Total deductible expenses using itemized deduction.

2. Total deductible expenses using OSD.

3. Net taxable income using the amount that provides tax advantage.

4. Discuss what method of deduction provides tax advantage.

 

X Co. reported the following income and expenses for a calendar year: P5,000,000 2,000,000 1,000,000 Sales Cost of sales Operating expenses during the year NOLCO Dividend income from domestic corporation Interest income, net of final tax 500,000 60,000 40,000 Only 30% of the operating expenses can be substantiated with official receipts. Included in the operating expenses is P50,000 interest expense.