30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for use in his business, due in five years. On December 1, 2021, Mr. Lancelot pays his first year's interest of P600. Mr. Lancelot is on the accrual method of accounting. How much of his interest can be deducted in his 2021 calendar year income tax returns? а. 600 b. 500 c. 300 d. 250
30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for use in his business, due in five years. On December 1, 2021, Mr. Lancelot pays his first year's interest of P600. Mr. Lancelot is on the accrual method of accounting. How much of his interest can be deducted in his 2021 calendar year income tax returns? а. 600 b. 500 c. 300 d. 250
Chapter6: Accounting Periods And Other Taxes
Section: Chapter Questions
Problem 7MCQ: B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash...
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