On 1 January 2018, Alyssa invested P1,000,000 to BDO’s 5 year, tax free time deposit. The long term deposit pays 10% annual interest every January 1. In need of cash, Alyssa pre-terminated her investment on 1 July 2021. How much is the final tax due in 2021?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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On 1 January 2018, Alyssa invested P1,000,000 to BDO’s 5 year, tax free time deposit. The long term deposit pays 10% annual interest every January 1. In need of cash, Alyssa pre-terminated her investment on 1 July 2021. How much is the final tax due in 2021?

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