Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Chapter 5, Problem 61P
To determine
State the amount of interest that can be deducted for each of the situations given.
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B. MATATAG Bank loaned P5,000,000 to a borrower on January 1, 2019. The term of the
loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%.
The first principal and interest payment is due on January 1, 2020. The borrower made
the required payments during 2020 and 2021.
However, during 2021 the borrower began to experience financial difficulties, requiring
the bank to reassess the collectability of the loan.
On December 31, 2021, the bank has determined that the remaining principal payment
will be collected as originally scheduled but the collection of the interest is unlikely.
The bank did not accrue the interest on December 31, 2021.
Present value of 1 at 8%
0.926
For one period
For two periods
For three periods
0.857
0.794
1. What is the impairment loss for 2021?
а. 423,000
b. 217,000
c. 222,000
d. 0
2. What is the interest income for 2022?
a. 126,160
b. 142,640
c. 240,000
d. 0
3. What is the carrying amount of the loan receivable on December 31,…
On September 1, 2024, Lindsey Engineering borrows $414,000 cash. The loan is made by Firstlending, under the agreement that Lindsey will repay the principal with four payments of $103,500. Payments are due by October 1 each year, with the first payment being due October 1, 2025 (next year). Interest on the borrowing is 6%, and Lindsey's year end is December 31.
1. Record the long-term note payable by Lindsey Engineering.
2. RECORD the adjusting entry for interest on December 31, 2024.
3. Record the entry to reclassify the current portion of the note on December 31, 2024.
Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require principal
payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest
payment are due on January 1, 2019. The borrower made the required payments during 2019 and
to 2020. However, during 2020 the borrower began to experience financial difficulties, requiring the bank
to reassess the collectability of the loan. vnGomo) au9 Vd bonsbneu 6w lodio 69y tne
ert On December 31, 2020, the bank has determined that the remaining principal payment will be collected
as originally scheduled but the collection of the interest is unlikely. The bank did not accrue the interest
on December 31, 2020.o 82 o1 1supe b6dblori e beniste16 bns PE to est s bs261obstert
Present value of 1 at 8%vs beidpiew s no belugmo j2oi bap ab obsi snl.noitibe nl
For one period
For two periods
For three periods
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Chapter 5 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 5 - Prob. 1DQCh. 5 - Why does the computation of adjusted gross income...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - What is the difference between a trade or business...
Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - Prob. 14DQCh. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Prob. 17DQCh. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Prob. 20DQCh. 5 - Prob. 21DQCh. 5 - Prob. 22DQCh. 5 - Prob. 23DQCh. 5 - Prob. 24DQCh. 5 - Prob. 25DQCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - Prob. 46PCh. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - Prob. 51PCh. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - Ray, 83, is a used car dealer. He lives in a rural...Ch. 5 - Prob. 58PCh. 5 - Prob. 59PCh. 5 - Prob. 60PCh. 5 - Prob. 61PCh. 5 - Prob. 62PCh. 5 - Prob. 63PCh. 5 - Prob. 64PCh. 5 - Prob. 65PCh. 5 - Prob. 66PCh. 5 - Prob. 67PCh. 5 - Prob. 68PCh. 5 - Prob. 69PCh. 5 - Prob. 70PCh. 5 - Prob. 71PCh. 5 - Prob. 72IIPCh. 5 - Prob. 73IIPCh. 5 - Prob. 74IIPCh. 5 - Prob. 75IIPCh. 5 - Prob. 76IIPCh. 5 - Prob. 77IIPCh. 5 - Prob. 78IIPCh. 5 - Prob. 79IIPCh. 5 - Prob. 80IIPCh. 5 - Prob. 81IIPCh. 5 - Prob. 91CPCh. 5 - Prob. 92DCCh. 5 - Prob. 93DCCh. 5 - Prob. 94DCCh. 5 - Prob. 95TPCCh. 5 - Allison and Paul are married and have no children....
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