For the purpose of computing the taxable income and the income tax, it shall include all business expenses directly incurred to produce the merchandise to bring them to their present location and use. a. Cost of goods soldb. Operating expensesc. Both a and bd. Cost Taxpayer is a sole proprietor ownerof a merchandising business. He sellsan idle lot located in Baguio City at10% above cost. Records show thecost of P1,000,000. Zonal value perBIR list is P1,200,000 and the valueper local assessor's office isP800,000. Compute the capital gainstax: *a. P6,000b. PP60,000O c. P72,000O d. Not subject to capital gains tax

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For the purpose of computing the taxable income and the income tax, it shall include all business expenses directly incurred to produce the merchandise to bring them to their present location and use. a. Cost of goods sold b. Operating expenses c. Both a and b d. Cost

For the purpose of computing the taxable income and the income tax, it shall include all business expenses directly incurred to produce the merchandise to bring them to their present location and use. a. Cost of goods sold b. Operating expenses c. Both a and b d. Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. Cost of goods sold

b. Operating expenses

c. Both a and b

d. Cost

Taxpayer is a sole proprietor owner
of a merchandising business. He sells
an idle lot located in Baguio City at
10% above cost. Records show the
cost of P1,000,000. Zonal value per
BIR list is P1,200,000 and the value
per local assessor's office is
P800,000. Compute the capital gains
tax: *
a. P6,000
b. PP60,000
O c. P72,000
O d. Not subject to capital gains tax

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