The following case isapplicable to 4 consecutivequestions: Nueva EcijaCompany received a bill for27,440 from a non-VAT serviceprovider. The payment for theservice is subject to 2%creditable withholding tax.What is the deductibleexpense if Nueva Ecija is anon-VAT taxpayer? *O 26,89127,44028,000 If Nueva Ecija is a non-VATtaxpayer, what respectively isthe withholding tax and theamount of cash to be paid byNueva Ecija to the serviceprovider? *0; 27,440548.80; 26,891.20560; 27,440537.82; 26,353.18If Nueva Ecija is a VATtaxpayer, what is thedeductible expense?26,89127,44028,000

SOLUTION VAT IS THE CONSUMPTION TAX ASSESSED ON THE VALUE ADDED ON GOODS AND SERVICES.

The following case is applicable to 4 consecutive questions: Nueva Ecija Company received a bill for 27,440 from a non-VAT servic provider. The payment for the service is subject to 2% creditable withholding tax. What is the deductible expense if Nueva Ecija is a non-VAT taxpayer? *

The following case is applicable to 4 consecutive questions: Nueva Ecija Company received a bill for 27,440 from a non-VAT servic provider. The payment for the service is subject to 2% creditable withholding tax. What is the deductible expense if Nueva Ecija is a non-VAT taxpayer? *

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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