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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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. (All 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.
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