Practice question
A manufacturer has its principal office in City A and its sole factory in City B. P 10 million in sales are properly recorded in the principal office and are within Section 150(b)’s allocation; there is no plantation or other factory complicating the facts. How is that sales base allocated?
- P 3 million to City A and P 7 million to City B
- P 10 million to each city
- P 7 million to City A and P 3 million to City B
- All to the owner’s hometown
- None to either city
Legal references
- RA7160, Sections132,143,146 and150: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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