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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
.OY Uses a](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0a661ee-4fdd-463b-8bea-f9938f6c5689%2F50a41241-f73c-438d-937a-d993713a57e8%2F1gsbrh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
.OY Uses a
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