X, operates a restaurant in San Mateo. The restaurant provides delicious foods and drinks to various customers at a very low price. In 2018, X has a total sales of 3,500,000 (500,000 are still on credit) ; while the cost of sales and expenses is 1,000,000. Can X avail the 8% optional tax rate? a. Yes b. No, because his sales exceeded 3M c. No, because his sales, excluding on credit is 3M d. No, because he sells VAT exempt goods e. None of the above
X, operates a restaurant in San Mateo. The restaurant provides delicious foods and drinks to various customers at a very low price. In 2018, X has a total sales of 3,500,000 (500,000 are still on credit) ; while the cost of sales and expenses is 1,000,000. Can X avail the 8% optional tax rate? a. Yes b. No, because his sales exceeded 3M c. No, because his sales, excluding on credit is 3M d. No, because he sells VAT exempt goods e. None of the above
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 18P
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X, operates a restaurant in San Mateo. The restaurant provides delicious foods and drinks to various customers at a very low price. In 2018, X has a total sales of 3,500,000 (500,000 are still on credit) ; while the cost of sales and expenses is 1,000,000. Can X avail the 8% optional tax rate?
a. Yes
b. No, because his sales exceeded 3M
c. No, because his sales, excluding on credit is 3M
d. No, because he sells VAT exempt goods
e. None of the above
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