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ure 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 P1,500,000 Gross receipt 750,000 2,250,000 Total sales receipt 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 1,150,000 Gross sale/ receipt Less: Cost of sale Gross Income Less: operating expenses 450,000 TAXABLE INCOME 700,000 Tax due On excess (700,000-400,000) * 25% 75,000 75,000 INCOME TAX DUE

ure 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 P1,500,000 Gross receipt 750,000 2,250,000 Total sales receipt 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 1,150,000 Gross sale/ receipt Less: Cost of sale Gross Income Less: operating expenses 450,000 TAXABLE INCOME 700,000 Tax due On excess (700,000-400,000) * 25% 75,000 75,000 INCOME TAX DUE

FINANCIAL ACCOUNTING
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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Further explaination about the tax due, how to compute and where did it get? see the photo below 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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