Disallowed Representation and Entertainment Expense, P35,231.84 Examination disclosed that the amount of representation and entertainment expense reported in your Income Tax Return (ITR) / Audited Financial Statements (AFS) exceeds the maximum allowance of one percent (1%) of net revenue as set forth under Section 34(A)(1)(a)(iv) of the NIRC of 1997, as amended, as implemented by RR No. 10-2002; hence, the amount in excess of the limitation has been disallowed as deduction from gross income. Schedule 4: P 132,067.0O Representation and Entertainment Expense per ITR Less: Allowable Representation and Entertainment Expense Net Revenues per ITR/AFS Multiply by Ceiling Rate (1% of Net Revenue) Disallowed Representation and Entertainment Expense P 9,683,516.00 1% 96,835.16 P 35,231.84

Disallowed Representation and Entertainment Expense, P35,231.84 Examination disclosed that the amount of representation and entertainment expense reported in your Income Tax Return (ITR) / Audited Financial Statements (AFS) exceeds the maximum allowance of one percent (1%) of net revenue as set forth under Section 34(A)(1)(a)(iv) of the NIRC of 1997, as amended, as implemented by RR No. 10-2002; hence, the amount in excess of the limitation has been disallowed as deduction from gross income. Schedule 4: P 132,067.0O Representation and Entertainment Expense per ITR Less: Allowable Representation and Entertainment Expense Net Revenues per ITR/AFS Multiply by Ceiling Rate (1% of Net Revenue) Disallowed Representation and Entertainment Expense P 9,683,516.00 1% 96,835.16 P 35,231.84

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 3BCRQ

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