1. How much is the tax due if Mr Danny chose the option to use the itemized deductions? _____________ 2. How much is the tax due if Mr Danny chose the option to use the optional standard deduction? _____________
1. How much is the tax due if Mr Danny chose the option to use the itemized deductions? _____________ 2. How much is the tax due if Mr Danny chose the option to use the optional standard deduction? _____________
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 15CE
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Question
Activity 3
Use the following information for the next two questions. Write your answer on a
separate sheet of paper.
Mr Danny earns the following business income in a taxable year.
Sales
P 3,900,000
Sales returns and discounts
100,000
Inventory, beg.
30,000
Purchases
1,800,000
Operating expenses (itemized deductions)
780,000
Inventory, end.
80,000
1. How much is the tax due if Mr Danny chose the option to use the itemized deductions?
_____________
2. How much is the tax due if Mr Danny chose the option to use the optional standard
deduction? _____________
Assessment 3
Use the following information
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