Question
Alicia Anderson loans her son $15,000 and puts in the contract that he is to pay it back at 5% interest. The prime rate is
Alicia Anderson loans her son $15,000 and puts in the contract that he is to pay it back at 5% interest. The prime rate is 2.5%. Before he makes a payment, she cancels the note. Taking into account the annual exclusion amount for 2018, what is the dollar amount of the gift?
| A. | $0 | |
| B. | $375 | |
| C. | $750 | |
| D. | $15,750 |
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Glencoe Accounting
Authors: McGraw-Hill
1st Edition
0021400881, 9780021400881
