source: book of Income Taxation 'made easy' by Win Ballada pg. 155

Minimum Corporate Income Tax MCIT - of 1% of the gross income as of the end of the taxable year imposed upon any domestic and resident foreign corporation beginning the fourth (4th) taxable year immediately following the taxable year in which such corporation commenced its business operations. The MCIT shall be imposed whenever: a. Such corporation has zero or negative income b. The amount of MCIT is greater than the NIT New Minimum Corporate Income Tax - MCIT The MCIT for both domestic and resident foreign corporations has been decreased to 1% from July 1, 2020 until June 30, 2023.Question 1 of 1 10 Points Abuel Corporation has been operating since January 1, 20018. Data pertinent to its operations covering 2014 to 2016 are as follows: 2014 2015 2016 Gross sales P 3,080,000 4,100,000 5,200,000 Sales return and allowances 80,000 100,000 200,00 I} Cost of sales 1,500,000 2,000,000 2,500,00 Operating expenses 1,450,000 1,900,000 2,100,00 Determine the appropriate income tax of Abuel Corporation. Ans war with text an d/or a trachmen ts.- Pro-forma computation - MCIT Gross Sales/Gross receipts XXX Less: Sales Return and Allowances XXX Sales Discount XXX XXX Net Sales XXX Less: Cost of Good Sold/Cost of service XXX Gross Income XXX MCIT Rate 2% Minimum Corporate Tax XXX