ndar year 2021. Its total assets of P180,000,000.00 as of December 31, 2021 per Audited Financial Statements includes the land costing P50,000,000.00 and the building of P25,000,000,00 in which the business entity is situated, with an aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY 2021 is the 5th year of operation of AAA Corpo
ndar year 2021. Its total assets of P180,000,000.00 as of December 31, 2021 per Audited Financial Statements includes the land costing P50,000,000.00 and the building of P25,000,000,00 in which the business entity is situated, with an aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY 2021 is the 5th year of operation of AAA Corpo
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
Related questions
Question
AAA Corporation, a retailer, has a gross sales of P1,400,000,000.00
with a cost of sales of P60,000,000,00 and allowable deductions of
150,000,000.00 for the calendar year 2021. Its total assets of
P180,000,000.00 as of December 31, 2021 per Audited Financial
Statements includes the land costing P50,000,000.00 and the building
of P25,000,000,00 in which the business entity is situated, with an
aggregate amount of P75,000,000.00 as Fixed Assets. Assuming CY
2021 is the 5th year of operation of AAA Corporation
Required:
1. How much is the
taxable income?
2. How much is the tax due and
payable?
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