January 2, 2018 Mr. B contracted a 1-year loan fro Metrobank for the purchase ad a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense fo the same year, his bank deposit with PNB earned an interest income of P2,000. During the y paid business tax of P600. ne deductible interest expense of Mr. B in 2018 is - P14,240 c. P14,760
January 2, 2018 Mr. B contracted a 1-year loan fro Metrobank for the purchase ad a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense fo the same year, his bank deposit with PNB earned an interest income of P2,000. During the y paid business tax of P600. ne deductible interest expense of Mr. B in 2018 is - P14,240 c. P14,760
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter10: Individuals: Income, Deductions, And Credits
Section: Chapter Questions
Problem 24P
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![On January 2, 2018 Mr. B contracted a 1-year P100,000 loan from Metrobank for the purchase of computers. The equipment which
had a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense for one (1) year amounted P15,000.
In the same year, his bank deposit with PNB earned an interest income of P2,000. During the year, he incurred an interest expense on
unpaid business tax of P600.
The deductible interest expense of Mr. B in 2018 is -
a. P14,240 c. P14,760
b. P13,600 d. P14,940](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a975b37-a544-442f-95c4-49e26c1c249d%2Fa9eb3b8a-6f72-41e3-81c3-5bf3e8bc7826%2Fsjkaks_processed.png&w=3840&q=75)
Transcribed Image Text:On January 2, 2018 Mr. B contracted a 1-year P100,000 loan from Metrobank for the purchase of computers. The equipment which
had a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense for one (1) year amounted P15,000.
In the same year, his bank deposit with PNB earned an interest income of P2,000. During the year, he incurred an interest expense on
unpaid business tax of P600.
The deductible interest expense of Mr. B in 2018 is -
a. P14,240 c. P14,760
b. P13,600 d. P14,940
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