PROBLEMS

P10.1.
The following data were provided by Alpha Corporation (domestic corporation other than MSME)
for 2021:
DETERMINE THE FOLLOWING
1. Deductible interest expense in 2021 - 142,500
2. Deductible taxes in 2021 - 239,000
3. • Taxable tax refunds in 2021 - 10,000

P10.2.
On January 1, 2021, Mike leased his vacant lot for a period of 12 years to Leomar at an annual rate of
P2,400,000. It was also agreed that Leomar will pay the following:
P4,800,000 representing rental payment for year 2021 and 2022.
DETERMINE THE FOLLOWING
1. Deductible expenses of Leomar in 2021- 2,430,000
2. Deductible expenses of Leomar in 2022 – 2,430,000
3. Deductible expenses of Leomar in 2023 – 2,930,000

P10.3.
Cilord borrowed money from the Citbank amounting to P1,000,000 at an annual interest rate of 10%.
He invested the money in deposi substitutes earning annual interest income of 12%.
Required: Determine the deductible interest of Clifford. – 76,000