Annual Income Tax Return and Audited Annual Financial Statements. In the Audited Annual Financial Statements of the company, there was an ending inventory balance amounting to Php1,250,000.00. What is the tax implication of the ending inventory balance of the company?
A corporation is closing its business on December 31, 2021 due to financial incapacity after being hit by the Covid-19 pandemic. The accountant prepared the necessary documents for the closure such as the Annual Income Tax Return and Audited Annual Financial Statements. In the Audited Annual Financial Statements of the company, there was an ending inventory balance amounting to Php1,250,000.00. What is the tax implication of the ending inventory balance of the company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation is closing its business on December 31, 2021 due to financial incapacity after
being hit by the Covid-19 pandemic. The accountant prepared the necessary documents for
the closure such as the Annual Income Tax Return and Audited Annual Financial Statements.
In the Audited Annual Financial Statements of the company, there was an ending inventory
balance amounting to Php1,250,000.00.
What is the tax implication of the ending inventory balance of the company?
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