During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation. How much is the allowable regular itemized deductions?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
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Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 52P
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During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation.

How much is the allowable regular itemized deductions?

A foreign corporation sold a condominium unit to Mr. Mauricio for P10 million which it acquired at a cost of P5 million. The fair market value of the said property per tax declaration was P12 million while its zonal value was P15 million.

How much is the capital gains tax?

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