On January 2, 2018 Mr. B contracted a 1-year P100,000 loan from Metrobank for the purchase of computers. The equipment whichhad a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense for one (1) year amounted P15,000.In the same year, his bank deposit with PNB earned an interest income of P2,000. During the year, he incurred an interest expense onunpaid business tax of P600.The deductible interest expense of Mr. B in 2018 is -a. P14,240 c. P14,760b. P13,600 d. P14,940

When you take loans from the banks than interest are to be paid and expenses to be recognized but…

January 2, 2018 Mr. B contracted a 1-year loan fro Metrobank for the purchase ad a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense fo the same year, his bank deposit with PNB earned an interest income of P2,000. During the y paid business tax of P600. ne deductible interest expense of Mr. B in 2018 is - P14,240 c. P14,760

January 2, 2018 Mr. B contracted a 1-year loan fro Metrobank for the purchase ad a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense fo the same year, his bank deposit with PNB earned an interest income of P2,000. During the y paid business tax of P600. ne deductible interest expense of Mr. B in 2018 is - P14,240 c. P14,760

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 24P

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