Big-Mart Store (BMS) offered a promotion whereby each walk-in customer received a packet of tissue paper free of charge. The cost and usual selling price of each packet is RMB0·5 and RMB1 respectively. In February 2018, BMS gave 10,000 packets of tissue paper to walk-in customers.
What are the deemed sales, and deemed promotional expenses of BMS for enterprise income tax (EIT) purposes, in February 2018?
You should ignore value added tax (VAT) and surtaxes.
Deemed sales Deemed promotional expenses
Deemed sales and deemed promotion expenses are both RMB10,000.