XYZ Inc.. has a taxation year end of June 30. In February 2022, the Company borrowed $750,000 to fund an expansion. The Company paid $21,000 to obtain this financing. In January 2023, the Company repaid $250,000 of the principal and in June 2024, it repaid the remaining $500,000. The repayment was not financed from other borrowings. Describe the income tax treatment of the $21,000 in financing costs?

Answer rating: 100% (QA)

Heres the income tax treatment of the 21000 financing costs for XYZ Inc Loan Origination February 20... View the full answer