Where tax due get and how did they get excess (700,000-400,000)*25%. See photo for information. Pure Self- employmentPage 85Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her grossreceipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the8% income tax rate. Compute for Arch. Adira's income tax liability for 2018.Gross saleP 1,500,000Gross receipt750,000Total sales receipt2,250,000Less: Amount allowed as deduction under Sec 24(A)(2)(b)250,000TAXABLE INCOME2,000,000If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assumingthat his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000?P 2,250,0001,100,000Gross sale/ receiptLess: Cost of saleGross Income1,150,000Less: operating expenses450,000700,000TAXABLE INCOMETax dueOn excess (700,000-400,000) * 25%75,000INCOME TAX DUE75,000

Taxable income: Taxable income is the value computed after adjusting all the applicable deductions…

Pure Self- employment Page 85 Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her gross receipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the 8% income tax rate. Compute for Arch. Adira's income tax liability for 2018. P 1,500,000 750,000 2,250,000 250,000 Gross sale Gross receipt Total sales receipt Less: Amount allowed as deduction under Sec 24(A)(2)(b) TAXABLE INCOME 2,000,000 If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assuming that his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000? Gross sale/ receipt P 2,250,000 Less: Cost of sale 1,100,000 1,150,000 Gross Income Less: operating expenses 450,000 700,000 TAXABLE INCOME Tax due On excess (700,000-400,000) 25% 75,000 INCOME TAX DUE 75,000

Pure Self- employment Page 85 Architect adira offers architectural design services. She also the sole proprietor of Aza at supplies store. In 2018 her gross receipts form services amounted to P 750,000 while her gross sale from the store was P 1,500,000. She has availed of the 8% income tax rate. Compute for Arch. Adira's income tax liability for 2018. P 1,500,000 750,000 2,250,000 250,000 Gross sale Gross receipt Total sales receipt Less: Amount allowed as deduction under Sec 24(A)(2)(b) TAXABLE INCOME 2,000,000 If architect Adira (above) did not opt to be taxed at the 8% income tax rate, what will be her income tax due assuming that his 2018 cost of sales was p 1,100,000 and the operating expenses P 450,000? Gross sale/ receipt P 2,250,000 Less: Cost of sale 1,100,000 1,150,000 Gross Income Less: operating expenses 450,000 700,000 TAXABLE INCOME Tax due On excess (700,000-400,000) 25% 75,000 INCOME TAX DUE 75,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 84TA

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