Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000. In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000. How much is his income tax due in 2021 if he avails of the 8% income tax rate?
Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000. In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000. How much is his income tax due in 2021 if he avails of the 8% income tax rate?
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 11MCQ
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Question
Mr. L is the CEO of the prestigious Campuswise Cafe along Teresa St., Sta. Mesa. Manila. Also, he writes books, self-publish them, and distributes them to different bookstores in the Philippines. In the first week of January 2021, he resigned from Campuswise Cafe to concentrate on his self-publishing business. His total compensation income in 2021 amounted to P200,000 inclusive of other benefits and non-taxable items of of P35,000.
In 2021, his self-publishing business had a gross sales of P2,500,000, cost of sales of P431,000, and operating expenses of P233,000. It also had a non-operating income of P143,000.
How much is his income tax due in 2021 if he avails of the 8% income tax rate?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT