prescribed interest rate is $2\%.$

Read the requirements.

Requirement A$.$ Determine the income tax consequences to Marco if the loan is repaid on January $1,2024.$

What amount will be included in Marco's $2023$ income?

What is the interest benefit in $2023?$

Can the payment be deducted from Marco's income for $2024?$

Required

Determine the income tax consequences to Marco if the loan is repaid:

A$.$ on January $1,2024$;

B$.$ on December $31,2024$