IIA Exam IIA-CIA-Part3-3P Topic 2 Question 34 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 34
Topic #: 2

[All IIA-CIA-Part3-3P Questions]

An organization has recorded the following profit and expenses:

Profit before interest and tax

$200,000

Sales

$2,300,000

Purchases of materials

$700,000

Interest expenses

$30,000

If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following

is the amount of VAT that the organization has to pay?

A$34,000

B$51,000

C$60,000

D$320,000

Show Suggested Answer

Suggested Answer: D

by Audra at Dec 11, 2023, 03:01 AM

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Tamekia

6 days ago

I bet the answer is C) $60,000. That just feels right, but I better double-check my math just to be sure.

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Melissia

12 days ago

Hmm, the VAT rate is 20%, so the answer has to be in that ballpark. Let me work through this step-by-step.

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Raylene

16 days ago

I'm leaning towards C) $60,000 because of the VAT and corporate tax rates.

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Arlyne

18 days ago

I disagree, I believe the correct answer is B) $51,000.

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Margarita

18 days ago

Wow, this looks like a tricky one! I'm going to have to break down the numbers carefully to get the right answer.

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Bo

6 days ago

User 1: I think we need to calculate the VAT based on the sales amount.

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Mickie

21 days ago

I think the answer is A) $34,000.

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