1. Juan is a resident citizen, earning purely business income for the taxable year:

Gross sales	P2,800,000
Cost of sales	1,200,000
Operating expenses	650,000

Determine the income tax due.

Group of answer choices

P95,000

P130,000

P700,000

P175,000

2. Juan is a resident citizen, earning purely business income for the taxable year:

Gross sales	P2,800,000
Cost of sales	1,200,000
Operating expenses	650,000

Determine the income tax due assuming Juan opted to be taxed using 8% preferential income tax.

Group of answer choices

P124,000

P204,000

P76,000

Not applicable