Answer and Explain on how you come up with the answer.

Deductions from Gross Income (6 items x 5 points) Classify the items for deduction in the following scenarios. 1. On January 1, 2016, Mr. V leased his vacant lot for 12 years to Mr. J at an annual rate of P2,400,000. It was also agreed that Mr. J will pay the following: P4,800,000 representing rental payment for year 2016 and 2017; Security deposit of P2,400,000; and Annual real property tax of P30,000 The lease contract states that the lessee will construct a 5-storey building for parking purposes at a cost of P9,500,000. The ownership of the building shall belong to the lessor upon the expiration or termination of the lease contract. The building was completed on July 1, 2018 with an estimated useful life of 15 years. Compute the amount of deduction that Mr. J can claim in relation to a. 2016 lease; b. 2017 lease; C. 2018 lease; and d. 2019 lease. 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Rent Expense P 24,000 Interest Income, net of 20% final tax 24,000 Advertising Expense 6,000 Cost of Sales 300,000 Depreciation Expense 5,000 Salary Expense 120,000 NOLCO 50,000 Interest Expense 60.000 Compute for the total itemized deduction. 3. A Domestic Corporation has the following data on income and expenses: Gross business income P 6,200,000 Deductions including SSS and PhilHealth contributions of P150,000 2,500,000 Contributions to the government for priority project in education 100,000 Contributions to foreign private foundation 100,000 Contributions to domestic charitable organization 190,000 Compute for the deductible charitable and other contributions. Deductions from Gross Income (6 items x 5 points) Classify the items for deduction in the following scenarios. 1. On January 1, 2016, Mr. V leased his vacant lot for 12 years to Mr. J at an annual rate of P2,400,000. It was also agreed that Mr. J will pay the following: P4,800,000 representing rental payment for year 2016 and 2017; Security deposit of P2,400,000; and Annual real property tax of P30,000 The lease contract states that the lessee will construct a 5-storey building for parking purposes at a cost of P9,500,000. The ownership of the building shall belong to the lessor upon the expiration or termination of the lease contract. The building was completed on July 1, 2018 with an estimated useful life of 15 years. Compute the amount of deduction that Mr. J can claim in relation to a. 2016 lease; b. 2017 lease; C. 2018 lease; and d. 2019 lease. 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Rent Expense P 24,000 Interest Income, net of 20% final tax 24,000 Advertising Expense 6,000 Cost of Sales 300,000 Depreciation Expense 5,000 Salary Expense 120,000 NOLCO 50,000 Interest Expense 60.000 Compute for the total itemized deduction. 3. A Domestic Corporation has the following data on income and expenses: Gross business income P 6,200,000 Deductions including SSS and PhilHealth contributions of P150,000 2,500,000 Contributions to the government for priority project in education 100,000 Contributions to foreign private foundation 100,000 Contributions to domestic charitable organization 190,000 Compute for the deductible charitable and other contributions