A taxpayer made available the following financial information:       Gross receipts - Php 10,000,000       Cost of service – Php 6,000,000       Expenses:               Depreciation expense – Php 200,000               Miscellaneous expenses – Php 10,000               Office supplies – Php 20,000               Rental  - Php 240,000               Representation expense – Php 100,000               Salaries and wages – Php 1,000,000               Transportation and travel – Php 20,000    How much is the total allowable deduction if the taxpayer is a resident citizen? a. 1,570,000 b. PHP 1,590,000 c, Php 1,500,000 d. Php 7,590,000

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 30P
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A taxpayer made available the following financial information:

      Gross receipts - Php 10,000,000

      Cost of service – Php 6,000,000

      Expenses:

              Depreciation expense – Php 200,000

              Miscellaneous expenses – Php 10,000

              Office supplies – Php 20,000

              Rental  - Php 240,000

              Representation expense – Php 100,000

              Salaries and wages – Php 1,000,000

              Transportation and travel – Php 20,000

 

 How much is the total allowable deduction if the taxpayer is a resident citizen?

a. 1,570,000

b. PHP 1,590,000

c, Php 1,500,000

d. Php 7,590,000

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