Love Enterprises incurred the following business expenses in the taxable year 200x:

a)Allowance per aging of accounts receivable at the beginning and ending of the year are P20, 000 and P30, 000 respectively. The firm's provision for bad debts during the year is P15, 000.

b)Accumulated depreciation on machine at the beginning is P100, 000 but at the end of the year is P110, 000. During the year, the firm sold a machine with a cost of P300, 000 and an accumulated depreciation of P30, 000 and purchase at the end of the year a new machine worth P400, 000 with a better capability.

c)Research and development cost of P500, 000 treated as deferred expense.

d)Contribution during the year are as follows:

To the government for priority program in sportsP50, 000

To the government for public purposes10, 000

To the accredited NGO's total administrative expenses is 35%100, 000

To the church of Baguio60, 000

Net income before contribution2, 500,000

what is the total allowable deduction?