Assume that the withholding tax is calculated at the invoice payment time and the withholding tax
rate is 20%. Identify three statements with the correct withholding tax calculations. (Choose three.)
A.
invoice amount $500, withholding tax $100 (20% of $500)
B.
invoice amount $400, prepayment invoice for $200, withholding tax $4 (20% of $200)
C.
invoice amount $600, prepayment invoice for $100, withholding tax $12 (20% of $600)
D.
invoice amount $500, prepayment invoice for $250, withholding tax $50 (20% of $500 – $250)
E.
invoice amount $600, prepayment invoice for $100, withholding tax $100 (20% of $600 – $100)