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The interest is deductible to the tune of

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The interest is deductible to the tune of $20,000 ($200,000 multiplied by 10%). Because the goal of
borrowing money is to purchase other investments from which you may earn assessable interest and
income.
In order for interest to be deductible, it must be tied to the business and be an income-producing
investment. A cookware shop's goodwill, premises, equipment, and stock may be producing income
because they are used to run the business in order to make a profit.
b) In terms of amortization, which is the expense of an asset over its useful life, goodwill is deductible as
part of intangible assets. In terms of depreciation expense, which is the cost of buying the equipment over
its useful life, and capital expense, which is the cost of shipping, installing, transferring, replacing, or
renovating the asset, the premises/purchase of equipment is deductible. If the stock value at the end of
the year is not equal to the stock value at the start of the next year, the stock is deductible. The income is
reduced by the difference between the closing and opening stock (if the closing stock is LESS THAN the
opening stock).
c) Advertising expenses are not deductible in the particular circumstance because the business was
reported to be unprofitable. And, in order for an advertising spend to be deducted, it must be tied to your
business, with the expectation of future revenue from those expenses.
d)Interest payments made after the firm has closed are not deductible since the deductible interest
expenditure is calculated based on the business's profits. Instead of separating the total of each expense
and income, the NET DEDUCTION is the amount included in the deduction .
a) In case interest income exceeds interest expense, the amount included in gross income is NET
ASSESSIBLE INTEREST
b) However, if the closing price is more than the opening stock, the difference is included in the
income.)
c) Not having adequate proceeds is due to a lack of sales proceeds in order to discharge a bank
loan and necessitate a monthly interest payment.) It signifies that there was a loss from the sale
of the firm, and that this loss should be deducted as ordinary costs.
d) excess of interest expense over interest income.

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The interest is deductible to the tune of $20,000 ($200,000 multiplied by 10%). Because the goal of borrowing money is to purchase other investments from which you may earn assessable interest and income. In order for interest to be deductible, it must be tied to the business and be an income-produc ...
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