Pure Self- employment Page 85 Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her gross receipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the 8% income tax rate. Compute for Arch. Adira's income tax liability for 2018. P 1,500,000 750,000 2,250,000 250,000 Gross sale Gross receipt Total sales receipt Less: Amount allowed as deduction under Sec 24(A)(2)(b) TAXABLE INCOME 2,000,000 If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assuming that his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000? Gross sale/ receipt P 2,250,000 Less: Cost of sale 1,100,000 1,150,000 Gross Income Less: operating expenses 450,000 700,000 TAXABLE INCOME Tax due On excess (700,000-400,000) 25% 75,000 INCOME TAX DUE 75,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Where tax due get and how did they get excess (700,000-400,000)*25%. See photo for information.

Pure Self- employment
Page 85
Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her gross
receipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the
8% income tax rate. Compute for Arch. Adira's income tax liability for 2018.
Gross sale
P 1,500,000
Gross receipt
750,000
Total sales receipt
2,250,000
Less: Amount allowed as deduction under Sec 24(A)(2)(b)
250,000
TAXABLE INCOME
2,000,000
If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assuming
that his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000?
P 2,250,000
1,100,000
Gross sale/ receipt
Less: Cost of sale
Gross Income
1,150,000
Less: operating expenses
450,000
700,000
TAXABLE INCOME
Tax due
On excess (700,000-400,000) * 25%
75,000
INCOME TAX DUE
75,000
Transcribed Image Text:Pure Self- employment Page 85 Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her gross receipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the 8% income tax rate. Compute for Arch. Adira's income tax liability for 2018. Gross sale P 1,500,000 Gross receipt 750,000 Total sales receipt 2,250,000 Less: Amount allowed as deduction under Sec 24(A)(2)(b) 250,000 TAXABLE INCOME 2,000,000 If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assuming that his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000? P 2,250,000 1,100,000 Gross sale/ receipt Less: Cost of sale Gross Income 1,150,000 Less: operating expenses 450,000 700,000 TAXABLE INCOME Tax due On excess (700,000-400,000) * 25% 75,000 INCOME TAX DUE 75,000
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