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At the End of 2014, Interest on a Perpetual Loan

Question 32

Multiple Choice

At the end of 2014, interest on a perpetual loan is paid to the holder.The perpetual debt is shown as an equity instrument.Based on the above the interest is:


A) Added for income tax purposes
B) Deducted on the income statement
C) Added to the income statement
D) Deducted for income tax purposes

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