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Problem - On July 1, 2020, Julio Company assigned P1300300 accounts receivable to a bank to secure an P800300 loan, with 1% monthly interest. The customer was not notified. Collections were: P200300 in July, P600300 in August, and P200300 in September. At the end of each month, the entity remitted the collections (or amount due) to the bank plus interest.
1. How much is the total interest expense incurred in 2020?
2. How much was the final payment to the bank?
Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference
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