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Tax Questions applying 2019 US Tax Would really appreciate if you can also show the work or explanation. Thank you! 10. In 2018 Bonnie, a
Tax Questions applying 2019 US Tax Would really appreciate if you can also show the work or explanation. Thank you!
10. In 2018 Bonnie, a sole proprietor, loaned her employee, John, $10,000 to help him buy a car. In 2019, before he repaid the $10,000, Bonnie told John that she was "tearing up the $10,000 note in recognition of his strong job performance. How should John treat the amount forgiven? b. c. d. e ordinary taxable income in year of loan ordinary taxable income in year of forgiveness excludable gift in year of loan. cxcludable gift in year of forgiveness long-term capital gain in year of forgiveness. 11. In order to shift the taxation of dividend income from a parent to a child, a. the parent must direct the corporation to pay the dividend to the child. b. the parent must transfer ownership of the stock to the child. c. the parent can deposit the dividend in the child's bank account. d. all of the above will result in shifting the taxation to the child. 12. A taxpayer is in the top tax bracket. She receives $100,000 of dividends from U.S. stocks. Her after-tax cash flow from the dividends is b. $63,000. $85,000. $80,000. $76,200. $81,200. eStep by Step Solution
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