Quiz No. 1 Accounting and Tax Quiz

Mitsu Busy is an independent traveling salesman, deriving his income solely from commissions and personally bearing all expenses without reimbursement or any kind. During the taxable year 2010, Mitsu Busy incurs the following expenses pertaining directly to his activities as an independent traveling salesman:

Travelling expenses - P650,000; Secretarial expenses - P250,000; Long-distance telephone bills - P150,000; Freight expenses for products sold - P300,000; Insurance from products transported P50,000; Life insurance premiums P25,000; Doctor's fees incurred while he was on one of his sales trips - P15,000.

Question: What amount can Mitsu Busy deduct from his gross income?
Answer: P1,400,000


Solution:
Travelling expenses                                     P650,000
Secretarial expenses                                     250,000
Long-distance telephone bills                          150,000
Freight expenses for products sold                  300,000
Insurance from products transported                  50,000
Total                                                          P1,400,000


Winner of P100 cash:

Quiz No. 1: Grace Claire L. Villamor 
                  Lyceum of the Philippines University - Batangas (BSA III-A)


Congratulations!