High-Top Financing charges its personal-loan holders a 2 percent fee if the full loan principal is paid

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High-Top Financing charges its personal-loan holders a 2 percent fee if the full loan principal is paid prior to the due date. What is the tax effect of this year’s $50,000 of prepayment penalties collected by High-Top?

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Federal Tax Research

ISBN: 9780357366387

12th Edition

Authors: Roby Sawyers, Steven Gill

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Question Posted: Oct 28, 2020 08:34 AM

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High-Top Financing charges its personal-loan holders a 2 percent fee if the full loan principal is paid

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Gross income is equal to 50000 as an interest substitute Note that if the mortgages had been is...View the full answer

Federal Tax Research

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