Engineering Board Exam Reviewer · Income Taxes and After-Tax Analysis · easy
A firm has revenue of P2,000,000, operating expenses of P900,000, and depreciation of P300,000. At a 30% tax rate, find the income tax.
- P330,000
- P240,000
- P600,000
- P510,000
Answer
B. P240,000
Solution
Taxable income =2,000,000-900,000-300,000=P800,000. Tax =0.30(800,000)=P240,000.
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