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Mr. Asyoso signified his intention to be taxed at 8% income tax rate on gross sales in his 1st Quarter Income Tax Return. He has no other source of income, His total sales for the first three (3) quarters amounted to P4,000,000.00 with 4th quarter sales of P4,500,000.00.   REQUIRED: Compute the tax liability of Ms. Asyoso for the year 2020.

Mr. Asyoso signified his intention to be taxed at 8% income tax rate on gross sales in his 1st Quarter Income Tax Return. He has no other source of income, His total sales for the first three (3) quarters amounted to P4,000,000.00 with 4th quarter sales of P4,500,000.00.   REQUIRED: Compute the tax liability of Ms. Asyoso for the year 2020.

FINANCIAL ACCOUNTING
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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  1. Mr. Asyoso signified his intention to be taxed at 8% income tax rate on gross sales in his 1st Quarter Income Tax Return. He has no other source of income, His total sales for the first three (3) quarters amounted to P4,000,000.00 with 4th quarter sales of P4,500,000.00.

 

REQUIRED: Compute the tax liability of Ms. Asyoso for the year 2020.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8% 8% 8% Total Sales 750,000.00 750,000.00 2,500,000.00 4,500,000.00 Less: Cost of Sales 300,000.00 300,000.00 1,200,000.00 1,200,000.00 Gross Income 450,000.00 450,000.00 1,300,000.00 3,300,000.00 Less: Operating Expenses 120,000.00 120,000.00 330,000.00 480,000.00 820,000.00 2,580,000.00 720,000.00 TAXABLE INCOME 330,000.00
Transcribed Image Text:1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8% 8% 8% Total Sales 750,000.00 750,000.00 2,500,000.00 4,500,000.00 Less: Cost of Sales 300,000.00 300,000.00 1,200,000.00 1,200,000.00 Gross Income 450,000.00 450,000.00 1,300,000.00 3,300,000.00 Less: Operating Expenses 120,000.00 120,000.00 330,000.00 480,000.00 820,000.00 2,580,000.00 720,000.00 TAXABLE INCOME 330,000.00
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