Because the company is in a start-up stage, corporate management feels that the East sales territory is creating too much of a cash drain on the company and it should be eliminated. If East is discontinued, one sales manager (whose salary is P40,000 per year) will be relocated to the West territory. By how much would Opal’s income decrease if the East territory is eliminated?

Because the company is in a start-up stage, corporate management feels that the East sales territory is creating too much of a cash drain on the company and it should be eliminated. If East is discontinued, one sales manager (whose salary is P40,000 per year) will be relocated to the West territory. By how much would Opal’s income decrease if the East territory is eliminated?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 4CE

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