21, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna. The placement earns 10% annual interest. Quezon, Inc. pre-terminated the deposit on June 30, 2024. Compute the final tax to be withheld on pre-termination. P0

21, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna. The placement earns 10% annual interest. Quezon, Inc. pre-terminated the deposit on June 30, 2024. Compute the final tax to be withheld on pre-termination. P0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 2, 2021, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna. The placement earns 10% annual interest. Quezon, Inc. pre-terminated the deposit on June 30, 2024. Compute the final tax to be withheld on pre-termination.

P10,000

P17,500

P42,000

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