07690-BUSINESS TAXATIONOn January 1, 2018, David, a VAT-registered person reported thefollowing purchases (all VAT-inclusive) for business use: Merchandiseinventory - P420,000; Store Equipment - P588,000 (4-year useful life);Transportation Equipment- P840,000 (8-year useful life). The Januaryaggregate cost for purposes of the P1M threshold on purchases of capitalgoods is how much? (answer must all be numbers, no peso sign, nocommas, no decimals and no extra spaces between numbers)Answer

According to Internal Revenue services (IRS) in Philippines which are provided the guidelines for…

Answered: On January 1, 2018, David, a…

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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1. Pepper Inc. reports according to GAAP and uses LIFO method to account for inventories. Tax rate is 25%. Pepper reports the following data (in USD). 2019 19 500 4 200 9 540 2 100 2020 Costs of goods sold Net income Inventories LIFO reserve 23 500 5 000 10 300 2 200 If Pepper would report according to FIFO method, what would be the reported inventories, net income and COGS amount (show your calculations)? Please comment on why LIFO method could be least preferable (from the company's, government's point of view?
16. Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? a. P1,920,000 b. P2,240,000 c. P2,500,000 d. P1,980,000
Combate Company reported total purchases of P3,200,000 in its accrual basis financial statement on December 31, 2020. Additional information revealed the following: Accounts payable, December 31, 2019 P900,000 Accounts payable- December 31, 2020 1,250,000 What is the amount of purchases under the cash basis for the year ended December 31, 2020? A.P4,100,000 B. P4,450,000 C. P2,850,000 D. P3,550,000
10. Pandoy Inc. reported purchases of P2,500,000 in its cash basis incomestatement during 2020. Additional information revealed the balance ofaccounts payable on January 1, 2020 is P600,000 and on December 31,2020 is P800,000.How much is the purchases under accrual basis ofaccounting? A. P2,300,000B. P2,500,000C. P2,700,000D. P3,900,000E. answer not given
3. Fast Trak Company, a domestic common carrier engaged in the transport of goods and cargoes provided the following data for 2018 taxable year: P 2,400,000 Gross receipts, 2018 Receivables, Dec. 31, 2017 Receivables, Dec. 31, 2018 500,000 600,000 Operating expenses 1,250,000 Required: Determine the following: 1. The business tax due of Fast Track Company assuming the company is a non-vat registered entity. 2. The business tax due of Fast Track assuming the company is a vat registered entity.
Heddi Corporation, a VAT registered dealer of appliances, has the following data for the first quarter of 2023:Sales, total invoice value, P6,921,600Purchases, net of input taxes, P5,500,000Sales returns (based on total invoice value), P224,000Purchases returns, gross of taxes, P336,000Deferred input taxes (carried over from the third quarter of the current year), P9,500How much is the value-added tax still due for the last quarter of the current year using the 12% VAT rate?
20. Di Ka Mahal Company reported total purchases of P2,500,000 in its cash basis financial statements on December 31, 2020. Additional information revealed the following: Accounts payable, January 1, 2020, P600,000 and Accounts payable, December 31, 2020, P800,000. Under the accrual basis, how much is the total purchases for the year ended December 31, 2020? Choices: P2,700,000 P2,300,000 P3,900,000 P2,500,000
Yeri Corp. reported the following data for 2019. Total net sales – P4,000,000; Goods purchased – P2,400,000; Beginning Inventory – P400,000; Ending Inventory – P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables – P120,000; required: Using Accrual Basis, compute the total income subject to income tax.
Wendy Corp. reported the following data for 2019. Total net sales -P4,000,000; Goods purchased – P2,400,000; Beginning Inventory – P400,000; Ending Inventory – P600,000; 1 year advance rent received amounting to P60,000 to be applied in 2020; P80,000 total interest income from customers promissory note earned--P60,000 of this was collected; Unrealized foreign exchange gains from foreign currency receivables – P120,000; REQUIRED: 1. Using cash basis, compute the total income subject to income tax.
Good Truck Berhad Income Statement for The Year ending 31 Dec 2019 (RM in millions) Net sales 8,450 Less: Cost of goods sold 7,240 Less: Depreciation 400 Earnings before interest and taxes 810 Less: Interest paid 70 Taxable Income 740 Less: Taxes 259 Net income 481 Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and Equities Cash 140 Accounts payable 1,120 Accounts rec. 780 Long-term debt 1,210 Inventory 1,520 Common stock 3,000 Total 2,440 Retained earnings 710 Net fixed assets 3,600 Total assets 6,040 Total liabilities & equity 6,040 You are required to calculate: f. Debt ratio g. Time Interest Earned h. Net profit margin…
Good Truck Berhad Income Statement for The Year ending 31 Dec 2019 (RM in millions) Net sales 8,450 Less: Cost of goods sold 7,240 Less: Depreciation 400 Earnings before interest and taxes 810 Less: Interest paid 70 Taxable Income 740 Less: Taxes 259 Net income 481 Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and Equities Cash 140 Accounts payable 1,120 Accounts rec. 780 Long-term debt 1,210 Inventory 1,520 Common stock 3,000 Total 2,440 Net fixed assets 3,600 Retained earnings 710 Total assets 6,040 Total liabilities & equity 6,040…
T&T restaurant, non-VAT registered, had gross receipts during the year which amount to P2,500,000. If the year of operation is 2019, * Subject to Output VAT of P300,000 Subject to Output VAT of P267,854 Subject to Percentage tax of P75,000 Subject to Percentage on the P2,000,000

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