Mr. Perez is a sole proprietor running a coffee shop. He reports the following at the end of CY2021.

Gross sales: P1,000,000.00

Life insurance proceeds paid to Mr. Perez: P100,000.00

Supplies used for the coffee shop: P250,000.00

Salaries paid to coffee shop employees: P150,000.00

Interest paid out on a business loan: P20,000.00

Donation made to Red Cross: P30,000.00

Office supplies: P50,000.00

Personal exemption of Mr. Perez: P50,000.00

Compute for the income tax (Philippines tax regulations)