For Questions 13-15 ECQ Incorporated imported an article from South Korea. The invaice value of the imported article was $50,000 ($1=P50). The following were incurred in connection with the importation: | Bank charges in connection with the importation of goods Expenses in opening letters of credits Interest paid on trust receipts issued by banks for imported goods Wharfage dues Arrastre charges Brokerage fees Interest charges on loans secured to finance importation Facilitation fee P150,000 100,000 15,000 70,000 80,000 25,000 50,000 10,000 The imported article was subject to P500,000 customs duties and to P300,000 excise tax. After the release from the Bureau of Customs, ECQ Incorporated paid P50,000 (net of VAT) for trucking to a warehouse in Quezon City. It also paid warehousing rent of P80,000, net of VAT. 13. How much are the total charges prior to release from Customs custody?
For Questions 13-15 ECQ Incorporated imported an article from South Korea. The invaice value of the imported article was $50,000 ($1=P50). The following were incurred in connection with the importation: | Bank charges in connection with the importation of goods Expenses in opening letters of credits Interest paid on trust receipts issued by banks for imported goods Wharfage dues Arrastre charges Brokerage fees Interest charges on loans secured to finance importation Facilitation fee P150,000 100,000 15,000 70,000 80,000 25,000 50,000 10,000 The imported article was subject to P500,000 customs duties and to P300,000 excise tax. After the release from the Bureau of Customs, ECQ Incorporated paid P50,000 (net of VAT) for trucking to a warehouse in Quezon City. It also paid warehousing rent of P80,000, net of VAT. 13. How much are the total charges prior to release from Customs custody?
Century 21 Accounting General Journal
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ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter24: Recording International And Internet Sales
Section: Chapter Questions
Problem 1CP
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Question
![For Questions 13-15
ECQ Incorporated imported an article from South Korea. The invoice value of the imported article
was $50,000 ($1=P50). The following were incurred in connection with the importation:
Bank charges in connection with the importation of goods
Expenses in opening letters of credits
Interest paid on trust receipts issued by banks for imported goods
Wharfage dues
Arrastre charges
Brokerage fees
Interest charges on loans secured to finance importation
Facilitation fee
P150,000
100,000
15,000
70,000
80,000
25,000
50,000
10,000
The imported article was subject to P500,000 customs duties and to P300,000 excise tax. After the
release from the Bureau of Customs, ECQ Incorporated paid P50,000 (net of VAT) for trucking to a
warehouse in Quezon City. It also paid warehousing rent of P80,000, net of VAT.
13. How much are the total charges prior to release from Customs custody?
a. P500,000
b. P490,000
c. P440,000
d. P425,000
14. How much is the VAT on importation?
a. P456,000
b. P454,800
c. P448,800
d. PO
15. Assuming the imported article was sold for P5,500,000, net of VAT, how much was the VAT
payable?
a. P660,000
b. P217,200
c. P211,200
d. P195,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ab68a45-6797-4eec-8941-6e16adad2232%2F0607a1ff-d0b9-455d-a70e-36767a57102e%2Fkcyzzh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For Questions 13-15
ECQ Incorporated imported an article from South Korea. The invoice value of the imported article
was $50,000 ($1=P50). The following were incurred in connection with the importation:
Bank charges in connection with the importation of goods
Expenses in opening letters of credits
Interest paid on trust receipts issued by banks for imported goods
Wharfage dues
Arrastre charges
Brokerage fees
Interest charges on loans secured to finance importation
Facilitation fee
P150,000
100,000
15,000
70,000
80,000
25,000
50,000
10,000
The imported article was subject to P500,000 customs duties and to P300,000 excise tax. After the
release from the Bureau of Customs, ECQ Incorporated paid P50,000 (net of VAT) for trucking to a
warehouse in Quezon City. It also paid warehousing rent of P80,000, net of VAT.
13. How much are the total charges prior to release from Customs custody?
a. P500,000
b. P490,000
c. P440,000
d. P425,000
14. How much is the VAT on importation?
a. P456,000
b. P454,800
c. P448,800
d. PO
15. Assuming the imported article was sold for P5,500,000, net of VAT, how much was the VAT
payable?
a. P660,000
b. P217,200
c. P211,200
d. P195,600
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