27. William has a bakery with total assets of P4,000,000 inclusive of a lot with a book value of P1,200,000. Gross income from sales of bread P300,000 Interest on promissory notes of retail store clients 12,000 Royalties on sale of recipe books 36,000 Dividend income from domestic stocks 10,000 Note that William's total asset i s P2,800,000, excluding the lot. Hence, William's business qualifies as a BMBE. If William obtained a certificate of authority to operate as a BMBE, the following items of operating income are exempt from income tax O a. P 300,000 O b. P 346,000 OC. P 312,000 O d. P 358,000

27. William has a bakery with total assets of P4,000,000 inclusive of a lot with a book value of P1,200,000. Gross income from sales of bread P300,000 Interest on promissory notes of retail store clients 12,000 Royalties on sale of recipe books 36,000 Dividend income from domestic stocks 10,000 Note that William's total asset i s P2,800,000, excluding the lot. Hence, William's business qualifies as a BMBE. If William obtained a certificate of authority to operate as a BMBE, the following items of operating income are exempt from income tax O a. P 300,000 O b. P 346,000 OC. P 312,000 O d. P 358,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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