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How much is the allowable interest expense

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Reference no: EM133137115

Question - LMN Corp has the following data showing for the current year:

Interest on peso savings account, net of tax 30,000

Interest on dollar savings account, net of tax 15,000

Interest expense on bank loans 60,000

RCIT rate applicable 20%

Required - How much is the allowable interest expense?

a. 0

b. 25,000

c. 35,000

d. 60,000

e. None of the above

Reference no: EM133137115

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