A Ltd has borrowed the following loans from a bank. -A loan of $1m to finance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A Ltd has borrowed the following loans from a bank. -A loan of $1m to finance its business activities in Hong Kong, and -A loan of $1.8m to finance its offshore business The two loans are secured by an overseas fixed deposit of $2m. In the year of assessment 2020/21, A Ltd earned interest of $28,000 from the overseas deposit and paid $30,000 interest in the $1m loans and $40,000 on the $1.8m loans. How much interest can A Ltd deduct for profits tax purposes in the year of assessment 2020/217 A. $42,000 B. $16,000 OC. $20,000 OD. $2,000 A Ltd has borrowed the following loans from a bank. -A loan of $1m to finance its business activities in Hong Kong, and -A loan of $1.8m to finance its offshore business The two loans are secured by an overseas fixed deposit of $2m. In the year of assessment 2020/21, A Ltd earned interest of $28,000 from the overseas deposit and paid $30,000 interest in the $1m loans and $40,000 on the $1.8m loans. How much interest can A Ltd deduct for profits tax purposes in the year of assessment 2020/217 A. $42,000 B. $16,000 OC. $20,000 OD. $2,000
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The corr... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
This activity was suggested by Gnanadesikan et al. (1997). Figure 2.7 contains a population of 100 rectangles. Your goal is to estimate the total area of all the rectangles by taking a sample of 10...
-
This activity was suggested by Gnanadesikan et al. (1997). Figure 2.7 contains a population of 100 rectangles. Your goal is to estimate the total area of all the rectangles by taking a sample of 10...
-
Johnson, Inc. has 4.0 million shares of common stock outstanding and is subject to a corporate tax rate of 21 percent. The firm currently has no debt. The expected annual earnings before taxes of...
-
The statements of financial position of Parkway plc for 20X7 and 20X8 are given below, together with the income statement for the year ended 30 June 20X8. Statement of comprehensive income of Parkway...
-
Customer Quality Feedback at Apple Computer Apple Computer Homepage: wmapple.com In the fast-paced personal computer industry, it would be very tempting for a computer company to rush a new product...
-
A \(\$ 10,000,9\) percent, one-year note payable was issued on July 31. The balance sheet at December 31 will report interest payable of a. \(\$ 0\) because the interest is not due yet b. \(\$ 522....
-
When using explicit forecasts of future returns, we should use: a. The arithmetic average and the sample standard deviation b. The geometric average and the sample standard deviation c. The...
-
Willies Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $ 875,000 Shop...
-
x+5 6x-30 3. These two angles are 4. Set up an equation to solve these equation Use button to input the equation Input your answer WITHOUT spaces 5. Solve for x x= So, to solve for x we must set...
-
You have recently started work as a management accountant at Zilber Hotels, reporting to the financial controller. Draft management accounts have been prepared for the year just finished, and the...
-
A certain crying baby emits sound with an intensity of 8.0 x 10-8 W/m2. What is the intensity level due to a set of five such crying babies, all crying with the same intensity? You can neglect any...
-
If a trial balance is showing a Cash account with a credit balance of $2,340, What does it means.
-
On Jan 1, you sold short 100 shares of Apple stock at $140 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $120...
-
Wildhorse Company has a unit selling price of $720, unit variable costs of $380, and fixed costs of $196,520. Compute the break-even point in sales units using (a) the mathematical equation and (b)...
-
On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the...
-
AT-bill with a face value $10,000 and 120 days to maturity is selling at a bank discount ask yield of 2%. a. What is the price of the bill? b. What is its bond equivalent yield?
-
Situation: Your boss comes to your office. He has just seen a YouTube video. A single person appears in the video. Although he appears in the shadows in an effort to hide his identity, the boss cl...
-
Write each fraction as a percent. 7 50
-
The ordering of the three sections of the statement of cash flows is backwards for start-up firms, but it is more appropriate for businesses once they are up and running. Explain.
-
The following information relates to a firm's pension plan. Prior service cost due to 2017 amendment .................................. $ 60,000 PBO, January 1, 2017...
-
Assume that a start-up manufacturing company raises capital through a series of equity issues. a. Using the financial statement template below, summarize the financial statement effects of the...
-
As a sales incentive, a computer manufacturer, Burgot SA, offers to buy back its computers after three years at 25% of the original selling price, so providing the customer with a guaranteed residual...
-
A company is obliged to reveal, in note form, a quantitative assessment of the dilution of future earnings per share on the assumption that convertible stock in issue will experience total conversion...
-
Some members of the board of directors of a company deliberating over a possible source of new capital believe that irredeemable debentures carrying a fixed annual coupon rate would suffice. They...
Study smarter with the SolutionInn App