A. P100,000B. P180,000C. P250,000D. P170,000 ABC Corporation has the following sales during the month:a. Sale to private entities subject to 12% vatP1,000,000b. Sale to private entities subject to 0% vat1,000,000c. Sale to government subjected to 5% final withholding vat1,000,000d. Sale of goods exempt from vat1,000,000The following input taxes were passed on by its vat suppliers:i. On taxable goods (12%)50,000ii. On zero rated sales30,000i. On sale to the government40,000iv. On sale of exempt goods20,000v. On depreciable capital goods not attributable to any specificactivity (monthly amortization)200,000The total creditable input vat

Tax refers to the compulsory charge levied on the sum value of money gained by an entity by the…

Answered: Sale to private entities subject to 12…

Sale to private entities subject to 12 Sale to private entitices subject to 0' Sale to government subjected to 5' Sale of goods cxcmnnt from at

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

A. P100,000

B. P180,000

C. P250,000

D. P170,000

ABC Corporation has the following sales during the month:
a. Sale to private entities subject to 12% vat
P1,000,000
b. Sale to private entities subject to 0% vat
1,000,000
c. Sale to government subjected to 5% final withholding vat
1,000,000
d. Sale of goods exempt from vat
1,000,000
The following input taxes were passed on by its vat suppliers:
i. On taxable goods (12%)
50,000
ii. On zero rated sales
30,000
i. On sale to the government
40,000
iv. On sale of exempt goods
20,000
v. On depreciable capital goods not attributable to any specific
activity (monthly amortization)
200,000
The total creditable input vat

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