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Albert and Elva Each Own 50% of the Stock of Eagle,Inc.(a

Question 85

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Albert and Elva each own 50% of the stock of Eagle,Inc.(a C corporation).To cover what is perceived as temporary working capital needs,each shareholder loans Eagle $200,000 with an annual interest rate of 6% (same as the Federal rate)and a maturity date of one year.The loan is made at the beginning of 2012.
Albert and Elva each own 50% of the stock of Eagle,Inc.(a C corporation).To cover what is perceived as temporary working capital needs,each shareholder loans Eagle $200,000 with an annual interest rate of 6% (same as the Federal rate)and a maturity date of one year.The loan is made at the beginning of 2012.

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