A retailer has a gross sale of P1,400,000 with cost of sales of P560,000 and allowable deductions of P150,000 November 2021. 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 December 2021, what is the possible tax implications? A retailer has a gross sales of P1,400,000 with cost of sales of P560,000 and allowabledeductions of P150,000 November 2021. 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 grosssales for December 2021, what is the possible tax implications? Explain.

Given In november, Gross sale =P1400000 Cost of sales=P560000 Its profit is: 1400000-560000 =840000…

Answered: s of P150,000 November 2021. It: porate…

Business

Accounting

s of P150,000 November 2021. It: porate Tax Rate is 25%. If the co ecember 2021, what is the poss

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...

See similar textbooks

Related questions

Q: Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after…

A: Tax means the mandatory payment made to government for the income earned. Bonus means the amount…

Q: For fiscal year 2021, ABC Corporation, a retailer, has PL4 billion in gross sales, P560 million in…

A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…

Q: CarRoq Corporation, a domestic dorporation a retailer of goods h gross sales of P 1,400,000,000 v…

A: The deduction can be taken OSD or itemized deductions. Although the amount of deduction is given so…

Q: Prey Ltd accountant has estimated current tax of P50 000 based on the current profit. The income tax…

A: Tax expense is the aggregate of current tax and deferred tax. The distinction between the…

Q: For its current tax year, Ilex Corporation has ordinary income of $250,000, a short-term capital…

A: As it is given in the question, Prior to 2018, the U.S. corporate tax rate structure had eight tax…

Q: Oak Corporation has the following general business credit carryovers: 2016 $20,000 2017 60,000 2018…

A: The general business tax credit is the total value of all the individual credits to be applied…

Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…

A: Answer: Given Sale to private entities subject to 12% Php 1,000,000Sale to private…

Q: DICK Corp has the following data for the year ended December 31, 2021:…

A: Government Owned and Controlled Corporation (GOCC) According to Philippines taxation rules…

Q: 9. Chicken Wings Company's profit before tax for the six months to September 30, 2021, was…

A: As per IAS 34 Interim Financial Reporting, while calculating income tax expenditure, tax rate should…

Q: Roscoe Company has a contract with its CEO to pay him a bonus during each of the years 2018 – 2021.…

A: GIVEN Roscoe Company has a contract with its CEO to pay him a bonus during each of the years 2018…

Q: Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has…

A: Step 1: A deduction is a reduction in the taxable income of an individual taxpayer or corporation…

Q: JKL Corp reports net income on its 2019 financial statements before income tax expense of P400,000.…

A: Taxable income is the income in which tax is to be applied. Income tax expense is the income tax…

Q: A company made an additional (incremental) income of $10.000 during the last week of the year. This…

A: Answer:- Effective tax rate:- The effective tax rate can be defined as the percentage of an…

Q: e Bron Corporation has the following information for 2021 taxable year: Quarter RCIT MCIT CWT…

A: Minimum corporate income tax (MCIT) is only eligible for carried forward in case there is MCIT…

Q: LLC Income Statement for the year ending 31December 2020 Net Sales OMR 25000 Cost of Goods…

A: A company pays tax on its profit after considering revenues from all sources and expenses at a rate…

Q: What is the regular corporate income tax if the corporation has a total allowable deduction of Php…

A: Corporate Income Tax Calculation of Corporate income tax in Philippines are much easier because the…

Q: A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after…

A: Let assume the income after bonus and tax = X Then the manager bonus will be = X * 0.10 = 0.1X The…

Q: 26. Kayo Na Company's income statement for the year ended December 31, 2019 shows pretax income of…

A: Solution: Taxable income = Pretax income - Excess of rent revenue as per books over tax - Excess of…

Q: Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell…

A: Income tax refund will be receivable of previous 2 year

Q: The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December…

A: Comprehensive income statement: It is a statement prepared to determine the total revenue, expenses,…

Q: Motown Memories Incorporated Statement of Operations at December 31, 2021 Net sales $ 50,000,000…

A: Part A: Current income tax expense or benefit for 2021 Income before income taxes $15,000,000…

Q: Dakdale Fashions, Inc. had $245,000 in 2018 taxable income. Using the tax schedule in Table 23 to…

