A retailer has a gross sales of P1,400,000 with cost of sales of P560,000and allowable deductions of P150,000 November2021. Its total assets of P180,000as of November 30, 2021. Corporate Tax Rate is 25%. If the company can realize25% increase in its gross sales for December2021, what is the possible tax implication?

Corporate tax rate = 25% Allowable deductions = P150,000 for November Allowable deductions =…

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what is the possible tax implication?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 3P

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Question

A retailer has a gross sales of P1,400,000 with cost of sales of P560,000
and allowable deductions of P150,000 November2021. Its total assets of P180,000
as of November 30, 2021. Corporate Tax Rate is 25%. If the company can realize
25% increase in its gross sales for December2021, what is the possible tax implication?

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