The Smoky Corporation, a VAT-registered company, imported goods worth P 900,000 paying thereon the corresponding tax. The Smoky Corp. sold the goods at 25% mark-up to the Cloudy Corporation, a wholesaler, the latter paying a total of P_ including the VAT. Cloudy Corp, in turn disposed the goods at 30% mark-up to Thunder Co., a retailer, which paid a total of P_including the VAT. Finally, the goods were sold to Lionel, the ultimate consumer at 25% mark-up. (AlI VAT = 12%) REQUIRED: 1. Compute the value-added tax paid by Smoky Corp., Cloudy Corp., and Thunder Co., the VAT shouldered by Lionel. 2. Fill in the blanks above and show your computations.

The Smoky Corporation, a VAT-registered company, imported goods worth P 900,000 paying thereon the corresponding tax. The Smoky Corp. sold the goods at 25% mark-up to the Cloudy Corporation, a wholesaler, the latter paying a total of P_ including the VAT. Cloudy Corp, in turn disposed the goods at 30% mark-up to Thunder Co., a retailer, which paid a total of P_including the VAT. Finally, the goods were sold to Lionel, the ultimate consumer at 25% mark-up. (AlI VAT = 12%) REQUIRED: 1. Compute the value-added tax paid by Smoky Corp., Cloudy Corp., and Thunder Co., the VAT shouldered by Lionel. 2. Fill in the blanks above and show your computations.

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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