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