Maria is a resident Citizen, non vat tax payer. taxable period:2020 Gross sales php 2,500,000 other operating income 200,000 non-operating income 100,000 cost of sales 1,000,000 operating expenses 500,000 Compute for the 8% optimal tax. show computation 180,000 196,000 204,000 224,000

Maria is a resident Citizen, non vat tax payer. taxable period:2020 Gross sales php 2,500,000 other operating income 200,000 non-operating income 100,000 cost of sales 1,000,000 operating expenses 500,000 Compute for the 8% optimal tax. show computation 180,000 196,000 204,000 224,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 30P

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Maria is a resident Citizen, non vat tax payer.

taxable period:2020
Gross sales	php 2,500,000
other operating income	200,000
non-operating income	100,000
cost of sales	1,000,000
operating expenses	500,000

Compute for the 8% optimal tax. show computation

180,000
196,000
204,000
224,000

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