Hayabusa is a resident citizen earningcompensation and business income for 2021as follows:Compensation income P1,400,000Gross sales 2,800,000Cost of sales 1,200,000Operating expenses 650,000The business is not vat-registered.1. Determine the income tax due assumingHayabusa opted to be taxed using 8%preferential income tax.2. Determine the total tax due of Hayabusaassuming the business is a vat- registeredentity

working note tax computation. 250,000 tax rate 0% 250,000 to 400,000 tax rate 20% 400,000 to…

Answered: Hayabusa is a resident citizen earning…

Business

Accounting

Hayabusa is a resident citizen earning compensation and business income for 2021 as follows:

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 51P

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Question

Hayabusa is a resident citizen earning
compensation and business income for 2021
as follows:
Compensation income P1,400,000
Gross sales 2,800,000
Cost of sales 1,200,000
Operating expenses 650,000
The business is not vat-registered.
1. Determine the income tax due assuming
Hayabusa opted to be taxed using 8%
preferential income tax.
2. Determine the total tax due of Hayabusa
assuming the business is a vat- registered
entity

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