Arlene Diane V.

Orozco

1. Sales 2,100,000
Cost of sales (600,000)
Gross profit 1,500,000
S and A expense (700,000)
Net Income P800,000

Gross Sales 2,100,000

OSD rate x 40%
Opt. standard deduction P840,000

Gross Sales 2,100,000

Cost of Sales - .
Gross Income 2,100,000
Opt deduction (840,000)
Net Income P1,260,000

2. Sales 3,400,000
Cost of Sales -
Other taxable income 120,000
Total Sales 3,520,000
OSD rate x 40%
Opt. Standard deduction 1,408,000

Sales 3,900,000
Cost of sales (1,200,000)
Gross Income 2,200,000
Other taxable income 120,000
Total Gross Income 2,320,000
OSD rate x 40%
Opt standard Deduction P928,000
3. Accrual basis

Receipts 800,000
Uncollected billings 100,000
Total revenue 900,000
OSD rate x 40%
Opt standard deduction P 360,000

Cash Basis

Receipts (current year billing) 800,000

Receipts (last year billing) 200,000
Total Gross receipts 1,000,000
OSD rate x 40%
Opt Standard Deduction P 400,000