None Joe's Grocery Store, a calendar year taxpayer, had ending inventory of $160,000 on December 31st of the tax year. During theyear, the store purchased additional inventory of $415, 000. If cost of goods sold for the year was $470,000, what was thebeginning inventory?A. $55,000.B. $215,000.C. $255,000.D. $310,000.

The basis formula shown below is derived from the income statement (computation for cost of goods…

Answered: Joe's Grocery Store, a calendar year…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 5MCQ

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Joe's Grocery Store, a calendar year taxpayer, had ending inventory of $160,000 on December 31st of the tax year. During the year, the store purchased additional inventory of $415, 000. If cost of goods sold for the year was $470,000, what was the beginning inventory? A. $55,000. B. $215,000. C. $255,000. D. $310,000.
A VAT taxpayer had the following data on its operations for he month of January 2018:Sales, total invoice price P 592,480Purchases of goods, VAT not included:From VAT registered persons 100,000From nonVAT registered persons 8,000From persons subject to percentage taxes 10,000Salaries of employees 60,000Other operating expenses 12,000This is the first month of being liable to value added tax. Data in inventories at the beginning of the period bought from VAT registeredpersons follow:Inventory at cost P 44,800Inventory at realizable value 49,000Value added tax paid on beginning inventory 4,80016. How much is the input tax?17. How much is the value added tax payable?
Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September. What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%? Select one: O a. $10,000 O b. $4,900 c. $8,750 d. None of the above
A seller of goods has the following details of sales and collection during the month: Receivables, beginning P 500,000.00 Gross sales 700,000.00 Less: Collection 450,000.00 Receivables, end P 750,000.00 1. What is the amount subject to business tax? 2. Determine the amount subject to business tax if the taxpayer is a seller of services.
2 Nunez Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, Nunez paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, Nunez had $64,600 of inventory on hand. Required: a. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. b. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the accrual method as its overall method of accounting. Complete this question by entering your answers in the tabs below. Required A Required B Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. Cost of goods sold
On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
A VAT taxpayer had the following sales and purchases during the month:Sales, inclusive of VAT Php 336,000Purchases, exclusive of VAT 250,000Compute the gross income under each of the following independent cases:7. The sale is made to regular customers.8. The sale is made by a registrable person.
At 1 December 20X5, Laurel owes the sales tax authorities $23,778. During the month of December, she recorded the following transactions: Sales of $800,000 exclusive of 17.5% sales tax. Purchases of $590,790 inclusive of sales tax. What is the balance on Laurel's sales tax account at the end of December? $
Mr. Masipag had annual gross receipts not exceeding P100,000. During the month, he made the following sales: hall Sale of car rugs Sale of cigarettes Sale of candies P 2,000 3,000 3.000 P. Total 8.000 Compute the total amount subject to business tax. а. РО b. P2,000 0000 c. P 5,000 d. P 8,000 2920: aM M I
Serbesa Company is a manufacturer of local beer. During a particular quarter, it had the following transactions (net of VAT): Jan. 2: Consigned beer to a retailer in Quezon City amounting to P200,000 Feb. 14: Exported PI,000,000 worth of beer to UK. Feb. 27: President of Serbesa Company celebrated his birthday, consuming P50,000 worth of beer given to him by the company as a birthday gift. Mar. 20: Declared property dividend of one case of beer for every 10 shares amounting to P150,000. Additional Information: From January to March, domestic sales to wholesalers amounted to P600,000. No beer was returned by the consignee until the end of the quarter. The output tax for the quarter is:
Yesterday Estate Jewelers had total sales, including sales tax, of $16,502.50. The store is located in a state that has a sales tax of . the accountant for the 6 3/4% store , calculate : the anount of sales revenue and the amount of sales tax that must be sent to the state department of revenue
Grouse Company is a furniture retailer whose average annual gross receipts for the three preceding years exceeded $26,000,000. In the current tax year, the company purchased merchandise with an invoice price of $15,000,000, less a 2% dis- count for early payment. However, the company had to borrow on a bank line of credit and paid $150,000 interest to take advantage of the discount for early payment. Freight on the merchandise purchased totaled $360,000. For September, Grouse agreed to pay the customer’s freight on goods sold. The total cost of this freight-out was $70,000. The company has three stores and operates a warehouse where it stores goods. The cost of operating the warehouse was $240,000. The $240,000 includes labor, depreciation, taxes, and insurance on the building. The cost of the purchasing operations totaled $420,000. The jurisdiction where the company operates imposes a tax on inventories on hand as of January 1. The inventory tax for this year is $24,000. The invoice…

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