On 2020, Jetro Incorporated, the supplier of Louisville Corporation sold merchandise item worth P504,000 VAT inclusive. All the purchases of Louisville were sold to Divine Corporation with a selling price of P850,000 VAT exclusive. All parties are VAT registered and the sold items are applicable to recognition of 12% VAT?

 

Assume this was the only sale and purchase of Louisville Corporation and there is no inventory beginning nor ending, how much is the gross profit of Louisville Corporation?