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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Deja

1 months ago

The corporate tax rate is 30%, so the answer must be in the 30s, right? Oh, wait, that's not how this works...

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Nancey

1 days ago

A) $34,000

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Danica

1 months ago

This is making my head spin! At least the multiple-choice options give me a fighting chance. Time to put on my calculator hat.

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Herman

8 days ago

Then we can subtract the VAT amount from the profit before interest and tax to find the final answer.

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Ty

11 days ago

Once we have the total sales, we can apply the 20 percent VAT rate to get the VAT amount.

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Bobbie

24 days ago

I think we need to calculate the total sales first before we can figure out the VAT amount.

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Tamekia

2 months 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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Felice

1 days ago

I believe it's C) $60,000. I'll check my calculations to confirm.

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Marylin

6 days ago

I'm pretty sure it's A) $34,000. Let me do the math one more time.

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Anika

1 months ago

I think the answer is B) $51,000. Let me calculate it again.

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Melissia

2 months 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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Laurel

24 days ago

B) $51,000

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Rhea

25 days ago

A) $34,000

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Cletus

28 days ago

B) $51,000

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Lawana

1 months ago

A) $34,000

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Raylene

2 months ago

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

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Arlyne

2 months ago

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

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Margarita

2 months 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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Sommer

1 months ago

Lucia: That makes sense, let's double check our calculations before finalizing.

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Madalyn

1 months ago

User 3: So, the amount of VAT that the organization has to pay is $51,000.

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Lucia

1 months ago

User 2: Yes, we should also consider the VAT rate and corporate tax rate.

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Bo

2 months ago

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

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Mickie

2 months ago

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

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