An Organization Has Recorded the Following Profit and Expenses: Profit

Multiple Choice

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