Answered: regular itemized deductions

Business

Accounting

regular itemized deductions

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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Question

Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the following data on expenses for the taxable year.

Salary expense, P12,000,000

Rent expense, P2,400,000

Advertising expense, P600,000

Depreciation expense, P500,000

Interest expense, P6,000,000

Interest income, net of 20% final tax, P2,400,000

How much is the regular itemized deductions?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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