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McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068 Exercise 34
Brian is the sole shareholder of his corporation.Rather than have the corporation pay him a dividend, he had the corporation "loan" him $100,000.The loan had no required interest payments and no maturity date for repayment.What potential tax issue may arise in this situation? Which parties, Brian or the corporation or both, are affected by the classification of the payment?
Explanation
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Dividend and E P account
Dividends are ...
McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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