Page 19 - Chapter 23 - Interest

Solution: Interest-bearing Arrangements

2014:

Interest = 24J include in gross income

1 000 000 x 12.35% x 90/365 = R30 452

2015:

Interest = 24J include in gross income

1 000 000 x 12.35% x 275/365 = R93 048

+

(1000 000 + 30 452 + 93 048 – 100 000) x 12.35% x

90/365 = R31 168