A price of ₱560 already includes 12% value-added tax. What is the price before VAT?
Correct answer: B. ₱500
The VAT-inclusive price is 112% of the base price, so base price = 560 ÷ 1.12 = ₱500. Subtracting 12% of ₱560 (giving ₱492.80) is wrong, because VAT is computed on the base price, not on the total.
hard