ABC Corporation reported the following income and expenses from business for year 2018: Cash sales P 2,000,000 Sales on account 520,000 Advances from customers 400,000 Cost of sales 1,200,000 Operating expenses (30% prepayments) 600,000 How much is the taxable income for year 2018?

ABC Corporation reported the following income and expenses from business for year 2018: Cash sales P 2,000,000 Sales on account 520,000 Advances from customers 400,000 Cost of sales 1,200,000 Operating expenses (30% prepayments) 600,000 How much is the taxable income for year 2018?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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Question

ABC Corporation reported the following income and expenses from business for year 2018:

Cash sales P 2,000,000

Sales on account 520,000

Advances from customers 400,000

Cost of sales 1,200,000

Operating expenses (30% prepayments) 600,000

How much is the taxable income for year 2018?

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