1. A company operating since 2010, reported its income statement for the year 2018 as follows: Sales ..3,300,000 Cost of sales. Gross income. 1.720.000 .1,580,000 Operating Expenses.. Net Income. 1.100,000 480,000 If the company is a sole proprietorship and using the 8% Gross Receipts Tax Income Tax is: a. 126,400 b. 38,400 c. 264,000 d. Answer not given - 50,000

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
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Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...
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1. A company operating since 2010, reported its income statement for the year 2018 as follows:
Sales
.3,300,000
Cost of sales.
-1.720.000
1,580,000
1.100.000
.480,000
Gross income.
Operating Expenses.
Net Income.
If the company is a sole proprietorship and using the 8% Gross Receipts Tax Income Tax is:
a. 126,400
b. 38,400
C. 264,000
d. Answer not given - 50,000
2. Mr. De Goma, resident citizen and working in a company reported the following for the year:
Salary .
Overtime Pay..
13th month Pay.
285,000
*... 40,000
15,000
Bonus Pay.
120,000
455,000
Total.
Income tax is:
a. 91,000
b. 43,750
C. 41,000
d.
24,000
Transcribed Image Text:1. A company operating since 2010, reported its income statement for the year 2018 as follows: Sales .3,300,000 Cost of sales. -1.720.000 1,580,000 1.100.000 .480,000 Gross income. Operating Expenses. Net Income. If the company is a sole proprietorship and using the 8% Gross Receipts Tax Income Tax is: a. 126,400 b. 38,400 C. 264,000 d. Answer not given - 50,000 2. Mr. De Goma, resident citizen and working in a company reported the following for the year: Salary . Overtime Pay.. 13th month Pay. 285,000 *... 40,000 15,000 Bonus Pay. 120,000 455,000 Total. Income tax is: a. 91,000 b. 43,750 C. 41,000 d. 24,000
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