TK company had the following summary of its operation SALE Services Gross Receipts P4,000,000 Net Sales Direct costs of services Cost of Goods Sold Other deductible expenses Net income before EAR expenses Entertainment expense incurred for Duly receipted under affluent Various receipts with no name 2,500,000 Compute for the deductible EAR expenses. P 3,000,000 1,000,000 1,500,000 500,000 1,500,000 Clients Goods P 72,000 20,000 P6,000,000 Suppliers/ customers P28,000 30,000