A Ltd has borrowed the following loans from a bank. -A loan of $1m to finance...
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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
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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