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BFDBFD Company is 80% owned by FabianFabian. On January 1 of the current year, BFDBFD makes a loan of $ 50 comma 400$50,400 to FabianFabian.
BFDBFD Company is 80% owned by FabianFabian. On January 1 of the current year, BFDBFD makes a loan of $ 50 comma 400$50,400 to FabianFabian. The loan carries an interest rate of 55%. The prescribed rate of interest at the time of the loan is 66%. The loan requires that FabianFabian make annual payments of $ 20 comma 160$20,160, starting in the following taxation year, until the balance is repaid. How much will FabianFabian recognize in Net Income for Tax purposes related to the loan in the current year
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