USE THE PHILIPPINE TAXATION SYSTEM.

Sunrise Manufacturing is a manufacturer of various products with complex business operations subject to different tax regimes. During the period, it has the following details of income and expenses

SALES:

• Manufacturing operations for the domestic market- 3,000,000
• Operations in less developed areas registered with BOI under ITH - 2,000,000
• Export Operations registered with PEZA - 5,000,000

DIRECT COST:

• Manufacturing operations for the domestic market- 2,000,000
• Operations in less developed areas registered with BOI under ITH - 1,000,000
• Export Operations registered with PEZA - 3,000,000

TRACEABLE EXPENSES

• Manufacturing operations for the domestic market- 300,000
• Operations in less developed areas registered with BOI under ITH - 200,000
• Export Operations registered with PEZA - 400,000

Sunrise Manufacturing has a total of 1,200,000 administrative expenses that are not traceable to a specific type of operations during the year.

Required: DETERMINE THE ALLOWABLE DEDUCTION FOR SUNRISE COMPANY.