Question

Querrey Incorporated and Ronno Incorporated conduct business in a foreign country that imposes a 3 percent VAT. Querrey produces entertainment videos at a $6 material cost per unit and sells the videos to Ronno for $9 per unit. Ronno sells the videos at retail for $10 per unit. This year, the combined efforts of Querrey and Ronno resulted in sales of 12.4 million videos to the public. Required: Compute the VAT for each corporation. (Enter your answers in dollars not in millions of dollars.)

Answer 1

The answer is The amount of VAT payable to both the business are:

VAT payable by Querrey Inc. is $11,16,000

VAT payable by Ronno Inc. is $3,72,000

What is the computation of VAT payable?

• For Querrey Inc.Sales Revenue = 12, 400, 000units* $9F = $11, 16, 00, 000
• VAT on Sales = $11, 16,00,000* 3%
• $33,48,000
• VAT on Material 12, 400, 000units * $6: = $22, 32,000
• For Ronno Inc.Sales Revenue = 12, 400, 000units $10= $12, 40, 00, 000
• VAT on Sales = $12, 40,00,000* 3%
• $37,20,000
• VAT on Purchase = 12,400,000units* $9= $33, 48,000

To learn more about VAT payable visit:

brainly.com/question/20628016

#SPJ4