Cynthia found various ways to make use of her money to generate income. Thefollowing summarizes all the income she was able to derive from her use of money:• Interest income from loans granted to online sellers who did not have enoughcapital on their own - P25,000• Interest income on a 90-day time deposit with BPI. The amount of deposit isP500,000 which pays 7% interest per annum. The interest was alreadycredited to her account.• Interest income on her savings account maintained in her cooperative -P5,000• Interest income on promissory notes of clients – P7,000How much interest income is subject to final tax?a. P40,750b. P15,750c. P13,750d. P8,750

Interest income is the income which is earned on the bank deposits or the borrowings. Given in the…

Answered: Cynthia found various ways to make use…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 69P

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Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000 full price of the car. She negotiated with the sales agent and paid a down payment of ₱2,000,000 and borrowed ₱3,000,000 from Pure Gold Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Ms. Ligaya will make payments of ₱826,470.14 at the end of each year. How much will be the principal amortization on the 2nd payment? (Provide solution/ explanation)a. ₱706,470 b. ₱724,118 c. ₱734,729 d. ₱754,683
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