Mae Sy, widow, is a proprietor of Mae Beauty Brands which is a merchandising business. She acquired a 10-year loan from BDO Bank on January 2, 2021 amounting to P13,500,000.00 which she intended to: 1. buy a 3 storey commercial building worth P5,000,000.00 ( constructed in 2015 for a 50 years life span) 2. construct a residential house worth P3,500,000.00 3. buy merchandise worth P5,000,000 to be stocked at the 3rd floor of the commercial building At the end of 2021, the BDO issued statement included a P1,080,000.00 interest to be debited from her account. Depreciation for both the commercial building and the house summed up to P1,200,000.00 Determine how much loan payable in business has Mrs. Sy as of December 31, 2021 if portion of principal amount is debited from Ms. Sy's account. Likewise, determine the total amount to be included as deductions from business arising from these transactions for the year mentioned. Explain.
Mae Sy, widow, is a proprietor of Mae Beauty Brands which is a merchandising business. She acquired a 10-year loan from BDO Bank on January 2, 2021 amounting to P13,500,000.00 which she intended to: 1. buy a 3 storey commercial building worth P5,000,000.00 ( constructed in 2015 for a 50 years life span) 2. construct a residential house worth P3,500,000.00 3. buy merchandise worth P5,000,000 to be stocked at the 3rd floor of the commercial building At the end of 2021, the BDO issued statement included a P1,080,000.00 interest to be debited from her account. Depreciation for both the commercial building and the house summed up to P1,200,000.00 Determine how much loan payable in business has Mrs. Sy as of December 31, 2021 if portion of principal amount is debited from Ms. Sy's account. Likewise, determine the total amount to be included as deductions from business arising from these transactions for the year mentioned. Explain.
Chapter3: Income Sources
Section: Chapter Questions
Problem 86P
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Mae Sy, widow, is a proprietor of Mae Beauty Brands which is a merchandising business. She acquired a 10-year loan from BDO Bank on January 2, 2021 amounting to P13,500,000.00 which she intended to:
1. buy a 3 storey commercial building worth P5,000,000.00 ( constructed in 2015 for a 50 years life span)
2. construct a residential house worth P3,500,000.00 3. buy merchandise worth P5,000,000 to be stocked at the 3rd floor of the commercial building
At the end of 2021, the BDO issued statement included a P1,080,000.00 interest to be debited from her account. Depreciation for both the commercial building and the house summed up to P1,200,000.00 Determine how much loan payable in business has Mrs. Sy as of December 31, 2021 if portion of principal amount is debited from Ms. Sy's account. Likewise, determine the total amount to be included as deductions from business arising from these transactions for the year mentioned. Explain.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT