This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 1: Identify the relevant income for Overseas Communication Tax (OCT). The Overseas Communication Tax (OCT) is imposed on gross receipts from overseas calls. From the given data: Gross receipts – overseas calls = P20,000,000 Step 2: Apply the Overseas Communication Tax (OCT) rate. The standard OCT rate is 10%. Overseas Communication Tax = Gross receipts from overseas calls × OCT Rate Overseas Communication Tax = P20,000,000 × 10\% Overseas Communication Tax = P20,000,000 × 0.10 Overseas Communication Tax = P2,000,000 The calculated OCT is P2,000,000. This matches option A. The final answer is A. 2,000,000. That's 2 down. 3 left today — send the next one.