On March 31, 2020, the CHICAGO BULLS Corporation issued a P3, 000, 000 12% promissory note for machinery purchased. Equal principal payment of P1, 000, 000 and interest are payable annually every March 31 starting March 31, 2021. How much is the interest expense for the year of 2021?

On March 31, 2020, the CHICAGO BULLS Corporation issued a P3, 000, 000 12% promissory note for machinery purchased. Equal principal payment of P1, 000, 000 and interest are payable annually every March 31 starting March 31, 2021. How much is the interest expense for the year of 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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