XYZ Corp. is engaged in the business of running a travel agency. The company reports the following for CY2021. Compute for Income tax due. Upon conduct of valuation review of the company's accountant, XYZ's net assets do no exceed P100,000,000.00 in value. Gross receipts: P1,575,500.00 Royalty payments paid by a Singaporean company using the software developed by XYZ for in processing applications for travel agencies: P350,000.00 Salaries to employees of the travel agency: P350,000.00

Rental payments for premises being rented out for the travel agency: 350,000.00

Office supplies used in the business: P100,000.00

Taxes and licenses paid: P50,000.0