How much is the deductible interest expense?
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13. In 2022, Mr. Sun Ho was charged interest expense on a business related loan in the amount of PHP 60,000. His interest income on bank account with BPI is PHP 720.
How much is the deductible interest expense?
a. None
b. PHP 59,856
c. PHP 144
d. PHP 60,000
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- 3. on June 50, Di María's Company sold a car to De Paul's Company on June 30,2022. De Paul's Company signs 1 a $800,000, 4%, 9-month note. What entry will Di María's Company make on March 30,2023? A Cash 824,000 B Cash Notes Receivable Interest Revenue • C Cash D Cash Notes Receivable Notes Receivable Notes Receivable Interest Receivable Interest Revenue 824,000 800,000 24,000 824,000 800,000 800,000 824,000 800,000 16,000 8,000On January 1, 1980, Jack deposited 1,000 in Bank X to earn interest at the rate of j per annum compounded semiannually. On January 1, 1985, he transferred his account to Bank Y to earn interest at the rate of k per annum compounded quarterly. On January 1, 1988, the balance at Bank Y is 1,990.76. If Jack could have earned interest at the rate of k per annum compounded quarterly from January 1, 1980 through January 1, 1988, his balance would have been 2,203.76. Calculate the ratio k/j.On October 1, 2023 PT. Leci borrowed $500,000 from Pineapple Bank by signing a 10-month, 6% note. If on December 31 PT. Leci makes adjusting entries, then on August 1, 2024 what is the amount of interest expense recorded by PT. Lychee when paying off the notes? a. 17.500 b. 21 000 c. 9.000 d. 30.000 e. 7.500
- 1. Mr. Reyes borrows P600, 000 at 12% compounded annually, agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment? ANS. 162,378.06A resident citizen has the following data for a taxable year: Ordinary income P300,000 Ordinary loss 50,000 Interest income on bank deposit 10,000 Capital gains (Assets held for 6 months) 20,000 Capital gains (Assets held for 3 years) Capital loss (Assets held for 7 months) 30,000 40,000 Determine the amount of taxable net income.10.4 Allocation of the Monthly Payment (pp. 584-387) Compute (a) the allocation of the monthly payment toward principal and interest and (b) the new principal. Rowena Tinley obtains a 30-year, $90,000 mortgage from State Bank. The interest rate is 7.5%, and her monthly payment is $629.10. For the first payment, what is the amount of (a) interest, (b) payment to principal, and (c) new principal? Step 1: Find the interest. Principal x Rate x Time $90,000.00 x 7.5% x 12 = $562.50 interest Step 2: Find the payment to principal. Monthly Payment Interest $629.10 $562.50 - $66.60 payment to principal Step 3: Find the new principal. Previous Balance - Payment to Principal $90,000.00 $66.60 = $89,933.40 new principal Review Exercises Find the (a) amount for interest, (b) amount for principal, and (c) new principal. Interest First Monthly Amount for Payment Amount for Mortgage Amount New Principal b. $ Principal C.S Rate Interest 26. $ 60,000 7.0% $399.00 a. S 27. 130,000 5.5 738.40 a. b. 28.…
- 14. How much may Purple Corporation, a calendar-year accrual-basis corporation, deduct if it paid $3,000 on April 1 for an insurance policy for the next three years, prepaid six months interest of $450 on November 1, and paid $2,000 rent for December and January on December 1. a. $1,900 b. $2,450 c. $2,600 d. $5,450Problem 8-17 Calculation of Gain or Loss, Installment Sales (LO 8.8, 8.10) Steve Drake sells a rental house on January 1, 2021, and receives $90,000 cash and a note for $55,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $30,000. Steve's original cost for the house was $172,000 on January 1, 2013 and accumulated depreciation was $32,000 on the date of sale. He collects only the $90,000 down payment in the year of sale. a. If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.Accounting Problem 9. A taxpayer deducted P500 interest expense in 2017 but failed to pay the same due to financial difficulty. The lender condoned the interest in 2021. Data are as follows: 2017 2018 2019 2020 2021 Income before interest P100 (P130) P80 (P160) P300 (Interest Expense)/ Condonation of interest (500) 500 Q1. What is the taxable income in 2021? Q2. What is last year to apply P160 NOLCO incurred in 2020?
- 23 Mr Hamed having furniture manufacturing business in Ibri. Always he purchases wood (Raw materials) from Al Buraimi wood suppliers.On 1st May 2021 Mr Hamed purchased wood for OMR3000 on credit and paid OMR 1000 immediately. For the remaining amount Mr Hamed gave written promise to the supplier to pay that amount on 31st December 2021. The written promise given by Mr Hamed to the supplier is known as: a. Short-term notes receivables b. Invoice c. Receipt d. Short term notes payablesMr. X lends $20,000 to Mr. Y on May 6, 2021. A promissory note is written by Mr. Y at a simple interest rate of 9%, with a due date of October 6, 2021. The maturity value of the note is $20,769.32. The note was sold by Mr. X on June 26, 2021 to Mr. C who discounts the note at a simple discount rate of 8%. What price does Mr. A receive for the note? $20,291.34 O $20,305.00 O $20,302.09 $20,315.15On October 1, 2024, Green Corporation loans one of its employees $26,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Green will recognize in 2024 and 2025.
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