1. Queen Bay operates Price Tag store where she sells factory overrun at lower prices than in...
Question:
1. Queen Bay operates Price Tag store where she sells factory overrun at lower prices than in shopping malls. In addition to her store, she also provides professional IT consultancy services by suggesting to clients the best programs for their businesses. During the year, her total gross sales was P420, 000, gross receipts was P 1, 500, 000. Cost of Sales was P200, 000. Cost of Receipts was P1, 000, 000.
a. If Queen is VAT registered, what is her liability?
b. Would you answer be the same if she was not VAT registered? What is her tax liability.
2) Ferdinand operates a restaurant under the trade name Lapu-Lapu’s, a Japanese style restaurant for the Filipino palette. His books for the period show:
a. Admin Expenses – P200, 000
b. Gross Income – P1,500, 000 (net of Cost of Services of P419, 500)
What is Ferdinand’s tax liability?
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher