The information provided by ABC Manufacturing Corp. disclosed the following:

INCOME STATEMENT

Gross Sales – Php 50M

Cost of goods/sales:

Direct materials – Php 10M

Direct labor – Php 10M

Manufacturing overhead – Php 5M

Operating expenses:

Salaries and wages – Php 1M

Professional fees – Php 1M

Supplies – Php 1M

Depreciation – Php 1M

Training expenses* – Php 1M

 BALANCE SHEET

Assets – Php 20M

Liability – Php 5M

SHE – Php 15M

 *Requirements for an additional deduction on training expenses are complied with.

Compute the income tax.

b. 4,000,000

d. 4,875,000

c. 3,900,000

a. 5,000,000

Answer rating: 100% (QA)

Particulars Gross Sales a Less Cost of Goods Sold Direct Material 10000000 Direct ... View the full answer