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) Deducted on the statement of retained earnings
B) Added to the statement of retained earnings
C) Deducted on the income statement
D) Added for income tax purposes

Question

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The Answer of 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) Deducted on the statement of retained earnings
B) Added to the statement of retained earnings
C) Deducted on the income statement
D) Added for income tax purposes

At the End of 2014,interest on a Perpetual Loan Is