![StephanieQueen2003](/avatars/45282.jpg)
StephanieQueen2003
08.10.2019 •
Business
Sarah, a majority shareholder in teal, inc., made a $200,000 interest-free loan to the corporation. sarah is not an employee of the corporation.
a. sarah must recognize imputed interest expense and the corporation must recognize imputed interest income.
b. sarah must recognize imputed interest income and the corporation must recognize imputed interest expense.
c. sarah must recognize imputed dividend income and the corporation may recognize imputed interest expense.
d. neither sarah’s nor the corporation’s gross income is affected by the loans because no interest was charged. e. none of these.
Solved
Show answers
More tips
- F Food and Cooking Delight for Gourmets: How to Prepare Liver Pate...
- F Family and Home How to Remove Tar Stains: Tips and Recommendations from Experts...
- F Family and Home How to Remove Fading from Clothes: Tips and Tricks...
- S Sport How to Do a Jumping Split...
- H Health and Medicine How Did Inna Lose Weight on Dom 2?...
- F Family and Home How to Properly Fold Napkins in a Napkin Holder?...
- F Food and Cooking How to Set Up Ventrilo - The Ultimate Guide...
- S Science and Technology How to Make a Homemade Smoker: The Ultimate Guide...
- A Auto and Moto Battle for the Relocation of The Cherkizovsky Market: Who Won?...
- C Computers and Internet How Do You Refill Cartridges?...
Answers on questions: Business
- M Mathematics M JTL = 20x - 10 m LIK = 8x - 20 m JIK = 140 - 6x find the following: x= m m m...
- M Mathematics Calcule a potência abaixo :a) 6–²...
- H History What was the purpose of the Tariff of 1816? Did it work?...
- M Mathematics Please help me is importe ...
- M Mathematics N The Federal Reserve manages the nation s currency and money supply by manipulating interest rates and acting as a lender to banks. overseeing bank collections and...
- M Mathematics Help with this which ones are dependent or independent...
- B Biology Which choice below is NOT a good example of conserving water? A. Watering plants in the afternoon B. Turning the water off while brushing teeth C. Taking showers...
- M Mathematics For what value of x do the expressions 2x+3 and 3x-6 have the same value?...
- M Mathematics Solve the system of equations – 8.2 + 3y = -17 and 3x – y = 7 by combining the equations....
- H History Please read the following excerpt from the Autobiography of Theodore Roosevelt. This was published in 1913, and the actions talked about in the excerpt were during...
Ответ:
The answer is: B) Sarah must recognize imputed interest income and the corporation must recognize imputed interest expense.
Explanation:
Even if Sarah doesn't charge interest on her loan to Teal Inc., she must recognize income from imputed interest. Something similar happens to Teal Inc., even though they don't pay any interest, they must recognize expenses from imputed interest.
Imputed Interest is the interest considered by the IRS to have been paid for tax purposes, It doesn't matter if the interest payment was made or not. The IRS uses imputed interest to collect taxes on interest free loans or loans that charge very low interest rates. They set a minimum interest that should have been charged.
Ответ:
1. True
Explanation:
Both investors' portfolios are equally risky (they are both twice as risky as the market). If any of them invests in stocks with a beta = 1 (market beta), then their portfolio's risk would reduce since the total beta would move towards the market risk. For both of them, the more stocks with beta = 1 that they add to their portfolio's, the more the portfolio's risk will reduce.