PROBLEM D. SABINI operates a merchandising business. His capital amounted to P3,600,000 at the end of 2020. Based on his 2021 accounting records, Owner's, Capital increased by 15%. His withdrawals equaled 70% of the increase in capital. Capital contributions equaled to 1/4 of beginning capital. Tax rate is 20% while gross profit rate is 35%. A breakdown of his expenses for 2021 showed the following: cost of goods sold - 2,600,000; ; selling expense 925,000; other expense- 25,000; interest expense 35,000 and other income - 25,000.

PROBLEM D. SABINI operates a merchandising business. His capital amounted to P3,600,000 at the end of 2020. Based on his 2021 accounting records, Owner's, Capital increased by 15%. His withdrawals equaled 70% of the increase in capital. Capital contributions equaled to 1/4 of beginning capital. Tax rate is 20% while gross profit rate is 35%. A breakdown of his expenses for 2021 showed the following: cost of goods sold - 2,600,000; ; selling expense 925,000; other expense- 25,000; interest expense 35,000 and other income - 25,000.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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