Can someone explain this to me Illustration 2BMC may claim the following expenses as part of regular itemized allowable deductions:Total operating cost of storage facilityExcess Milk Bank expense subsidized by BMCP 360,000P 90,000P 450,000TotalBMC shall also claim an additional deduction for the same amount as special itemized allowable deductions. Illustration 2Baguio Medical Center (BMC), a private hospital, previously set up a milk storage facility and a milk bank. Thetotal annual cost of the two facilities were:Milk BankStorage facilityP 100,000TotalP 220,000300,000P 120,000SuppliesStaff Salaries210,00090,00070,000120,00050,000P 360.000MaintenanceTotalP 280,000P 640.000190,000Less: Fees collected from patientsExcess ExpenseP 90,000The milk bank was operated as an integral part of the hospital, but is operated as non-profit. BMCcharges minor fees and subsidizes the facility excess expense.SLIDESMANIA COM

Itemized Deduction While calculating the taxable income first to determine the gross income by taken…

BMC may claim the following expenses as part of regular itemized allowable deductions: Total operating cost of storage facility Excess Milk Bank expense subsidized by BMC P 360,000 P 90,000 P 450,000 Total BMC shall also claim an additional deduction for the same amount as special itemized allowable deductions.