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Mr. Sanchez earned an annual compensation of ?2,000,000 in 2024. Aside from employment income, he...

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Accounting

Mr. Sanchez earned an annual compensation of ?2,000,000 in 2024. Aside from employment income, he owns a convenience store, with gross sales of ?2,500,000. His cost of sales and operating expenses are ?1,350,000 and ?150,000, respectively, and with non-operating income of ?200,000.



A. How much is his income tax due for 2024 if he opted to be taxed at 8% income tax rate of his gross sales for his income from business?

B. How much is his income tax due for 2024 if he did non opt for the 8% income tax rate based on gross sales/gross receipts and other non-operating income?

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