30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for use in his business, due in five years. On December 1, 2021, Mr. Lancelot pays his first year's interest of P600. Mr. Lancelot is on the accrual method of accounting. How much of his interest can be deducted in his 2021 calendar year income tax returns? а. 600 b. 500 c. 300 d. 250

30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for use in his business, due in five years. On December 1, 2021, Mr. Lancelot pays his first year's interest of P600. Mr. Lancelot is on the accrual method of accounting. How much of his interest can be deducted in his 2021 calendar year income tax returns? а. 600 b. 500 c. 300 d. 250

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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