PLEASE USE THE PHILIPPINE TAX SYSTEM

7. RE University had the following major capital expenditures during the year. a. RE paid the P10M contract price of a building which was completed in the middle of the year. The building is expected to be used for 50 years with P1M residual value. REO expensed the entire amount. b. RE spent P1,200,000 repair which was completed at the end of the first quarter on another building. At the start of the year, the building had a book value of P12,000,000 and a remaining useful life of 40 years. After the repair, the building was appraised at P15,000,000. c. RE paid P1,000,000 for a license to use a computer software intended for learning management for 10 years. Required: Compute the deductible depreciation expense. 8. TK Company had the following summary of its operation: Sales of Service Sales of Goods Gross Receipts P 4,000,000 Net sales Direct costs of services 2,500,000 Cost of goods sold P 6,000,000 Other deductible expenses 1,000,000 Other deductible expenses 3,000,000 Net income before entertainment 500.000 1,500,000 P 1,500.000 Entertainment expenses incurred for clients: Duly receipted under Affluent P 72,000 Entertainment expenses for suppliers/customers: Various receipts with no name 20,000 P. 28,000 30,000 Required: Compute the deductible entertainment, amusement and recreation expenses