John is a resident citizen. He owns a 6-year time deposit in a local bank which earns a 7% annual interest payable every yearend. Towards the end of the 3rd year, John pre-terminated the deposit. What final tax rate should be the interest income earned until pre-termination? a. Not subject to final tax b.20% c. 5% d. 12% e. 7%

John is a resident citizen. He owns a 6-year time deposit in a local bank which earns a 7% annual interest payable every yearend. Towards the end of the 3rd year, John pre-terminated the deposit. What final tax rate should be the interest income earned until pre-termination? a. Not subject to final tax b.20% c. 5% d. 12% e. 7%

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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