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Emily Patrick formed Teal Corporation a number of years ago with an investment of $ 2 0 0 , 0 0 0 cash, for which

Emily Patrick formed Teal Corporation a number of years ago with an investment of $200,000 cash, for which she received $20,000 in stock and $180,000 in bonds bearing interest of 8% and maturing in nine years. Several years later, Emily loaned the corporation an additional $50,000 on an open account. In the current year, Teal Corporation becomes insolvent and is declared bankrupt. During the corporation's existence, Emily was paid an annual salary of $60,000.

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