The following data were provided by a Domestic Corporation for 2020: Taxes and licenses 40,000 Documentary stamp taxes 2,000 Other percentage taxes 120,000 Refund of local business taxes paid in 2019 10,000 Income tax due for 2020 300,000 Refund of income tax for 2019 25,000 Interest income: From trade notes receivable 100,000 From peso bank deposits 120,000 From bank deposits abroad 20,000 Interest expense on bank loan 150,000 Tax assessment on underpayment of percentage taxes 75,000 Surcharges on tax assessments 25,000 |Interest expense on tax assessments 12,500 Determine the amount of deductible interest expense for 2020 (Train law).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data were provided by a Domestic Corporation for 2020:
Taxes and licenses
40,000
Documentary stamp taxes
2,000
Other percentage taxes
120,000
Refund of local business taxes paid in 2019
10,000
Income tax due for 2020
300,000
Refund of income tax for 2019
25,000
Interest income:
From trade notes receivable
100,000
From peso bank deposits
120,000
From bank deposits abroad
20,000
Interest expense on bank loan
150,000
Tax assessment on underpayment of percentage taxes
75,000
Surcharges on tax assessments
25,000
|Interest expense on tax assessments
12,500
Determine the amount of deductible interest expense for 2020 (Train law).
Transcribed Image Text:The following data were provided by a Domestic Corporation for 2020: Taxes and licenses 40,000 Documentary stamp taxes 2,000 Other percentage taxes 120,000 Refund of local business taxes paid in 2019 10,000 Income tax due for 2020 300,000 Refund of income tax for 2019 25,000 Interest income: From trade notes receivable 100,000 From peso bank deposits 120,000 From bank deposits abroad 20,000 Interest expense on bank loan 150,000 Tax assessment on underpayment of percentage taxes 75,000 Surcharges on tax assessments 25,000 |Interest expense on tax assessments 12,500 Determine the amount of deductible interest expense for 2020 (Train law).
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