A: Calculation of taxes as per Corporation Tax table 2018 Upto $ 100000= $ 22250…

Q: For fiscal year 2021, ABC Corporation, a retailer, has Pl.4 billion in gross sales, P560 million in…

A: The amount of income tax due is the difference between the net income received and the amount paid…

Q: What is the amount subject to business tax? 2 points Jackpruit, a seller of goods, had the following…

A: Bussiness taxable income is simply the net income earned during the taxable period i.e. taxable…

Q: Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit…

A: Tax accounting is the branch of accounting that deals with preparing and paying taxes. Individuals,…

Q: LENI Lugawan Corp has the following data for the year ended December 31, 2021:…

A: The company is a resident corporation hence domestic corporate income tax due will be income tax at…

Q: The Dakota Corporation had a 2021 taxable income of $20,000,000 from operations after all operating…

A: Tax refers to the amount charged by the government from the individual and companies on the income…

Q: Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To…

A: Answer: Correct option is d. $73,000

Q: full year effective tax rate will be 15%. Based on a first quarter 2020 income before tax of $200,

A: It is given the amount of before tax is $200,000 and the tax rate is 15%.

Q: Oak Corporation has the following general business credit carryovers: 2016 $7,250 2017 21,750 2018…

A: FIFO is the method of valuation of inventory in which the earliest inventory hold by the…

Q: Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000.…

A: Interim financial statements are those financial statements which are prepared in between two…

Q: In 2021 XY corporation is subject to MCIT has the following records Sales: net of discounts and…

A: Profit from business operation = Net sales - cost of sales = P9,500,000 - P5,000,000 = P4,500,000…

Q: In 2021, ABC Corporation which is subject to MCIT has the following records: Sales: net of…

A: The MCIT is 2% of the gross income of the corporation at the end of the taxable year. Computation…

Q: The company is planning to provide services to a client and receives $90,000 in year 2020. The…

A: Computation of cash flows if recorded profit in current year Profit prior to tax in current year…

Q: On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler…

A: VAT means the value added tax which is levied on sale and purchase . Vat paid on purchases is booked…

Q: Delta has interest receivable which has a carrying amount of $75,000 in its statement of financial…

A: Tax base is the amount attributed to that asset or liability for the tax purpose.

Q: One branch of Galssy Company earned an income of P560,000 before bonus and taxes for 2020. The…

Q: For fiscal year 2021, ABC Corporation, a retailer, has P1.4 billion in gross sales, P560 million in…

A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…

Q: Oak Corporation holds the following general business credit carryovers: 2016 $5,000 2017 15,000 2018…

A: The general business credit carryover refers to the non-refundable credit amount which is restricted…

Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…

A: GIVEN ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private…

Q: Shining Star LLC come Statement for the year ending 31 December 2019 t Sales OMR 25000 st of Goods…

A: Formulas: Net Income after tax = Net income before tax - Tax expenses Tax Expense = Net Income x…

Q: 1. How many units of Product Very Good would have to be sold in October 2021 in order to generate an…

A: solution : given Sales 200000 Variable cost 120000 Fixed cost 50000 Tax rate…

Q: Verse Company's income statement for the year ended December 31, 2020 shows pretax income of…

A: Permanent Difference = Interest on governmentbonds (exempt from tax) = P50,000 Temporary Difference…

Q: ABC Corporation has the following sales during the 1st quarter of 2019: Sale to private entities…

A: Input tax refers to the central tax (CGST), state tax (SGST), integrated tax (IGST), or union…

Q: Chocolate Pie Company's taxable income and other data for 2020 are presented below: Taxable…

A: Pretax financial income is the term which is defined as the net income earned through the business…

Q: In 2010, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume…

A: The below expression can be used to calculate the amount of tax: Tax amount = Net taxable Income *…

Q: A retailer has a gross sales of P1,400,000 with cost of sales of P560,000 and allowable deductions…

A: Tax is paid by the taxpayer on the taxable income. A taxpayer is the individual who has earned an…

Q: Buffalo Company has the following two temporary differences between its income tax expense and…

Q: FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M;…

A: Let's understand some basics Tax is a compulsory contribution to state revenue, levied by the…

Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…

A: The central tax (CGST), state tax (SGST), integrated tax (IGST), or union territory tax (UTGST)…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

A retailer has a gross sale of P1,400,000 with cost of sales of P560,000 and allowable deductions of P150,000 November 2021. 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 December 2021, what is the possible tax implications?

