Question
On January 1, 20X2, Mr. X loaned an entrepreneur $25,000 at 5% annual interest. Mr. X also incurred loan registration fees of $750. In 20X5,
On January 1, 20X2, Mr. X loaned an entrepreneur $25,000 at 5% annual interest. Mr. X also incurred loan registration fees of $750. In 20X5, Mr. X setup a reserve for unpaid interest of $3,000 as he not received any interest or principal repayments due to financial hardships of the entrepreneur. How much of these expenses can Mr. X deduct in 20X5?
A) $1,250
B) $1,400
C) $3,150
D) $5,000
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
