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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 1 question 168 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 168
Topic #: 1
[All IIA-CIA-Part3 Questions]

An organization has recorded the following profit and expenses:

Profit before interest and tax -
$200,000

Sales -
$2,300,000

Purchases of materials -
$700,000

Interest expenses -
$30,000
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

  • A. $34,000
  • B. $51,000
  • C. $60,000
  • D. $320,000
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Suggested Answer: D 🗳️

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3 months, 2 weeks ago
(2.3M - 700k)*20%
upvoted 4 times
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