Multiple Choice
The effects of a below-market loan for $100,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company are:
A) The corporation has imputed interest income and the employee is deemed to have received a gift.
B) The corporation has imputed interest income and dividends paid.
C) The employee has no income unless the funds are invested and produce investment income for the year.
D) The employee has imputed compensation income and the corporation has imputed interest income.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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