Ms. Faye, CPA, is a private practitioner, with office at Makati City. She renders tax and accounting services to her clients. During 20A1, she derived gross revenues amounting to P10,000,000 for sale of services with discounts of P240,000. She and her staff incurred the following expenses:

• Taxi fare from office to the client within Metro Manila and vice versa of P50,000. These are supported by taxi official receipts issued in the name of Ms. Faye.

• Bus fare from office to the client within Metro Manila and vice versa of P12,000. These are supported

bus receipts. However, Ms. Faye's name was not indicated on the face of the bus

recelots

• Airplane fare for domestic travels which are client related of P250,000. These are supported by plane tickets and official receipts issued in the name of Ms. Faye.

• Airplane fare for international travels in connection with business conventions of P125,000. These are supported by plane tickets and official receipts in the name of Ms. Faye. These are also supported by official invitation from the hosts.

• Hotel and food charges for domestic travels of P100,000. However, only P60,000 were business related while the balance pertains to personal expenses. The entire amount was supported by official receipts issued in the name of Ms. Faye.

• Hotel and food charges for overseas travels of P80,000. Out of this amount,

• P25,000 were personal in nature. The entire amount was supported by official receipts issued in the name of Ms. Faye.

• Fixed representation expenses paid to her employees of P100,000. However, these were not subjected to withholding tax.

• Restaurant charges of P45,000 supported by official receipts issued in the name of Ms. Faye. Out of this amount, P30,000 pertains to expenses incurred in entertaining her clients while the balance pertains to expenses related to internal meetings with staff. These were supported by official receipts issued in the name of Ms. Faye.

• Membership fees of P12,000 for membership in various professional organizations. These were supported by official receipts issued in the name of Ms. Faye.

• Restaurant and hotel charges of P8,000 for attendance in business meetings of various professional organizations. These were supported by official receipts issued in the name of Ms. Faye.

• Tickets for various movies, concerts and plays of P52,000 incurred in entertaining clients. These were supported by official receipts issued in the name of Ms. Faye. Charges of sports club for P25,000 incurred in entertaining clients. These were supported by official receipts issued in the name of Ms. Faye.

Required:

1. Determine the deductible travel expenses for the year ended December 31, 20A1

2. Determine the deductible transportation expenses for the year ended December 31, 20A1.

3. Determine the deductible entertainment, amusement and recreation (EAR) expenses for the year ended December 31, 20A1.

4. Determine the deductible expenses other than travel and EAR expenses for the year ended December 31, 20A1.

5. Assume that Faye is engaged in sale of goods, determine the deductible EAR expenses for the year ended December 31, 201.

6. Assume that Faye had sale of goods of P2,000,000 with P180,000 discount, determine the deductible EAR expense for the year ended December 31, 20A1.

7. Assume that Faye had sale of services of P20,000,000 with P300,000 discount, determine the deductible EAR expense for the year ended December 31, 20A1.