Shareholder loans $150,000 to his controlled corporation not evidenced by a note.

Does the shareholder report interest income (Yes/No) _______________

What Code Section __ 1.1367-2(a)._____________

What if anything does Corp. X report (2-3 words) _______________________________

How is interest computed (4 10 Words) ______________________________________

Code Section for Part d above _______________

What is the name for this type of debt _________________

For loans over 9 years in duration the interest rate is compounded based on what rate of interest (3 words) _________________________

Shareholder A loans $200,000 to Corp X and Corp X fails to repay regarding the nature of any deduction:

What Code Section will the IRS likely assert ____________

In Part a above, what is the tax result (2 to 5 words) _____________________________

What Code Section will A try to assert ____________

Will A be likely to succeed? (Yes / No) ____________

Why in d above? (2 4 sentences)

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