Instructions: 1. Use the information to perform required calculations. 2. Use the data provided to answer analysis questions. 3. Ensure that each answer is explained in detail. Avoid general statements by providing specific information and examples that directly relate to the question. 4. Whenever possible, use and cite relevant tax laws, regulatory guidelines, textbooks, or reputable sources that support analysis and decisions. 5. Structure the answers in a clear, logical manner. 6. When relevant, incorporate quantitative data into the analysis. Use calculations to support your conclusions and show it. 7. Ensure that the solutions and recommendations are realistic and feasible within the context of the case study. Consider the practical aspects of implementation and the real-world constraints that might affect outcomes. Profile 1 Name: Dr. James Reyes Business: Medical Practice Gross Income: PHP 3,200,000 Business Expenses: Clinic Rent: PHP 300,000 Medical Supplies: PHP 200,000 Utilities: PHP 100,000 Staff Salaries: PHP 200,000 Continuing Education: PHP 50,000 Insurance: PHP 50,000 Non-Taxable Income: PHP 150,000 (de minimis benefits, reimbursements) Non-Deductible Expenses: PHP 100,000 (personal travel, fines) Tax Regime: 8% flat rate Analyze the profile and answer the following questions: 1. Calculate Dr. James' taxable income using the Optional Standard Deduction (OSD). Determine the total tax owed under the progressive tax rates. Calculate the tax liability if Dr. James chooses the 8% flat rate.Non-Deductible Expenses: PHP 100,000 (personal travel, fines) Tax Regime: 8% flat rate Analyze the profile and answer the following questions: 1. Calculate Dr. James' taxable income using the Optional Standard Deduction (OSD). . Determine the total tax owed under the progressive tax rates. Calculate the tax liability if Dr. James chooses the 8% flat rate. 2. Analyze the benefits and drawbacks of Dr. James using the OSD method versus the itemized deductions method. 3. Recommend the best tax regime for Dr. James, considering his financial data and the nature of his business. Provide a detailed justification for your recommendation, including calculations and rationale. 4. Considering Dr. James' profile, what considerations should he make to optimize his tax liabilities and remain compliant with BIR regulations