Taxation problem to solve: The Smoky Corporation, a VAT-registered company, imported goods worth P 900,000 paying thereon the corresponding tax. The…

Taxation problem to solve:

The Smoky Corporation, a VAT-registered company, imported goods worth P 900,000 paying thereon the corresponding tax. The Smoky Corp. sold the goods at 25% mark-up to the Cloudy Corporation, a wholesaler, the latter paying a total of P _____ including the VAT.

Cloudy Corp., in turn disposed the goods at 30% mark-up to Thunder Co., a retailer, which paid a total of P___including the VAT.

Finally, the goods were sold to Lionel, the ultimate consumer at 25% mark-up. (All VAT = 12%)

REQUIRED:

  1. Compute the value-added tax paid by Smoky Corp., Cloudy Corp., and Thunder Co., the VAT shouldered by Lionel.
  2.  Fill in the blanks above and show your computations.

Thanks in advance.

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