A retailer has a gross sales of P1,400,000 with cost of sales of P560,000 and allowable
deductions of P150,000 November 2021. 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 December 2021, what is the possible tax implications? Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
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?
1. How many units of Product Very Good would have to be sold in October 2021 in order to generate an net income after tax of P22,500?
1.Assuming EMERALD Corporation is engaged in exporting goods, as well as local selling of goods.EMERALD had the following data for 2021:Export Sales, net of VAT 2,000,000Local Sales, gross of VAT 1,120,000Input tax directly allocable to export sales 100,000Input tax directly allocable to local sales 40,000Input tax not allocable to any sales 30,000 Required: Determine the VAT payable, assuming input tax on zero rated sales are claim for taxrefund. 2.EMERALD Corporation has the following sales during the month:Sale to private entities subject to 12% - 100,000Sale to private entities subject to 0% - 100,000Sale of exempt goods - 100,000Sale to gov’t. subjected to 5% final VAT Withholding - 100,000Total sales for the month - 400,000The following input taxes were passed on by its VAT suppliers:Input tax on taxable goods (12%) - 5,000Input tax on zero-rated sales - 3,000Input tax on sale of exempt goods - 2,000Input tax on sale to government - 4,000Input tax on depreciable capital goodnot…
Assume that the Kelso Company operates in an industry for which NOL carryback is allowed. The Kelso Company had the following operating results: O $22,800. Year 2019 2020 2021 25% What is the income tax refund receivable? O $24,300 O $28,800. Income (loss) 54,000 57,000 (72,000) O 23,550. Tax rate 35% 30% Income tax 18,900first year of operations 17,100 0
Use the following information for Taco Swell, Incorporated, (assume the tax rate is 23 percent): 2020 2021 Sales $ 18,049 $ 18,858 Depreciation 2,406 2,514 Cost of goods sold 5,840 6,761 Other expenses 1,364 1,193 Interest 1,125 1,340 Cash 8,691 9,337 Accounts receivable 11,518 13,572 Short-term notes payable 1,704 1,671 Long-term debt 29,150 35,304 Net fixed assets 72,838 77,700 Accounts payable 6,287 6,730 Inventory 20,475 21,892 Dividends 2,129 2,344 For 2021, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
How many units of Product Excellence would have to be sold in October 2021 in order to generate an net income after tax of P22,500?
Ecare Berhad has the following income statement items for 2021: Revenue/Sales RM4,801,139 Finance costs/Interest expense RM293,938 Other items of income RM38,552 Cost of sales (COGS) RM3,917,144 Income tax expenses 35% of taxable income Dividend payment 40% of net profit What is the amount of the firm's earning before tax? Select one: a. RM628,609 b. RM590,057 c. RM408,596 d. RM883,995
1. What amount should Tokwa't Baboy Company report in its 2020 income statement as total provision for income tax? Assume a 30% tax rate.
Using the Corporated Federal Income Tax Rate (2006), calculate the federal income tax that should be paid by a company that has a gross income of $250,000, expenses of $70,000, and depreciation of $20,000 O a. $22,250 O b. $160,000 Oc $45,650 O d. $62,400
The following is the income statement belongs to Shining Star LLC for the year 31 December 2019: Shining Star LLC Income Statement for the year ending 31 December 2019 Net Sales OMR 25000 Cost of Goods Sold 7000 Gross Profit 18000 Operating Expenses 8000 Operating 10000 Income Other Income: Interest Income 4000 Net Income OMR 14000 If the company must pay an income tax expense on its profit and the tax rate is 30%, determine the Net income after-tax Select one: O a. OMR 10000 O b. OMR 9800 C. OMR 18200 O d. OMR 4200
1. soru At the end of 2019, The Business with 20% Corporate tax rate has Expenses: TL3.150.000 and Revenues: TL3.375.000. How much is the Tax Payable if the business prepaid income tax of TL15.000 during the accounting period? a.TL30.000 b.TL15.000 c.TL45.000 d.TL60.000