A Company Has a Loan with a Carrying Value of $60,000.The

question 34

Multiple Choice

A company has a loan with a carrying value of $60,000.The payment of the loan is not deductible for tax purposes.The tax rate is 30 per cent.What is the tax base for this item?

• A) $0
• B) $60,000
• C) $18,000
• D) $78,000
• E) None of the given answers.

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Definitions:

Accidental Knowledge

Information or insights gained unintentionally or without specific intent to learn.

Conditioned Response

A learned reaction or behavior to a specific stimulus as a result of conditioning or training.

Conditioning Trial

An experimental setup in classical conditioning where a neutral stimulus is paired with an unconditioned stimulus until the neutral stimulus alone elicits a conditioned response.

Voluntary Action

An activity or action undertaken by an individual out of free will, without external compulsion or coercion.