31. Fanny uses accrual method of accounting. She owns a land which she leased to Saber for 2 years at an annual rental of P100,000. On July 1, 2021, she received P200,000 from Saber representing the rental covering the period July 1,2021 to June 30, 2022. For 2021, Fanny will report an income subject to tax of a. 50,000 b. 200,000 c. 100,000 d. 150,000 32. Based on the data in No. 3, Saber using cash method can deduct an expense of a. 50,000 b. 200,000 c. 100,000 d. 150,000

31. Fanny uses accrual method of accounting. She owns a land which she leased to Saber for 2 years at an annual rental of P100,000. On July 1, 2021, she received P200,000 from Saber representing the rental covering the period July 1,2021 to June 30, 2022. For 2021, Fanny will report an income subject to tax of a. 50,000 b. 200,000 c. 100,000 d. 150,000 32. Based on the data in No. 3, Saber using cash method can deduct an expense of a. 50,000 b. 200,000 c. 100,000 d. 150,000

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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