USE THE PHILIPPINE TAXATION SYSTEM

Moonshine Corporation had the following items of expense and expenditures in 2020

• Purchase of equipment in cash - 200,000
• Freight on purchase of equipment in cash - 20,000
• 2020 salaries expenses paid this period - 50,000
• Supplies bought in 2019, half was used in 2020 - 16,000
• Depreciation expenses on property - 24,000
• 2020 expenses, not paid this period - 12,000
• 2021 expenses, paid this period - 18,000

Determine the total deductions under Cash and Accrual basis of accounting