Question
On January 1, 2019 Margaret made $190,000 interest free loan to her son, Adam, who used the money to retire a mortgage on his personal
On January 1, 2019 Margaret made $190,000 interest free loan to her son, Adam, who used the money to retire a mortgage on his personal residence and to buy a certificate of deposit. Adam's only income for the year is his salary of $35,000 and $1,400 interest income on the certificate of deposit. The relevant federal interest rate is 8% compounded semiannually. The loan is outstanding for the entire year. Based on the above information, what is the effect of the loan on Margaret's gross income for the year?
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Auditing Algorithms Understanding Algorithmic Systems From The Outside In Foundations And Trends
Authors: Danaë Metaxa, Joon Sung Park, Ronald E Robertson, Karrie Karahalios, Christo Wilson, Jeff Hancock, Christian Sandvig
1st Edition
1680839160, 978-1680839166
